You are going to buy a yard at Marina Bay. The price of the yard is RM120,000. You are going to pay 10% down payment. You have two options to finance your purchase: Option1 : Borrow from Bank A 10 year loan at 12% interest rate. The loan will be paid in 30 equal payment. Option 2: Borrow from Bank B 20 year loan at 10% interest rate. The loan will be paid in 40 equal payment. Which bank gives better offer?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
You are going to buy a yard at Marina Bay. The price of the yard is RM120,000. You are going to pay 10% down payment. You have two options to finance your purchase:
Option1 : Borrow from Bank A
10 year loan at 12% interest rate. The loan will be paid in 30 equal payment.
Option 2: Borrow from Bank B
20 year loan at 10% interest rate. The loan will be paid in 40 equal payment.
Which bank gives better offer?
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