Rank: Member Joined: 2/18/2011 Posts: 448
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enyands wrote:mibbz wrote:Mseto binti wrote:MaichBlack wrote:dunkang wrote:TPK wrote:I took a Kshs 7 Million 15 year plot purchase and construction loan from Kuscco Housing Fund in Jan 2010 at a fixed interest rate of 14% and constructed a 4 br maisonette+SQ within 12 kms of CBD. I was not going to sit and wait for the loan to run the full tenor as I was scared of the interest payments, so I had to make lumpsum prepayments of whatever amounts even 100k.
I just cleared it last month and in total, I have paid slightly over 10 m over the 6 year period. The current selling price of the house is about 14 M. Who says a mortage does not make sense? Just ensure you look for the right financier who will not hike rates any howly and ensure you prepay as much as you can.  So, Interest rate is 14% p.a. Principal is KShs. 7,000,000.00 and repayment period is 15 years (or 180 months). From simple calculation, you are supposed to pay KShs. 93,221.90 every month for 15 years. When you pay "LUMP SUMS" of KShs. 100,000.00 monthly, you are actually doing nothing. Very sad @dunkang. This guy is lying to us in broad daylight. For a 7,000,000 loan at a fixed rate of 14%, even if he was paying 100,000 from month one without fail, it would take 12 years to complete the loan. And he is talking about 6 years?? Half the time??? @TPK - If you are trying to prove a fact, don't use lies. Use facts and actual figures. Throwing around figures and the underestimating the payment period by half is not even remotely forgivable. Ile kitu wazuans wanajua sana ni hesabu!!! Kwanza hesabu za pesa!!! @ Maich black unajua hesabu...nice I need help kuelewa hesabu za maloan! am wondering about my own hesabu in regard to a loan am servicing..tafadhali saidia...(munduzcatgmail.com   @Maich et al, TPK gave his real experience. KUSCO gives a Ksh 7 Million loan at 14% p.a resulting in monthly payment of 93,222. You also get the 7 million based on a multiple of 5 times your savings meaning TPK already had approximately 1.4 Million in cash with KUSCO which also earns an annual dividend (5-10%) over the 6 years. Links below on SOP of the loan and pricing. http://www.kuscco.com/in...php/kuscco-housing-fund
http://www.kuscco.com/in...php/kuscco-housing-fund
While he was non specific on how many lumpsum payments he made over the six years period( I choose to look at the 100K lumpsum payment as just one example),it is quite possible he paid it all in 6 years as follows: 93,222 per month for 6 YEARS = 6,711,984Using of cash deposit to settle balance= 1,400,00Lumpsum (extra) payments amounting to = 1,888,016 in 6 years or 314,670 per annum over the six years or 26,223 extra per month over the 6 years (72 months) he took to clear the loan. PS: I have not included earnings from dividends from the Ksh 1.4 Million saved which would be at least 70k p.a for each of the 6 years (420K in total) All these are assumptions but TPK demonstrated he did this practically although he chose not to give specifics on the payments. TPK i salute you for sharing your story on an efficient and smart way to overcome the crazy interest rates and get value for money. Your math is off sir .check highlighted and reverse please 93222x6 should be 559,332 I don't know where you got 6m Apologies.It is 6 YEARS. I shall edit the post and correct it. Thanks
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