The appraisal value of the house seems to have an effect on the number of loans on the mortgage program provided by the Bank. The better home mortgage loans appraisal value, the greater the number of loans from the bank. Generally banks can only provide loans / ceilings of 60-70% of the home appraisal value. Then the rest of course must be paid by the buyer. Of course it is natural if everyone wants the appraisal value of the house he wants high, when taking care of the mortgage. The higher appraisal value will be got the greater possibility of getting a higher ceiling. But worryingly, in some cases the value of the appraisal can fall greatly due to several factors.
Tips to Increase the Appraisal Value of Your Home
If your house is built or located in a disaster-prone area, then your appraisal value can deteriorate. The bank wants collateral that is vulnerable to damage so it can last for a long time. Not surprisingly, if these reasons make the Bank reject the application for a mortgage or even lower the appraisal value. In addition, the cause of the mortgage loan value is low because it is in a limited area. Then another reason that can cause the appraisal value is too low is the house is close to the garbage disposal, too close to the river and too narrow to live in. Then how do you increase the appraisal value at home? The following tips you need to do.
- Renovate the house
One of the reasons for the low appraisal value is the narrow housing conditions. So to overcome this, you need to do renovations first. If the house is decent and comfortable to live in for a long time, the bank will not hesitate to give high appraisal value. No need to do excessive renovation. Just simply rearranging furniture at home, painting walls and adding attractive decorations, the house will look comfortable.
- Change the data on the permit to build a House in accordance with renovations
After renovating, don't forget to change the house data on the IMB or Permit to Build a House. This needs to be done especially if you are expanding the size of a building or land. The size of the house from the IMB data will later be examined by the Bank as a reference in providing KPR appraisal. If the size of the house is wider, the appraisal value will also be higher.
- Changing the function of home use
In the appraisal process of a house or building, the calculation method will be the same no matter how the house functions. Even so, there is a tendency for some banks to add value to a building that can make money, for example, as a place of business or a store. The bank certainly looks for a choice of home with a safe guarantee for a long period of time and future investment. Banks often approve houses that also function as own businesses, such as shops. Because there is an assumption that the homeowner will always have additional funds and will not neglect to pay the installments.
- Provide data on the value of selling property around your home as a comparison
If you can provide data on the value of existing property around your home, then there is an opportunity for you to be able to increase the appraisal value of the house. So, it is important for you to be able to collect comparative data from properties around the house as a weapon. You can also ask for help from several trusted institutions.
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Before you submit the KPR, understand the types of rate
Houses are included in basic human needs, so housing is always a priority. House prices must go up every year, because for some people it is very difficult to buy a house in cash. But rest assured, you can still have a house with a mortgage (mortgage). Buying a house with this credit method is very easy. All you have to do is pay the house every month.
Mortgages are loan products provided to home buyers using a financing plan, with the loan amount up to a certain percentage of the price of the house. In Indonesia, KPR standards are usually provided only by banks. But now there are many leasing companies that provide financing from used housing financial institutions.
Costs are usually given to prospective lenders based on the credit history undertaken. If you have paid various items in installments with a good payment history, your chances are certainly greater. The point here is you can certainly get a mortgage from a credit history that is always fulfilled. However, before you apply for a mortgage, first understand the types of interest that are usually used in mortgages
Flat Interest Rates
Flat interest rate is the most commonly used interest rate calculation for several loan products. The amount of monthly installments is the same, and principal payments are the same. Because the interest is calculated by multiplying the interest by the initial loan principal percentage, the monthly interest value will remain the same, so the total monthly principal plus interest will be the same. The principle of fixed interest calculation is that the principal and monthly installments are determined.
Effective Interest Rates
Calculation of actual interest (effective), or sometimes called floating interest rate, is done at the end of each installment period. Loan interest is calculated from the final balance every months, and interest is calculated based on the loan principal. Therefore, monthly interest will vary based on the principal outstanding. This method is considered more equitable than calculating fixed interest, because interest is paid based on the remaining principal, and fixed interest is calculated based on the initial value of the loan principal.
Annuity rates are basically the same as calculating the actual interest rate. The difference is that before the end of the loan period, the total number of monthly installments is always the same and the difference is the composition of the principal installments and the monthly interest rate. The remaining effective interest is the number of monthly principal payments, and the monthly interest rate will decrease.
The first is calculated using a formula to calculate the total amount of monthly installments and interest. Principal installments are achieved by reducing the total monthly interest rate installments. Almost the same as actual interest, this method is also considered more equitable than calculating fixed interest because interest is paid based on the remaining principal of the loan. In addition to the three types of interest rates above, there are still 2 types of loan interest that are used based on the interest use method.
When applying for a mortgage, the bank will send a type of interest, one of which is a fixed rate. The fixed interest method shows that the interest on the loan will remain unchanged for a certain period of time. The advantage of using the fixed interest rate method is that it is easier for customers who send the credit installment payment method. In addition, if market interest conditions or BI interest rates change, loan rates will not be affected.
The purpose of floating interest rates is to make the loan interest amount change according to market interest rates. Some mortgage providers usually provide fixed loan interest at some initial stage, while others float until the loan term is complete. The advantage of using the floating interest rate method is that when market conditions fall, the customer who submits will receive a lower interest rate than the fixed rate. Conversely, customers will also suffer losses, because when market interest rates rise, the interest earned will be greater.
After you understand the 5 types of interest that are commonly used in mortgages. Choose the most favorable interest rates during the mortgage repayment period, so as not to burden you.