housing finance agency the new system has been introduced

More and more, also 2008 is end, but this year it was some kind of year for everyone, probably will be?This year after all, the unprecedented economic insecurity which sends the edge to the sub prime shock is new in memory, is, but don’t you think? perhaps, perhaps, it becomes the commutation point of new age.

Well, story changes, but with the financing system of the financing of housing support mechanism which we have conveyed from the time before, one there was the funny movement.From 2008 October 27th, concerning lease housing loan it means that the “advance repayment restriction system” is introduced.

When this “advance repayment restriction system”, application is selected, fixed period means that advance repayment is restricted, but that much, it is possible to receive somewhat interest favorable treatment.

Until recently, only two of “35 year fixing” and “15 year fixing” by the fact that new line-up joins to the interest classification which cannot be selected, mainly borrowing, it reaches the point where the interest classification which is suited for individual project can be selected.

Because they are the contents which is important influence even in plan of project, this time we would like to explain in detail, concerning this “advance repayment restriction system”.

About “the advance repayment restriction system” introduction of financing of housing support mechanism

First basic all the more it will be in beginning and the empty will enter.first prepayments when performing the, by the terms and conditions of financial institutions penalty you may be imposed.

for example,, 10if you have to borrow at fixed interest rates years, 10before the expiration of a fixed term of years, for example, if you want to repay ahead of schedule, in whole or in part of the debt is related to prepayment penalty will occur.

however, as we reported in a previous article, if you use the housing finance agency, even if you prepay within the period fixed, penalty does not occur in principle. it is one of the benefits we will use the financing mechanism.

now, mechanism of the story here limit system prepayments back to. recently limit system prepayments that is introduced by, apply for a loan when the borrower mechanism, when applying for loans (1) current system there is no limit of prepayments and (2) limit system prepayments you will want to select one of the.

(1) current system there is no limit of prepayments
principle is the handling of the housing finance agency. as mentioned above, because the penalty does not occur even after prepayments, for owners who believe that actively want to do prepayments are the benefits very.

(2) limit system prepayments
in contrast limit system prepayments when you select a, within the time limit for prepayment of all or part of the debt, will be a certain penalty occurs. on the other hand, instead limited by the addition of penalty, the above (1) applicable interest rate will be slightly preferential treatment compared with.

it is interesting to note that, this limit system prepayments is, target is rental housing loan limited to, to the introduction of mortgage is usually not so. so, why limit system prepayments why did is introduced. i asked the person in charge of financing mechanism. then, there was an answer such as:.

lately, it seems that increasingly more than expected in case of loan prepayments in rental housing. depending on the case, in fact10it is a design that many people without having to wait for years to pay off

you have made from the long-term financing at rates as housing finance agency, 10and be repaid in less than a year, will become very difficult situation as the operation of mechanism. we introduced a system limit prepayments, at minimum10full year will be amended so as to suppress the prepayments

but, from that some compromise between the traditional system, impose a prepayment penalty across the board is in difficult situation. preferential interest rates to instead impose a limit on there, introduced a new system. this point, be received for long-term fixed interest loans at low interest rates, i think there is a benefit to the borrower

until the full story did not hear too much, it was many cases of jhf margin is squeezed by early prepayment would be a major factor but also.

in any, limit system prepayments why such a system is how, you need to know more. there, will explain in the next page an overview of the system.

limit system prepayments overview of the

so, we will tell an overview of the system limit prepayments. we would like to know the people who think now is the loan application mechanism, following5point.

limitation period
it is limited prepayments are, has not elapsed from the date of the mortgage loan agreement setting monetary consumption10years.
(note) if you want to prepay after the expiration of a period of time restrictions, prepayment penalty is not required.

prepayment penalty
prepayments of principal5%will be an amount equivalent to the.
of housing finance agencyHPestimates have been included in published. please refer to reference.

1to borrow one hundred million yen5if you prepay in full years after, 450penalty of ten thousand yen strength is going to occur.

time of payment
you will be required to pay a prepayment penalty prepay at the same time as.

prepayment fee
if some of the money to prepay the loan, prepayment fee as well as the current system (5,250yen (fri change the case of installment) or3,150yen (if you shorten the repayment period) ) prepayments must be paid when the.

measure of interest rate loan
for example,, heisei20of year11the reference interest rate, which is based on mon,

limit system prepayments (may apply) (not applicable)
35year fixed 3.27% 3.44%
15year fixed 2.95% 3.10%

but only as a guide, compared with application of the system if there is no limit prepayments, 0.15~0.17%you will receive preferential interest rate. temporarily1assuming billion borrowing, 0.15%but in the year15difference of about ten thousand yen will come out. amount so they can do a simple renovation of the room, difference is not never reckoned.

then you need to come up with a plan for reviewing the long-term business plan.

or more, roughly limit system prepayments was to tell an overview of the, current system and limit system prepayments about what should use either of the, business plan of the borrower, the repayment plan, i think change is coming judgment.

i asked the loan officer the way the mechanism mentioned above, heisei20years11month and12application of the month at a rate, 7~8artifact is assigned limit system prepayments it is said that using the.

also, applicants for, seems to have received low interest rate of immediate. and that said, or may be selected either, it depends on the individual concrete business plan.

limit system prepayments is, prepayments do not think is a more immediate, want to borrow low interest rates as much as possible, you have to meet the needs of how that. on the other hand, current system there is no limit of prepayments is, for those who want to advance the prepayments will be greater benefits to early.

once more, to determine whether either should be selected on a review of your business plan, please, go to the plan to get a loan to.