Offshore Mortgages

[brindlepit]

What is the name of your state? California

Good afternoon. We have a business contact visiting from Singapore. We speak of investments and properites. He showed me that i can refinance my home through a Singapore bank using Lloyds TSB.

Can anyone explain to me, is it possible to secure refinance loans to an off-shore bank? Is there any tax penalties?

Thanks.

 

[HomeGuru]

What is the name of your state? California

Good afternoon. We have a business contact visiting from Singapore. We speak of investments and properites. He showed me that i can refinance my home through a Singapore bank using Lloyds TSB.

Can anyone explain to me, is it possible to secure refinance loans to an off-shore bank? Is there any tax penalties?

Thanks.

**A: no we can't explain it to you. We have no idea what the entire program is about.

 

[nextwife]

Are you referrring to commercial or residential mortages? On a residential mortgage, with all the amazing mortage products that are out there through servicers well versed in the applicable state laws, why would there be any advantage in financing offshore with a servicer of unknown quality and accessability?

Having dealt with tons of mortgage servicers over the years, I can tell you what a pain it is to try to problem solve with a servicer who doesn't have a clue!

 

[brindlepit]

Why off-shore - because Singapore banks offer an at-worst 2.5% APR.

I'm getting contact numbers and will do the research myself, just thought if anyone had ideas.

Thanks.

 

[HomeGuru]

Why off-shore - because Singapore banks offer an at-worst 2.5% APR.

That's why!

**A: No way. That means that the interest they would make is 2% + or -. Now that's hinting of something not right.

 

[nextwife]

This certainly CAN"T be a fixed rate! Sounds like a teaser rate with a big adjustable jump down the road, prepay penalty to get out and lots of back end fees. Or maybe it's a buy down.

 

[amortgageman]

Try HSBC (Hong Kong Singapore Banking Corporation). They are actually the parent company of Household here in the U.S.

Rate sheets only show a 3/1 LIBOR ARM and the margin is 2.25%. Add in the index rate and that is what your APR will be equal to. They may have a neg am option program, but the margin will probably remain the same.

I, of course, could be wrong, because all I do is broker mortgages.

 

[HomeGuru]

I guess the money is all washed up.

 

[nextwife]

I know a mortage guy who calls many of the negative amortization loans "Neutron loans" (remember the Neutron bomb?). They leave the house standing buy kill the owner!

 

[amortgageman]

It's a wicked world. Everyone always wants the lowest rate. Almost like paying the minimum on a credit card balance. Never going to get it paid off.

I really wonder how these people feel when they pay that minimum payment, and then the loan hits that 7.5% increase in loan balance and the laon becomes a full amoritizing loan, without that minimum payment option.

I guess they are good for people that have the control and discipline to make the additional principal payments, but I think there are alot of people out there making that minimum payment, and not even the interest only payment. Kind of scary.

 

[HomeGuru]

Very very scary.