30 Years mortgage with 90% financing!!!

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
The Asociacion Popular de Ahorros y Prestamos (APAP) "People's Association Savings and Loan" announced financing of 90% of the value of homes with up to a term of 30 years to pay. Mortgage facilities include in addition, optional life insurance and financing of closing costs.

According to the banking institution, these conditions position APAP as the entity in the forefront of the financial system with greater benefits in the mortgage product, reaffirming its leadership in the sector.

As an example a memorandum of the institution explained that: "A family that wishes to acquire a home of RD $ 1.5 million pesos, will only have to make a down payment of RD $ 150,000 to qualify for a loan with monthly payments of RD $ 16,000 pesos. "

He explained that APAP extended mortgage facilities for more families to buy their own home. "You put 10% and the rest is on us, is how APAP massively communicate the offer to its mortgage potential customers.

APAP assets amounted in 2010 to RD $ 35.09 billion, a growth of RD $ 6.09 billion, up 21% this past year.

The deposits were RD $ 26.4 Billion for an increase of RD $ 5.2 Billion equivalent to an increase of 24%.

=============================================================


Now you know why Dominicans buy cash on hand, rather than get financing from a bank...
 

SKing

Silver
Nov 22, 2007
3,750
183
63
The Asociacion Popular de Ahorros y Prestamos (APAP) "People's Association Savings and Loan" announced financing of 90% of the value of homes with up to a term of 30 years to pay. Mortgage facilities include in addition, optional life insurance and financing of closing costs.

According to the banking institution, these conditions position APAP as the entity in the forefront of the financial system with greater benefits in the mortgage product, reaffirming its leadership in the sector.

As an example a memorandum of the institution explained that: "A family that wishes to acquire a home of RD $ 1.5 million pesos, will only have to make a down payment of RD $ 150,000 to qualify for a loan with monthly payments of RD $ 16,000 pesos. "

He explained that APAP extended mortgage facilities for more families to buy their own home. "You put 10% and the rest is on us, is how APAP massively communicate the offer to its mortgage potential customers.

APAP assets amounted in 2010 to RD $ 35.09 billion, a growth of RD $ 6.09 billion, up 21% this past year.

The deposits were RD $ 26.4 Billion for an increase of RD $ 5.2 Billion equivalent to an increase of 24%.

=============================================================


Now you know why Dominicans buy cash on hand, rather than get financing from a bank...
Wow...that's crazy......Cash rules

SHALENA
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
I am sorry.. I do not get it,, What is wrong with a 30 year fixed rate mortgage with 90% financing? Seems an upgrade from the one year fixed rate then sky's the limit.
I doubt it's afixed rate. I suspect the RD$16,000 is a teaser.
 

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
I bought a house in 2006 and talked with all the major banks and eventually settled with a cooperative. In my research I spoke with many loan officers and even management types and was told consistently that the rates were "fixed". However, upon requesting clarification about supposed fixed rates, "tasa fija", I was basically told that the rates were fixed until the bank decides to change them. I asked why is that the case and they explained that it is derived by the exchange rate with the dollar. I then politely explained that they weren't really fixed rates whereupon most disagreed with me. I doubt it has changed - therefore, buyer beware.
 

bri777

Bronze
Sep 11, 2010
1,008
19
38
yipee for 4 1/4 trying to get a 2 1/2
the only way to combat the bad economy for individuals

cash is king in dr ,I cant see paying 3 or 4 times the value of house
Manu
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
936
113
I don't see anything wrong with this? Getting a loan at a fixed rate is alway's on a higher interest foot.
It's not fixed. Nothing in the article says it's fixed.

And it starts at 14%.

No loan in the DR is fixed except the 2.5-3% a month loans.
 

Acira

Silver
Sep 20, 2009
2,510
115
0
www.blazingfuries.com
It does not say if it fixed or not fixed so I leave that in between for those who are interested in it and go to the bank and ask for the extensive explanation. Even then, this is a system that can be interesting for people because lets suppose its fixed at 14%...if you calculate over ten years with an inflation of 6% (am I being optimistic :), you end up with a flat rate of 8% and the sales price or market price of your house has almost doubled.
 

jrjrth

Bronze
Mar 24, 2011
782
1
0
I remember 18% in '80.

Like with all things in life..."Caveat emptor"..if its too good to be true it is, however at least there is a product in their market place that offers an option for them to buy their own homes...incentive or not???

Plus now APR's in US are creapin up 4.25%+ 30year fixed 20% down and major headaches and time to get approved and not to mention the credit card APR's have criminally skyrocketed into the high 27+% ranges...

I too remember the late 80's I was one paying 10.5% on my first house....ouchy...
 

kimbjorkland

New member
Apr 6, 2011
404
0
0
I don't think this is 'ouch', this is good news for locals - at least it seems to be for the people in my family that I polled. For example, one of my brother-in-law's recently bought his first car ever. His interest rate was 31%. Ouch. But high interest seems to be normal here no?? The fact that they can even get a 90% mortgage seems like good news to people.