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Is Taking a Mortgage the WORST Decision Ever??
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enyands
#531 Posted : Tuesday, October 20, 2015 10:08:44 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
Taking Mortgage in kenya is the worst decision ever . Remember the rates aren't fixed.its pegged to govt policies and political waves. From 17% to 27% .. just to live a dream fantasy house but inside yourself your are burning in a nightmare ? Not worth it at all
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Boris Boyka
#532 Posted : Tuesday, October 20, 2015 10:39:55 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
MaichBlack wrote:
A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.

Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!

That is how fast you can get screwed!!!

To make it worse it happened in 2012, 2015, meaning in 3-5 year cycle. So in 30 years it happens 6-8 times. Jesus Christ! You'll pay × 5. Screwing dry.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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whiteowl
#533 Posted : Wednesday, October 21, 2015 1:26:48 AM
Rank: Veteran

Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
MaichBlack wrote:
A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.

Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!

That is how fast you can get screwed!!!


No amount of cooking results will save the NPLs coming up.Banking sector will crash and burn.
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Mike Ock
#534 Posted : Wednesday, October 21, 2015 1:33:54 AM
Rank: Member

Joined: 1/22/2015
Posts: 682
MaichBlack wrote:
A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.

Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!

That is how fast you can get screwed!!!


I view this as more of a failure of modern society. The city dwelling human is the only creature on this planet that slaves away for decades to do the most basic thing of building a home for himself. In rural areas and in the animal kingdom, that is a one week process and you move on! There are some areas where this so called progress of civilization has really failed humans, but what can you do... accept and move on I guess?
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murchr
#535 Posted : Wednesday, October 21, 2015 4:33:54 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Boris Boyka
#536 Posted : Wednesday, October 21, 2015 5:16:11 AM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
murchr wrote:
Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly

NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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murchr
#537 Posted : Wednesday, October 21, 2015 5:56:38 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Boris Boyka wrote:
murchr wrote:
Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly

NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars.


Unless you are in these group of Kenyans you need not a 30M loan
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Boris Boyka
#538 Posted : Wednesday, October 21, 2015 6:54:15 AM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
murchr wrote:
Boris Boyka wrote:
murchr wrote:
Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly

NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars.


Unless you are in these group of Kenyans you need not a 30M loan

Yes. @murchr by the way Fixed rate is worst. Don't even think of it Shame on you Shame on you Shame on you
For example for same loan amount paid in same period, 8% fixed rate (straight line) = 16% reducing balance in terms of monthly payments and total interest paid.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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murchr
#539 Posted : Wednesday, October 21, 2015 7:11:13 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Boris Boyka wrote:
murchr wrote:
Boris Boyka wrote:
murchr wrote:
Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly

NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars.


Unless you are in these group of Kenyans you need not a 30M loan

Yes. @murchr by the way Fixed rate is worst. Don't even think of it Shame on you Shame on you Shame on you
For example for same loan amount paid in same period, 8% fixed rate (straight line) = 16% reducing balance in terms of monthly payments and total interest paid.


Id rather a fixed rate, floating risk is not interesting
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Sevian
#540 Posted : Wednesday, October 21, 2015 7:14:39 AM
Rank: New-farer

Joined: 4/8/2015
Posts: 42
I know someone who got an email from Stanchart notifying them of the increase of mortgage rates from 10.3 to 14.5%. They are paying 40% extra since. Hii mbiashara ya mortgage ni upuuus. How do you expect someone to cough an extra 40k (assuming they were paying 100k).
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