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Characteristics of a good borrower

BDO Money Matters | By Mark B. Aragona for Yahoo! Southeast Asia – Fri, 23Nov2012

How do you know if borrowing money is going to work out for you, especially in the long term? You can’t foresee what unexpected events will happen to you in the next few years, but there are some things you can control: planning your finances and setting up a worthwhile goal. Have a look at these traits of a good borrower and see for yourself how you—or people wanting to borrow from you—stand:

Credit-worthiness. These are traits from the bank or financial institutions point of view and have to do with the applicant’s credit history, their capacity to pay, and in some cases, the value of their collateral. Banks in particular like to lend to people with high net worth, stable incomes, have a good loan payment history, and liquid assets that produce income or value. But if you don’t rate very high on one or more of these aspects, you could possibly balance it off by doing well with another. Start by taking steps towards improving your credit-worthiness.

On the borrower’s side, there may be more desirable traits to have:

Keen money management skills. This includes a solid grasp of one’s cash flow, the ability to live within your means, and the skill of keeping accurate and timely financial records. The last item is invaluable for obtaining a loan, as banks will require not just proof of income, but proof of residence, marriage, ownership of assets, and so on.

A sense of integrity.
The big “I” means you walk your talk: if you borrow a certain sum of money, integrity means paying back the agreed sum on time. Keeping your word is the basis of all financial agreements and is often the most overlooked trait. The lack of integrity is the main reason for a long history of lost wealth and damaged relationships—both business and personal.

A sense of prudence. A good borrower does not bite off more than he can chew. He will only borrow what he can pay and tracks whom he borrowed from. Some borrowers are not done in by the size of their debts, but by the sheer number of them: they get loans from so many sources, juggling money to pay and repay creditors, that they’re overwhelmed by the task of organizing and keeping track of whom they borrowed from and how much they owe. Ideally, one borrows from a single source at a time, and consolidates any other existing debts into a single low-interest one.

Purposeful spending.
Perhaps the best indicator of a successful loan is what you ultimately do with the extra cash: is it going to provide you with greater value, or is it just going to take more money out of your pocket? Thus it’s imperative to be clear with your financial goal: that you are borrowing money to pay for or take care of a valuable asset. This may mean buying a home, a business, perhaps another investment. It may mean investing in people, such as educating yourself or a child.

Of course, credit no-nos include borrowing to gamble—such taking imprudent high-risk investments—or spending on luxuries. These sap your income and will eventually leave you selling off your possessions, or worse, running from debt collectors.

Borrowing isn’t bad if you have a solid purpose, a good grasp of your financial status, and the commitment to honor your agreements. By mastering these qualities, loans become a useful tool.

How to find the right investment for you

By Mark B. Aragona for Yahoo! Southeast Asia | BDO Money Matters – Tue, 23 Apr 2013

Investment has become a hot topic in the Philippines lately due to the plethora of positive economic news: the recent Fitch credit upgrade, the stock market hitting high after high, and the real estate boom. It seems to make perfect sense to start putting your money to work, but how to choose the right investment? With so many financial instruments out there, it’s quite difficult to decide. So before sinking your hard-earned savings into any investment, take a few moments to consider these questions.

What are you investing for?

In the rush to make money, it’s easy to overlook this most basic of steps: thinking up a clear financial goal. Putting your money in any instrument without deciding where you want to go with it is like going on a roadtrip with no destination in mind—you and your money could wind up just about anywhere, and rarely the place you want to be at.

So decide: is your money for emergency funds? Is it savings for a big purchase, like a car or a home? Is it for your children’s future, or your own retirement? Are you building a business? What kind of lifestyle do you want to create for yourself?

Whatever your goal is, it certainly carries a price tag. Take time to determine that amount as it will save you a lot of trouble later on. The clearer you are about what you want, the easier it is to realize it.

How long do you need to invest?

This is a follow-up question to your financial goal: determining your time horizon. Investments may be short-term, medium-term, or long-term. Some investments, like bank deposits, are liquid, meaning they can be converted to cash in short notice. Others, like real estate, require time to make a return. It pays to be clear about what you need. You don’t want to be in a long-term investment if you’ll be needing your money back in a year or two, and short-term investment for a long-term goal may leave you short on cash in the end.

How much risk can you afford?

Understand that there’s no such thing as a risk-free investment. Even bank accounts carry the risk of loss however small, and the risk that your cash’s value may be eroded by inflation. There are both low-risk and high-risk types of investments. The general rule is: high returns equals high risk and low returns provide low risk. It’s always a trade-off of risk-reward. Decide on what you prefer. If you can’t afford to lose your entire capital, it’s not advisable to invest in high-risk investments.

How much will you invest?

Of course, the size of your capital determines what kind of instrument you can choose. Certain kinds of investments, like special deposit accounts, require a minimum amount. The larger your capital, the more options you have to choose from. If you find you’re short on cash, invest in instruments with a smaller requirement and work your way up to the big ticket ones.

What kinds of investments can I choose from?

Here’s are just some examples.

Bank Instruments. These include savings accounts, special deposit accounts, time deposits, and certificates of deposit. The quoted rate depends on how much you can deposit and how long you want to maintain the account. Note that as of this writing, interest rates for bank instruments are trending down.

Bonds. These are promissory notes, essentially loans lent to either the government or corporations. The rate depends on the issuer’s risk rating (their capacity to pay) and the length of the bond’s tenor. Government bonds are seen to be unlikely to default and thus are among the safest investments around.

Stocks. This means investing in shares of a company, making you part-owner of it. You can make a profit by selling shares when their value appreciates. Some stocks also pay out dividends to shareholders whenever the company makes a profit, but this is not guaranteed. Stock prices rise and fall quickly over time and are generally considered risky investments.

Mutual funds, Unit Investment Trust Funds, and Variable Life Insurance funds are sold by investment companies and provide funds that are handled by professional fund managers. Clients pool their money and the fund managers invest them in a basket of bonds, stocks, and other cash instruments. You can have a choice between different mixtures of these funds depending on your risk appetite.

Foreign Exchange.
This means investing in currencies, making a profit with the rise and fall of that currency’s value. Forex markets are usually more volatile than the stock market and carry considerable risk. One should take time to study forex trading before plunging into this market.

Real Estate means buying and holding property (e.g. Land, condominiums, apartments, houses, lots) either for lease or to sell at a profit when the value goes up. A popular investment vehicle, real estate can be highly profitable but usually requires a large amount of capital to start with.

Businesses. You can own a business, buy into a franchise, or be a “silent partner” in either. Your return depends entirely on how profitable the business is, so you’d best be aware of how well the business is being run.

There are many other things to invest in: derivatives, art, jewelry, precious metals, and so on. Ultimately, only you can decide what the best investment is for you. So pick a goal, do your due diligence, diversify, and hopefully—profit!

What’s your preferred investment? Sound off below.

Top 25 Websites in the Philippines and Globally

Created by itsmenorman for EMCPH.NET website use only | January 11, 2014

With the booming of the Internet Social Media sites (such as facebook, twitter and the likes) i think internet nowadays is considered one of the major sources of client’s inquiries to any business in the world. If you own a company and still up to present you don’t have internet business site better think again. There are many IT companies out there (locally and globally) that offer cheap but good quality service like Precious Nicole General Services Inc. For a small cash out investment with the triple double income return.

To give you some information of which of which websites locally and globally tops the lists. Maybe some of you wanna know and curious like me if which or what websites listed to Top 25 Websites in the Philippines and Globally.

Top 25 Philippine Based Websites

Website Rankings Websites
(Phil. Based Only)
Alexa Rankings
Philippines
Alexa Rankings
Global
1 sulit.com.ph 8 1,728
2 abs-cbnnews.com 15 2,388
3 inquirer.net 17 2,334
4 ayosdito.ph 24 5,237
5 lazada.com.ph 28 6,914
6 bpiexpressonline.com 34 8,351
7 unionbankph.com 35 8,449
8 philstar.com 38 5,101
9 interaksyon.com 42 7,235
10 igma.tv 44 4,430
11 jobstreet.com.ph 60 11,059
12 zalora.com.ph 63 17,265
13 ebay.ph 69 11,598
14 globe.com.ph 73 14,238
15 bdo.com.ph 81 15,287
16 pep.ph 87 9,715
17 cebupacificair.com 95 11,552
18 smart.com.ph 97 17,438
19 pinoyexchange.com 100 14,166
20 sunbroadband.ph 107 26,636
21 tipidpc.com 120 22,730
22 istorya.net 129 20,763
23 mb.com.ph 146 14,748
24 iwantv.com.ph 167 31,035
25 sunstar.com.ph 173 16,146
emcph.net (as of 02/02/14) 3,150 858,738
emcph.net (as of 01/11/14) 4,480 1,504,623
Source: alexa.com Website (as of January 11, 2014)

 

Top 25 Websites in the Philippines

Website Rankings Websites Alexa Rankings
Philippines
Alexa Rankings
Global
1 facebook.com 1 2
2 google.com.ph 2 238
3 google.com 3 1
4 youtube.com 4 3
5 yahoo.com 5 4
6 blogspot.com 6 13
7 wikipedia.org 7 6
8 sulit.com.ph 8 1,728
9 twitter.com 9 11
10 wordpress.com 10 18
11 ask.com 11 33
12 tumblr.com 12 26
13 amazon.com 13 8
14 pinterest.com 14 28
15 abs-cbnnews.com 15 2,388
16 neobux.com 16 57
17 inquirer.net 17 2,334
18 linkedin.com 18 12
19 instagram.com 19 41
20 kickass.to 20 100
21 blogger.com 21 50
22 paypal.com 22 40
23 vube.com 23 65
24 ayosdito.ph 24 5,237
25 bing.com 25 23
Source: alexa.com Website (as of January 11, 2014)

 

Top 25 Websites Globally

Website Rankings Websites
Worldwide
Alexa Rankings
Global
Origins
1 google.com 1 us
2 facebook.com 2 us
3 youtube.com 3 us
4 yahoo.com 4 us
5 baidu.com 5 china
6 wikipedia.org 6 us
7 qq.com 7 china
8 taobao.com 8 china
9 amazon.com 9 us
10 live.com 10 us
11 sina.com.cn 11 china
12 twitter.com 12 us
13 hao123.com 13 china
14 linkedin.com 14 us
15 163.com 15 china
16 blogspot.com 16 us
17 google.co.in 17 india
18 weibo.com 18 china
19 tmall.com 19 china
20 wordpress.com 20 us
21 ebay.com 21 us
22 360.cn 22 china
23 yahoo.co.jp 23 japan
24 bing.com 24 us
25 yandex.ru 25 russia
Source: alexa.com Website (as of January 11, 2014)

 

Supporting Information:

Alexa Internet, Inc. – it is a California-based subsidiary company of Amazon.com which provides commercial web traffic data. Founded as an independent company in 1996, Alexa was acquired by Amazon in 1999. Its toolbar collects data on browsing behavior and transmits it to the Alexa website, where it is stored and analyzed, forming the basis for the company’s web traffic reporting. As of 2013, Alexa provides traffic data, global rankings and other information on 30 million websites, and its website is visited by over 8.5 million people monthly. [ source: wikipedia.org ]

 

How To Keep Your Cool Under Pressure

By Mel Sin for Yahoo! Southeast Asia | Sat, 4 May 2013

There are days when you feel your buttons are being pushed way too hard. But the last thing you want to do is detonate in bad language and angry gestures! So here you go – our tips on how you can keep cool in various situations and come out of it smiling (even if you were boiling inside to begin with!).

How to keep cool… with your kids
One for the moms: Like it or not, but kids can have a knack for bringing out the worst in adults. And it may seem easier to just give up and throw in the towel when dealing with a difficult child, or lose your temper, which isn’t exactly ideal.

So how do you keep your cool when your temper is red hot? Try this: Look at the situation in perspective. Your child may have a reason for lashing out or could be having an off day, which is completely normal as we are all entitled. So instead of being angry, take a breather and know that your child doesn’t intend to drive you crazy; he or she just needs a little more attention than before.

The other thing that works? Get goofy! Nothing works like being silly. This provides a great distraction and soon everyone–kid and you included–will forget why you’re angry in the first place. Sing a silly song, dance crazily, or just have a tickle fest. It works all the time.

How to keep your cool… with annoying colleagues
We all have them–annoying colleagues who just say the wrong thing and do the darnest thing to get on our nerves. From not meeting their end of the bargain to simply not knowing when to shut up, we don’t blame you if there are days when you feel like using the tape to seal your colleague’s mouth shut.

Wait, let go of that masking tape and opt out of violence instead. You don’t want to blow up and be known as the “Crazy One” at work. First things first, to remain calm and to keep your composed professional self–breathe. While your first instinct may be to snap back at your colleague, you’re better off stepping back and taking a deep breath instead. This buys you time to stop you from saying something you will regret. If you must, vent to a friend (someone completely out of your working zone) over a cup of coffee. Just being able to let it all out can do wonders to your mood.

Still annoyed? Find your happy place. Whether it is a few minutes on your favorite website or moving on to the next level on Candy Crush, taking time out will distract you from what’s bothering you in the first place, lets you ease your stress, and help you get back to work in a better mood.

How to keep your cool… when fighting with your partner

You’re both raising your voices and tempers are rising. But before that fight with your boyfriend or your husband turns into an all-out argument where you’ll both regret the things that come out from your mouth, try this.

In the article Fighting Happily Ever After by Elizabeth Bernstein from online.wsj.com, Dr. Howard Markman, professor of psychology at the University of Denver as well as co-author of Fighting for Your Marriage, calls it the “speaker-listener technique”. In this technique, Bernstein explains that Dr. Howard suggests  “couples who have adisagreement should call a couple’s meeting, set a time limit of 15 minutes, and discuss the issue at hand. He even suggests flipping a coin to see who gets to speak first.”

After stating your piece, you should then give your partner the chance to speak, explaining one’s position. “A lot of times, all you need is to be listened to,” says Dr. Markman. Through this exercise, the resolution will then become obvious, says the good doctor. If not? It’s time to schedule another meeting.

Remember the few golden rules of fighting: don’t make it personal, stop trying to win all the time, and make sure to listen. You’ll soon realize that the argument was for nothing.

A MUST watch movies this 2014

By Manila Bulletin | Wed, Jan 01, 2014

Movies? Planning what to do with the family on the (long or short) weekends ahead? I think most of us are excited to know what would be the next to watch out for. Here is a list of the new films that are getting released in 2014. 

X-Men: Days of Future Past

X-Men: Days of Future Past

The X-Men films are making a swift comeback this year with the “Days of Future Past” story line. The movie sees a cast from the old and new X-Men. It will feature Hugh Jackman once again as the Wolverine going back in time to join the younger versions of Professor X and Magneto to stop the Sentinel threat. Oh, while at it, a sequel has already been announced, “X-Men: Apocalypse”. Maybe all that time-travel will just really mess things up even more?

Captain America: The Winter Soldier

Captain America: The Winter Soldier

The movie is set two years after The Avengers, with Steve Rogers trying to adapt to the modern society. The movie will feature the Winter Soldier and which the Falcon – the first ever African-American superhero. If you’re not that interested in the movie yet, well, Natasha Romanoff, a.k.a Scarlett Johansson, will still be in it.

The Amazing Spider-Man 2

The Amazing Spider-Man 2

Yes! It’s coming really soon. Some of us are still quite disappointed that Sam Raimi and Toby couldn’t go on, but director Marc Webb showed us a different path to the Spider-Man movies, a bit more closer to Stan Lee’s vision with Gwen Stacy (Emma Stone) involved. The movie is focus on Peter Parker’s balancing on his normal life and his life as Spider-Man, and we might get hints at what really happened to his parents. It will also feature two of Spidey’s popular villains, the Rhino and Electro (played by Jamie Foxx), and their connections to OsCorp.

Transformers: Age of Extinction

Transformers: Age of Extinction

Michael Bay returns to direct the fourth Transformers film, with a whole new cast. No more Shia, and hello Mark Wahlberg! But who cares, Optimus will be in it, plus more Autobots and more Decepticons blowing things up. Yes, as a Michael Bay film we can expect lots and lots of explosions and metal banging. This will make Godzilla’s rampage look like child’s play. And speaking of that, this movie is confirmed to have Grimlock on it, the badass transformer that turns into a T-Rex!

Hunger Games: Mockingjay - Part 1

Hunger Games: Mockingjay – Part 1

The books were meant to be a trilogy and it just seems the movie business is just milking the series, because anyone who have read the books, would surely agree that nothing much really happens in Mockingjay. Well, except of course the all-out war between the rebels and the Capitol. Oh well, so far, the last two movies haven’t disappointed us. Let’s cross our fingers that the next would still be a fantastic thrill ride.

Godzilla

Godzilla

Haven’t seen the trailer yet? Well, better stop reading this and watch it first on Youtube – like now-now… I’ll wait. Done? Doesn’t it look awesome! Forget the first American film that really sucked and think of the classic Japanese Godzilla with uber Pacific Rim graphics. It looks amazing! Definitely every Kaiju fan will adore this. The kids will love this too. Anyone who has a taste of destruction will marvel on this. This would seem to be Godzilla’s reclaim to the throne as the King of Monsters.

The Hobbit: There And Back Again

The Hobbit: There And Back Again

“What have we done?” is probably the most cliché line ever used for massive cliffhangers; but it still has its appeal. The final Hobbit film will be coming out in December finally concluding the new trilogy. Like all concluding movies, this one will contain a classic epic battle. We will most likely see how the “Necromancer” came to power.

Guardians of the Galaxy

Guardians of the Galaxy

Another Marvel Cinematic Universe film. The movie will feature cosmic superheroes from space and the highly speculated Avengers 3’s villain, Thanos, set to appear as a major character. Not only that, Dave Bautista, a.k.a. former WWE superstar, Dave Batista, has deep connections with Thanos.

300: Rise of An Empire

300: Rise of An Empire

The first movie struck us with awe because of its brutality, cinematography, and a barrage of epic moments. We don’t know much details about the movie, except that it may focus on several historical battles (but not necessarily historically accurate) and about Xerxes’ rise as the “God King”. Based on the trailer, it’s an all-out war, and we can agree this won’t be a Citizen Kane, but this would deliver what film was originally intended for: entertainment.

Interstellar

Interstellar

This movie is being directed by Christopher Nolan. Need we say and know more about this film? Seriously though, nothing much is revealed except that it has Anne Hathaway in it and it’s about astronauts traveling into a wormhole. But do we actually need any more details than that? It’s a Nolan film! Nolan happens to be “the man” who gave us three critically acclaimed Batman movies, Inception, and other superb quality movies like Memento, Following, and The Prestige. With those credentials, I’ll take anything this guy throws at me.

Paranormal Activity: The Marked Ones

Paranormal Activity: The Marked Ones

The first Paranormal movie was creepy. The second was downright scary. The third, well some of us may have wished it never existed. But let’s face it, the movies were scary because it lacked background music. It relied on the sound of a single loud bang to startle the audience. Sound reflex, if you will. But this movie is said to be different that will involve dark rituals and whatnots. It has been screened already, just not worldwide release yet, and reception has been most positive. They claime it would “reinvigorate” the movies.

There are other movies coming this year. Special commendations include Sin City: A Dame to Kill For, The Expendables 3 (which has Mel Gibson, Harrison Ford, Antonio Banderas and Blade??? – no, no, we meant Wesley Snipes, as new characters), Maleficent, Muppets Most Wanted, Robocop, Teenage Mutant Ninja Turtles, another Paranormal Acitivity, and Dawn of the Planet of the Apes.


10 Best Ways to Make Money Online

by

As the virtual world becomes viral with more and more homes having access to the internet, it has now become a marketplace where people can earn dough in just a click of a mouse. Selling stuff on E-bay is passé. You just have to remember that you should avoid any get rich quick schemes as they are most likely scams. Just like making money offline, it takes hard work and consistency to make it online.  For 2011 – 2012, there are new ways to learn on how you can make bucks and be the next online millionaire! so let’s see the 10 best ways to make money online.

 

Make Money 10 Best Ways to Make Money Online

 

10. Be the Next YouTube Sensation!

Slide101 e1310753539873 10 Best Ways to Make Money Online

With so many artists being discovered daily online, why can’t it be you? All you have to do is record a song and make a video of yourself while singing. If you have the talent, your dream of instant superstardom is not farfetched. YouTube and other video-sharing sites have the world as its audience, and when you’re discovered, you can be on your way to Hollywood.

 

9. Make Money doing Gigs

Slide91 e1310753588569 10 Best Ways to Make Money Online

Sites like Fiverr.com allow you to make money by doing almost anything! Just sign up for free and create gigs by offering mundane services such as singing a song, teaching a Spanish phrase, teaching how to use Facebook, etc. Each gig will cost you $5 and you will be amazed how easy it is to make money with things that you never imagine anyone paying for it.

 

8. Make and Sell your Own E-book

Slide81 e1310753629959 10 Best Ways to Make Money Online

With the popularity of Kindle and other e-book readers, people are no longer turning to books as reference. If you have the flair for writing fiction and non-fiction books, you can earn more by selling your literary pieces online than having to go through the tedious task of being published. E-books are selling as much as $50 to $100 and they’re even made by unknown authors.

 

7. Be a Virtual Assistant

Slide71 e1310753718566 10 Best Ways to Make Money Online

You will not believe the number of corporate executives who hires virtual assistants. Because they have a lot of things to do but not the time, they need someone to do stuff for them. These may include doing research, finding things, making reservations, doing time-consuming tasks and even making phone calls. You can do this by setting up a free blog or a website where you can offer your services.

 

6. Be Paid to Blog

Slide61 e1310753772969 10 Best Ways to Make Money Online

Because of the rise of so many free blogging platforms, blogging has become more popular. While it was just an avenue for some to air their creative ideas, you can actually earn from it. You can do this by showing ads on your blogs using advertising programs like Google AdSense or by selling affiliate products, or video tutorials.

 

5. Be a Matchmaker

Slide51 e1310753816442 10 Best Ways to Make Money Online

This is not the typical mail order bride or dating services. You can be a matchmaker by running your own virtual marketplace or your own employment agency. You can do this by collecting sites and matching distributors, suppliers and retailers, for example, an equipment manufacturer to smaller components supplier.  You can also earn by matching job seekers and employers. You can refer your friends and if they get hired, you will earn a commission.

 

4. Be an Online Tutor

Slide41 e1310753862955 10 Best Ways to Make Money Online

Online tutoring is becoming more and more in demand, especially for non-English speaking countries. If you have the passion for teaching, this can be one way to earn. Some online teachers even do this at home. You can just set aside a number of hours per week, which is anywhere from 2 hours up daily depending on the service you are going with.

 

3. Directory Submission

Slide31 e1310753900123 10 Best Ways to Make Money Online

While there may be lots of websites or blogs available in the internet, they need traffic to make money. But sometimes, webmasters and bloggers are busy with the other aspects of their sites that they do not have the time to do this. You can offer your services to submit their site to directories for a fee. You can use forums like Digital Point to offer your service to webmasters.

2. Earn Money while Playing Games

Slide21 e1310753945664 10 Best Ways to Make Money Online

The latest buzz among gaming enthusiasts is about the Chinese girl who became the first person to be a millionaire just by exchanging the virtual money she had earned by playing Second Life. Playing games like Farm Gold and Second Life offers virtual money which can be exchange for real cash. Now, that is every player’s dream.

 

1. Earn Money by Buying Virtual Plots

Slide11 e1310754013471 10 Best Ways to Make Money Online

Virtual plots are URL addresses that you can buy and resell for profit, just like any real estate. You can do this by buying good domains, flip them and make some bucks. When you get a good site or a blog, work on it by putting relevant content, get it going, and then sell it. There are hundreds of websites being sold every day on sites like Flippa.com, while sites like GoDaddy.com sells unused domain names for under $10 each. You just have to remember that the best domain names are short, specific and easy to remember. There are website owners who made millions out of buying virtual plots and made them into established sites. This is good business because with just a small capital, you can earn huge profits!

Applying for a loan? The questions you must ask

BDO Money Matters | By Mark B. Aragona for Yahoo! Southeast Asia -Thu, 08Nov2012

So you’ve picked out a car or home and now you’re ready to apply for a loan to finance it. While shopping around for loans can be a long and tedious process, it pays to sift through every detail of the terms before agreeing to anything. After all, you’ll be tying yourself to that debt for the next several years. Here are some vital questions that should come up during your loan negotiations:

What are these charges for?
Understand the first rule of getting a loan: everything is negotiable, and that includes bank fees.  Before signing any documents, go through every detail and pay attention to the charges involved. You need to make sure you are only paying for things you agreed to pay, and nothing else. Some less scrupulous lenders will slip in charges in the paperwork without you knowing. If you see fees that you’ve not agreed to or don’t understand, challenge them at once.

Can we lower the interest rate if I shorten my term/increase my downpayment?
Never assume that lending institutions like banks will automatically lower their rate if you decide to shorten your term from 20 years to 10, or put up more cash for downpayment. When you approach a bank, don’t be afraid to talk to the marketing assistant or loan officer to see how flexible they are or how much they’re willing to personalize your loan. Negotiate for the best rate you can. Even a 1% change now can later on mean the difference between having a roof over your head or camping out in your own car.

May I use my own life insurance?

Nowadays banks require their clients to apply for private mortgage insurance (PMI) or mortgage redemption insurance (MRI). These are life insurance policies where the lender is named the beneficiary, providing them with a safety net in case you’re unable to pay your debts due to illness, disability, or death.

Both the PMI and the MRI carry expensive premiums due to the processing fees and commissions paid to the bank. The insurance benefits and charges of these policies shrink along with your debt, but that also means your family won’t get anything from these policies. Neither are the premiums paid refundable, withdrawable, or loanable. You may not even realize you applied for a PMI or MRI as it could be bundled with your other bank fees.

As such, it’s better to use your own life insurance as collateral for your loan.You can use an existing one or apply for ordinary life insurance from a reputable company. In the event of disability or death, your coverage will only pay the remaining balance of the loan and the rest goes to your family. Moreover, you get to keep the policy and any cash value after the loan is finished.

What are your prepayment/pre-termination fees?
This is something you’ll definitely want to clear up. As per law, you’re allowed to pre-pay or pre-terminate your loan if you have the means to do so, but note that each transaction also carries its own banking fee. How much you’re charged depends on the amount you’re pre-paying, but on average these fees range from P500 to P2,000.

Can I lock in this rate?
Once you have an interest rate you like, DON’T forget to ask this. Interest rates change regularly due to economic policies and even if a bank is willing to give you a low rate, they may not be able to keep it for you if you don’t ask them to lock it in. Also, ask if there’s a commitment fee in order to process this transaction.

What are your closing costs?

Closing costs can range from 2% to 5% of your loan amount. They may include all kinds of miscellaneous processing fees, credit checks and so on. If you spot any inflated or unneccessary fees, you ought to renegotiate them with the lender before you attempt to close the agreement. Check out our guide to closing costs to get an idea on legitimate fees.

Some banks are even willing to waive fees for long-time clients, but they may not do this unless you ask. So ask. Talk to them. And if your bank doesn’t provide rates you like, you can always shop for other banks or try government institutions. If you take confidence and negotiate from a position of strength, you’ll eventually get what you want.

Homemade aircon for Masa

Prenella | PNGSI Inc. – Sat, 10 May 2014

Homemade aircon by PNGSI Inc.

Sawang sawa kanaba sa init sa Pilipinas lalo na pag Summer Season? Isa ka ba sa masang Pilipino na nagtitiis gabi-gabi dahil sa init ng klima ay pahirapan makatulog? Isa ka ba sa paulit ulit na maligo sa gabi ay hirap parin makatulog dahil sa sobrang init ng klima? Isa ka ba sa masang Pilipino na halos di na magdamit at sa labas na ng bahay, bintana or bubong natutulog para lang mapreskuhan? Isa ka ba sa masang Pilipino na nangangarap na magkaron ng sariling aircon para makalanghap naman ng malamig na hangin sa pagtulog ngunit kapos sa pera ? If malaking ‘OO’ yung sagot mo ay para nga sayo itong blog page na to.

Ginawa ko tong webpage na to ay para makatulong sa masang Pilipino na makaexperience ng malamig na hangin sa pagtulog gamit ang isang ‘HOMEMADE AIRCON’ at maishare narin sa lahat if papano ito magagawa.

Papano nga ba to gawin?

Simpleng simple lang to gawin at kayang kaya mapa babae man o lalaki.

HOMEMADE AIRCON by PNGSI Inc.

Sundin lamang step by step yung mga dapat gawin:

  1. Ihanda muna yung mga gagamitin na gamit para makabuo ng isang homemade aircon:
    • Maliit na electric fan katulad ng nasa picture (any brand basta same yung itsura nya parehas sa picture).
    • Malaking timba na may takip.
    • Maliit na styro ice box na sukat or papasok sa loob ng timba na gagamitin nyo (if makakabili kayo ng pabilog na ice box mas mabuti).
    • Isang kutsilyo or gunting or kahit na anong matulis na bagay na pwedeng ipanghiwa or butas sa timba at styro.
  2. Simulan ng lagyan ng marka ng pagbubutasan yung timba at styro (Yung hugis ng butas, laki ng butas at dami ay depende sa inyo kung ano mas gusto nyo laki at dami ng butas).
    • Takip ng timba: Sukat dapat yung marka nya sa laki ng electric fan na gagamitin nyo sa ibabaw
    • Gilid ng timba: Depende sa inyo if ilang butas, laki at hugis yung gagamitin nyo
    • Styro: Maglagay lamang ng 2-4 na bilang ng butas sa may bandang itaas na gilid ng styro
  3. Simulan ng hiwain or butasin yung mga marka na ginawa nyo sa timba at styro.
  4. Pagkatapos mabutasan ay subukan nyo nang buuin yung homemade aircon nyo at paganahin para malaman if tama ba yung pagkagawa nyo or mali.
    • Maglagay muna ng malalaking yelo sa ice box (ideal yung malalaking block ice na sinlaki ng hollow block para mas matagal malusaw. Mas matagal malusaw mas matagal yung lamig ng homemade aircon nyo)
    • Ipasok na sa loob ng timba yung styro icebox na puno ng yelo.
    • Ilagay na yung takip ng timba
    • Ipatong yung electric fan sa ibabaw ng takip ng timba na may butas
    • ipwesto yung homemade aircon sa tabi ng malaking electric fan nyo sa kwarto
    • Itapat yung butas ng homemade electric fan nyo sa tabi or likod ng malaking electric fan nyo para yung lumalabas na malamig na hangin galing sa homemade aircon nyo ay hihigupin at deretso ibubuga naman sa inyo ng malaking electric fan nyo.
    • Pumuwesto sa pagtulog sa tabi ng malaking electric fan nyo pra yung lamig ng hangin ay diretso nyo mararamdaman at maeenjoy.

Hopefully maging ganito din kasarap yung tulog ng mga anak nyo sa gabi kahit na wala kayo sariling aircon sa bahay.

*Note: Mas epektibo at maeenjoy ang homemade aircon sa loob ng kwarto at gabi sa oras ng pagtulog.

How to lower your loan cost

BDO Money Matters | By Christine Dychiao for Yahoo! Southeast Asia -Tue, 20Nov2012

Borrowing money definitely costs money, but you can also minimize the cost of your loan by keeping these practical, money-saving tips in mind:

Shop around for rates

Before committing to a loan agreement with the bank you’ve been banking with for years, make sure you shop around and compare rates across a number of financial institutions. Also, do not discount credit cooperatives you may borrow from. Watch out for special promotional rates too, it pays to keep yourself updated on every potential lender’s loan offerings.

Lower your principal

Try to limit the amount you are borrowing to a minimum. When you have extra funds, try and pay more than your required monthly payment. This will lower your principal, which also reduces the interest you have to pay over the life of the loan.

Shorten your loan term

By simply looking at a loan table, you can see that the longer the tenor of your loan, the higher the interest rate. As much as possible and as your liquidity would allow, always go for the shorter loan term. Yes, your monthly amortization will increase, but you also reduce your overall interest payment.

Take advantage of prepayments

Should you find yourself with extra funds on hand, remember that Article 137 of the Consumer Act of The Philippines gives the consumer the Right to Prepay. As a borrower you may prepay in full or in part, at any time without *penalty, the unpaid balance of your consumer credit transaction. This reduces your outstanding balance, reduces the tenor, as well as the overall interest costs of your loan.

*Note however that banks may charge a minimal processing fee for full payment of your loan before maturity.

When it comes to buying a car or a home on loan, every centavo counts. You do not want to find yourself squeezed to a point that finances become too tight. It pays to look for ways in lowering the cost of your loan, so you can truly enjoy the fruits of your labor.

A guide to closing costs in the Philippines

BDO Money Matters | By Christine Dychiao for Yahoo! Southeast Asia -Sun, 04Nov2012

You’re moving on to your next dream home, and selling off your old house to someone who thinks it is a treasure. But before this story becomes a happily ever after, you’ve got closing costs to settle. Whether you are selling or buying a home, you need to be aware of the costs you will be incurring in transferring ownership that are over and above the price of your property.

While costs may differ based on the circumstances of the sale and how you are financing your home, here’s a general guide to help you price your property or negotiate your purchase. Hopefully, this will eliminate the element of surprise expenses when it comes to sealing the deal on your home.

Closing Costs for Home Sellers:


1. Broker’s Commission.
This is the amount agreed upon with your real estate broker. This is usually a percentage of the total selling price of your property.

2. Capital Gains Tax (individual). This is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets. The real property tax rate is 6% of gross selling price, zonal value or fair market value, whichever is higher. If the seller is a corporation, this is referred to as a Creditable Withholding Tax.

3. Real estate taxes due if applicable. According to Glennis Nitafan, Managing Partner of Highstreet Manila Group, a property consulting firm, “There are instances when a seller would give a NET price excluding the above fees.” In cases like these, the broker includes the closing fees in the computation of the price of the property.

Closing Costs for Home Buyers:

The Buyer meanwhile shoulders all the transfer related charges including but not limited to:

1. Documentary Stamps Tax. This is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property. The tax rate for a deed of sale is 1.5% or P15 for every P1,000 of the selling price, zonal value or fair market value, whichever is higher.

2. Transfer Tax.
This is a tax imposed on the sale, donation, barter, or any other mode of transferring ownership or title of real property. The computation varies from .5% to a high of .75% of zonal value or selling price whichever is higher, depending on the municipality. Refer to the City Treasurer for the rate applicable to your property.

3. Registration Fee.
This is usually 0.25% of the selling price or fair market value, which ever is higher. However, according to Nitafan, computation by the Registry of Deeds is based on a table, and may also include other costs in order to arrive at the final Registration Fee amount.

4. Notarial Fee. The Deed of Absolute Sale should be notarized for a fee of about 0.1% of the selling price.

5. Loan fees. If the buyer takes out a home loan from a bank these are the extra costs tied to a home loan:

• Appraisal fee
• Handling fee
• Mortgage redemption insurance
• Fire Insurance

Mode of Payment: Note that all checks payments payable to Bureau of Internal Revenue, City Treasurer and Registry of Deeds have to be in a Manager’s Check.

According to Nitafan, most delays in the transfer of titles are caused by improper computation, or the amounts or payee names in the checks are erroneous. It is best to double check amounts and payee names before having the Manager’s Check issued.

Before closing that deal, check with your broker or real estate professional for good faith estimates of your closing costs. If you have the time, check with your local government agencies, bank officer, and real estate broker for the exact costs you will be incurring.