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suhri1304
Joined: 18 Sep 2005
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 Posted: Sun Apr 20, 2008 9:52 pm Post subject: mortgage payments? how does it work here? |
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I'm planning on buying a small apartment and getting a 100 million won loan from a bank (I'm going to get married to a Korean woman). I asked a Korean friend of mine and she told me that the interest alone is 800 thousand won a month and that it doesn't change, no matter how much you pay into the principle.
For example, the amount of interest I am paying is the same at the beginning when I first pay for the loan and at the very end, when I finished paying off the loan. Does anyone know if that is true and better yet, how exactly do mortgages work in this country? |
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LostinKSpace
Joined: 17 Feb 2008
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| Posted: Sun Apr 20, 2008 11:16 pm Post subject: |
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| I have a mortgage and pay a fixed monthly rate it was part of the agreement that we couldn't pay more, so we save money in a different account which we can pay into our mortgage as a lump sum at the end of the year. If I remember correctly I am able to deposit a lump sum once per year and this obviously reduces the interest payments, after 5 years I think we can pay what we want. Sorry if this is a bit vague but that is the deal my wife brokered and it seems fairly standard in Korea. |
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Paddycakes
Joined: 05 May 2003
Location: Seoul
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| Posted: Sun Apr 20, 2008 11:32 pm Post subject: |
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| If you're high income and plan to pay off your debt very fast, consider a Line of Credit. It's called 'minus' in Korean. |
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suhri1304
Joined: 18 Sep 2005
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| Posted: Mon Apr 21, 2008 5:47 am Post subject: |
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| LostinKSpace wrote: |
| I have a mortgage and pay a fixed monthly rate it was part of the agreement that we couldn't pay more, so we save money in a different account which we can pay into our mortgage as a lump sum at the end of the year. If I remember correctly I am able to deposit a lump sum once per year and this obviously reduces the interest payments, after 5 years I think we can pay what we want. Sorry if this is a bit vague but that is the deal my wife brokered and it seems fairly standard in Korea. |
thanks, this helps a lot! I was also wondering what the interest rate on mortgages currently is? I read somewhere that they go up to 8 percent these days!? |
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Jimskins
Joined: 07 Nov 2007
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| Posted: Mon Apr 21, 2008 5:56 am Post subject: |
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In the current world market I wouldn't touch property at the moment.
"The property ladder has become the property snake." 
Go with Jonsei instead. |
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marlow
Joined: 06 Feb 2005
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| Posted: Mon Apr 21, 2008 4:28 pm Post subject: |
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| Jimskins wrote: |
In the current world market I wouldn't touch property at the moment.
"The property ladder has become the property snake."
Go with Jonsei instead. |
I'd agree. You'll probably lose 40% of your investment in the next five years. Plus, if you're planning on getting a mortgage, I hope your wife has a good job, because banks are real pricks about giving them to foreigners. |
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Mon Apr 21, 2008 5:01 pm Post subject: |
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| suhri1304 wrote: |
| LostinKSpace wrote: |
| I have a mortgage and pay a fixed monthly rate it was part of the agreement that we couldn't pay more, so we save money in a different account which we can pay into our mortgage as a lump sum at the end of the year. If I remember correctly I am able to deposit a lump sum once per year and this obviously reduces the interest payments, after 5 years I think we can pay what we want. Sorry if this is a bit vague but that is the deal my wife brokered and it seems fairly standard in Korea. |
thanks, this helps a lot! I was also wondering what the interest rate on mortgages currently is? I read somewhere that they go up to 8 percent these days!? |
Yeah, they jumped a few months back. |
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Typhoon
Joined: 29 May 2007
Location: Daejeon
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| Posted: Mon Apr 21, 2008 6:26 pm Post subject: |
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| marlow wrote: |
| Jimskins wrote: |
In the current world market I wouldn't touch property at the moment.
"The property ladder has become the property snake."
Go with Jonsei instead. |
I'd agree. You'll probably lose 40% of your investment in the next five years. Plus, if you're planning on getting a mortgage, I hope your wife has a good job, because banks are real pricks about giving them to foreigners. |
Your wife will have to have a good job in my experience. My wife is a stay at home mom and I was laughed out of several banks when talking about mortgages. Now, this was several years ago now so keep that in mind. They would not give me a mortgage because I was a foreigner and they would not give it to us in my wife's name because she was a stay at home mom and therefore had no income. Very frustrating.
As for the jonsei I have to say I agree. These days fewer and fewer home owners want to do jonsei because they can make way more money do waulsei. If you can jonsei do it. Investing in land is very risking unless you are buying a devalued property. To find these contact a lawyer. Houses that have been foreclosed on are still great investments. |
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