Interest rate<\/b><\/p>\n<\/td>\n
Discount points<\/p>\n<\/td>\n
0<\/p>\n<\/td>\n
1.5<\/p>\n<\/td>\n
3<\/p>\n<\/td>\n<\/tr>\n
Points and fees<\/p>\n<\/td>\n
APR<\/p>\n<\/td>\n
4.619%<\/p>\n<\/td>\n
4.492%<\/p>\n<\/td>\n
Monthly payment<\/p>\n<\/td>\n
\u20a623,880<\/p>\n<\/td>\n<\/tr>\n
All costs, 3 years<\/p>\n<\/td>\n
\u20a61,079,680<\/p>\n<\/td>\n<\/tr>\n
All costs, 10 years<\/p>\n<\/td>\n
\u20a63,085,600<\/p>\n<\/td>\n<\/tr>\n
\u20a68,816,800<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
After 3 years, the loans with the lower APR are more expensive than that with a high APR, showing that a lower APR doesn\u2019t necessarily mean a cheaper loan depending on the tenure of your loan, the size of the loan and how the APR is formatted.<\/p>\n
CHECK OUT:<\/strong>\u00a0PROPERTIES FOR SALE IN ABUJA<\/a><\/strong><\/p>\n It’s bad enough GTB is charging you obscene amounts for \u201cCard maintenance\u201d but when banks make home loans, the extra fees can go through the roof — often to the point of being illegal.<\/p>\n Lenders are required to give you a good-faith estimate of your closing costs when you hand in your application, and extra charges are a violation of the law. But some banks try to sneak them in anyway. Banks tend to be very creative when it comes to fees.”<\/p>\n Always ask for a detailed, itemized list of your estimated closing costs when you hand in your loan application. It’s required by law. Then on closing day look carefully at the figure called “amount financed” on your settlement papers. If it does not equal the principal you are borrowing, minus any points or interest paid upfront, ask your loan officer why. It could mean he slipped some fees into the amount financed and you can guess what that means: You’ll pay interest on those charges.<\/p>\n (Courtesy: modernfsbo<\/em>)<\/p>\n The chances that your bank will go under are slim, but it does happen. Nigerian banks have a long history of going under so this isn\u2019t too far fetched. Get a mortgage from those who have stood the test of time lest the mortgage institution is liquidated and you become stranded. Here\u2019s<\/a> a recommendation from us which includes mortgage banks that have been around for long enough with good end-of-the-year numbers.<\/p>\n Many homeowners pay down their principal early, bit by bit. It’s a great way to reduce your interest payments over time. But often those extra payments will sit in an escrow account — and won’t be credited toward your principal — because your lender doesn’t know what to do with them. Why aren’t lenders on the ball? It confuses payment schedules, for one thing. But lenders also make money on the interest you pay — income that’s eliminated when you prepay your principal. Ensure your mortgage bank does the right thing when you make a prepayment.<\/p>\n <\/p>\n Mortgages in Nigeria are clearly not for everyone at the moment and may prove hard to manage. Renting an apartment which only requires an annual payment until you can comfortably afford a mortgage is a smart move if you don\u2019t yet have the required funding to build your dream home<\/a> or buy an apartment<\/a> outright. Renting an apartment even in the extra crowded Lagos<\/a> is now easier than ever though with a platform like ToLet.com.ng<\/a>. You also have the option building your own house from scratch which does not require you to make any more contributions than you are capable of. This means you may halt the building process at any point in time if you no longer have the financial wherewithal to continue.<\/p>\n ALSO READ:<\/strong> 6 Steps to Getting a Successful Mortgage in Nigeria<\/strong><\/a><\/p>\n“We never met a fee we didn’t like.”<\/b><\/h2>\n
![\"closing-costs\"](\"https:\/\/www.propertypro.ng\/blog\/wp-content\/uploads\/2016\/10\/closing-costs.jpg\")
<\/a><\/p>\n“You should worry about our finances too.”<\/b><\/h2>\n
“What happened to your prepayments? Can’t be sure.”<\/b><\/h2>\n