Financing a house

Pib

Goddess
Jan 1, 2002
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It depends on how much the down-payment is, interest and how long you will be paying. But you knew that, I am sure. The point is that banks request at least 40% down-payment and the maximun lenght is 20 to 15 yrs depending on the bank. An absolutely WAG, with the minimun down-payment (meaning you take on a mortgage for the remaining 60% for 15 yrs) would be around 30,000 pesos. Give me more details and I'll see if I can find the exact number.
 

sweetdbt

Bronze
Sep 17, 2004
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0
another option

:p
Pib said:
It depends on how much the down-payment is, interest and how long you will be paying. But you knew that, I am sure. The point is that banks request at least 40% down-payment and the maximun lenght is 20 to 15 yrs depending on the bank. An absolutely WAG, with the minimun down-payment (meaning you take on a mortgage for the remaining 60% for 15 yrs) would be around 30,000 pesos. Give me more details and I'll see if I can find the exact number.

Take that 40% down payment and leave it in a peso account at 25% interest and in 5 years you will have enough to pay cash for the house! Of course that's if you don't pay any more in.
 
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Barnabe

Member
Dec 20, 2002
507
0
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Amount 3 000 000 DOP
Annual rate 35%
Payment : monthly


Payment/month
135 708 DOP 3yrs
106 471 DOP 5yrs
93 413 DOP 8yrs
88 916 DOP 12 yrs
87 998 DOP 15 yrs

Excel results

Barnab?
 

sweetdbt

Bronze
Sep 17, 2004
1,574
70
0
wow!

Barnabe said:
Amount 3 000 000 DOP
Annual rate 35%
Payment : monthly


Payment/month
135 708 DOP 3yrs
106 471 DOP 5yrs
93 413 DOP 8yrs
88 916 DOP 12 yrs
87 998 DOP 15 yrs

Excel results

Barnab?

I knew it would be high but it's still startling to see the figures. Actually the OP was asking about a 3,000,000RD house, which means that after the required 40% down payment you would be financing 1,800,000. The payments on that for 15 years would "only" be about 53,000RD/mth. If (unlike me) you could actually afford that (and had the 1,200,000RD down payment), you'd still be a candidate for the looney bin to do it. I'd guess that you could rent VERY NICE temporary accomodations for half that much or less. Those more familiar with that end of the rental market may wish to comment. If you deposited the difference each month, along with the down payment $ at 25%, you would have RD3,000,000 in a little over 2 years. Then pay cash for a house, and save MILLIONS of pesos over the next 12 or 13 years. ;)


Total interest on the 1.8million loan over 15 years would be 7.7 million!

Bottom line is it's hard to imagine a scenario in which it would make sense to finance a house with the financial realities of the DR. Can anyone think of one?
 
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solituna

New member
Jan 26, 2004
213
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0
More info

sweetdbt said:
:p

Take that 40% down payment and leave it in a peso account at 25% interest and in 5 years you will have enough to pay cash for the house! Of course that's if you don't pay any more in.

I have heard a lot about these high interest accounts. Would you please be so kind to help out by providing more details?

Thanks!

Solituna
 

MrMike

Silver
Mar 2, 2003
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Yeah I'm renting a house which is on the market at 6 million (though I suspect is is worth maybe 4 tops) for 10,000 pesos a month. A small fraction of wehat it would cost to buy the same house, assuming I wanted it. (I don't, the neighbors are too noisy)

But to answer the poster who wanted more info on the high interest accounts, these are at the Banco Central, and there is a daily limit to new accounts they will open, I hear of people going days in advance to take a number and lining up at 3 a.m. , And considering the behaviour of banks in this country of late I would consider it a pretty high risk investment.
 

sweetdbt

Bronze
Sep 17, 2004
1,574
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lots of places!

solituna said:
I have heard a lot about these high interest accounts. Would you please be so kind to help out by providing more details?

Thanks!

Solituna

MrMike gave one example (Banco Central), but the fact is that interest rates on peso accounts throughout the DR are in that range, both at banks and with private investment companies. Anoeca investments (listed in the directory here) is another option. Alberto is currently paying 25% on a minimum of US$5000, which would be about 160,000Rd at todays rate.