bank charging 3% to pay off loan

Kenr · Post by **Kenr** » Wed Feb 21, 2024 3:25 pm

Then that 3% sounds a little steep.

Bongmab69 · Post by **Bongmab69** » Wed Feb 21, 2024 3:29 pm

Put the money you got from the land on the bank and probably you get more then 3% for it, and you just keep on paying the bank-loan, without losing anything, then you "scam the scammers" if you look to it as a a scam . . .

Kammekor · Post by **Kammekor** » Wed Feb 21, 2024 3:44 pm

phuketrichard wrote: ↑Wed Feb 21, 2024 11:19 am has anyone come across this
we are selling a piece of land we brought and had borrowed form the bank some $$
the loan is 3 years Old
wife has told me the bank is charging us 3% more to pay it off
is this for real?
what a SCAM

This is extremely common. Most long term loans will have conditions like this, unless it's a very flexible one. Usually they will allow you to pay off a maximum extra percentage of the original loan-sum per year (5% for instance) without any penalties but they will charge you a penalty for missed income if you pay off more. Info will be in the fineprint of the contract.

phuketrichard · Post by **phuketrichard** » Wed Feb 21, 2024 5:41 pm

Bongmab69 wrote: ↑Wed Feb 21, 2024 3:29 pm Put the money you got from the land on the bank and probably you get more then 3% for it, and you just keep on paying the bank-loan, without losing anything, then you "scam the scammers" if you look to it as a a scam . . .

that is NOT a good idea
interest rate is 10% on the loan<
interest rate on savings is , what about 6-7.5%?

.... Info will be in the fineprint of the contract.

yea, i never even saw the contract as wife's sister got the loan for us while we were still in Phuket
big Mistake!!

Kenr · Post by **Kenr** » Wed Feb 21, 2024 5:49 pm

Question for the OP.

Would paying the 3% to pay the loan off early cause you to pay more than if you kept the land and continued to make payments for the next 1 1/2 years?

newkidontheblock · Post by **newkidontheblock** » Wed Feb 21, 2024 7:35 pm

All depends on the loan terms and length.

In the US, 20-30 year fixed loans on a home (and land) is common.

Paying off the loan in 5 years or less robs a bank of the compounded interest rate on that loan, hence the tacking on the 3% charge. And yes, loans are loaded with interest payments at the start of the loan.

But on average, paying off a loan early is still cheaper than paying the loan off over time. Most just can’t afford to do so. (Me included).

phuketrichard · Post by **phuketrichard** » Wed Feb 21, 2024 8:24 pm

Kenr wrote: ↑Wed Feb 21, 2024 5:49 pm Question for the OP.

Would paying the 3% to pay the loan off early cause you to pay more than if you kept the land and continued to make payments for the next 1 1/2 years?

LESS
if its only 3% of the balance ( $6,750) $202
to keep paying off the loan, interest would be about $525

the land we are selling is another piece that we dont really need, ( at least i dont) the loan is for the land we built the house on which we are keeping.

YaTingPom · Post by **YaTingPom** » Thu Feb 22, 2024 8:04 am

phuketrichard wrote: ↑Wed Feb 21, 2024 8:24 pm
Kenr wrote: ↑Wed Feb 21, 2024 5:49 pm Question for the OP.

Would paying the 3% to pay the loan off early cause you to pay more than if you kept the land and continued to make payments for the next 1 1/2 years?
LESS
if its only 3% of the balance ( $6,750) $202
to keep paying off the loan, interest would be about $525

the land we are selling is another piece that we dont really need, ( at least i dont) the loan is for the land we built the house on which we are keeping.

Without sounding like a smart arse; why didn't you just sell the land in the first place to build the house?

phuketrichard · Post by **phuketrichard** » Thu Feb 22, 2024 10:23 am

YaTingPom wrote: ↑Thu Feb 22, 2024 8:04 am
phuketrichard wrote: ↑Wed Feb 21, 2024 8:24 pm
Kenr wrote: ↑Wed Feb 21, 2024 5:49 pm Question for the OP.

Would paying the 3% to pay the loan off early cause you to pay more than if you kept the land and continued to make payments for the next 1 1/2 years?
LESS
if its only 3% of the balance ( $6,750) $202
to keep paying off the loan, interest would be about $525

the land we are selling is another piece that we dont really need, ( at least i dont) the loan is for the land we built the house on which we are keeping.
Without sounding like a smart arse; why didn't you just sell the land in the first place to build the house?

well seems u have it in for me with ur constant picking on my posts without knowing anything about me
but since i am a better person, I'll respond

Land in Svay Rieng is not nearly worth what land in Kep is

YaTingPom · Post by **YaTingPom** » Thu Feb 22, 2024 10:54 am

phuketrichard wrote: ↑Thu Feb 22, 2024 10:23 am
YaTingPom wrote: ↑Thu Feb 22, 2024 8:04 am
phuketrichard wrote: ↑Wed Feb 21, 2024 8:24 pm
Kenr wrote: ↑Wed Feb 21, 2024 5:49 pm Question for the OP.

Would paying the 3% to pay the loan off early cause you to pay more than if you kept the land and continued to make payments for the next 1 1/2 years?
LESS
if its only 3% of the balance ( $6,750) $202
to keep paying off the loan, interest would be about $525

the land we are selling is another piece that we dont really need, ( at least i dont) the loan is for the land we built the house on which we are keeping.
Without sounding like a smart arse; why didn't you just sell the land in the first place to build the house?
well seems u have it in for me with ur constant picking on my posts without knowing anything about me
but since i am a better person, I'll respond

Land in Svay Rieng is not nearly worth what land in Kep is

How is my question picking on you, it was a genuine question? Just curious.

Amusing you say I know nothing about you then you claim you are a better person than me, without even knowing anything about me! Bravo.

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