Help with understanding Thai Mortgages

[yankee99]

Went to the government bank inquiring about a mortgage. They gave me the flyer explaining the years 1-5 teaser rates then 6-20 year rate. 

 

They said theres no service fees except land survey (valuation) and land office. 

 

I asked to see a amortization schedule but couldn't get one which brings me here. 

 

I know on car loans interest is calculated on the original loan amount year after year.  Are home loans calculated on the principal balance or some up front interest rates? 

[tonray]

There will be an amort schedule. It's no different from a rate adjustable mortgage anywhere else. GF has teaser rate for 4 years then increases...but everything is outlined in schedule as to portion of interest and principal each pmt.

[yankee99]

26 minutes ago, tonray said:

There will be an amort schedule. It's no different from a rate adjustable mortgage anywhere else. GF has teaser rate for 4 years then increases...but everything is outlined in schedule as to portion of interest and principal each pmt.

So in theory if there are no prepayment penalties it would be advantageous to refinance every 5 years to take advantage of teaser rates? 

[tonray]

3 minutes ago, yankee99 said:

So in theory if there are no prepayment penalties it would be advantageous to refinance every 5 years to take advantage of teaser rates? 

Actually there may be prepayment penalties..but only during the teaser period after which you are free to refinance...but keeping in mind you may not get teaser rates for a refi. In theory, if real rates go down during the first 4 years then refinance may be worth doing, if not likely not going to keep getting new loans at teaser rates....also simply because Thai banks put a loan term limit on home loans, the length of the loan plus your age must not be over 60. So if you get a 20 year mortgage at age 40, then 4 years later you are likely only going to be approved for a 16 year loan. Each bank is a bit different too....we looked at pretty much all and the best deal at the time was Thanachart (now TTB)...but some loans were very different from the others.