12 Tips to Help You Choose Warm Clothes
In a 4 season climate, its nice to know how to dress warmly enough to stay comfortable outdoors. Here are some tips for doing so.
1.Dress in layers.
The more layers, the better. Dressing in layers of clothing does several things for you:
◦Layers fill up the space between you and your winter coat with insulation. An undershirt, a shirt, and a sweater each represent one layer. Your winter coat is yet another layer. The more layers of insulation, the better.
◦Layers tend to trap air better. If you have only an overcoat on, the warm air next to your body tends to leak out of the top and bottom of the overcoat as you make body movements. Layers help to hold this air in.
◦Layers allow you to regulate your body temperature more accurately. If you get too warm, you can always open up a layer -- starting with opening up the top of your overcoat and progressively opening up more and more layers as you get warmer and warmer.
2.Favor natural materials.
In my opinion, there is nothing warmer and lighter than a down overcoat. If you can, buy one that is rated to a certain temperature such as 20 degrees below zero Fahrenheit.
3.Don't get over-sold on synthetic materials.
Synthetic materials often come highly recommended. Before you buy synthetic materials, however, be aware of the following:
◦Wool will keep you warm even when it is wet. I know of no synthetic material that will do this.
◦Natural materials tend to breath better. This can be critical when you start to work up a little bit of a sweat and need to evaporate this sweat so that you don't become cold later when you are a little less active.
One exception is the value synthetics add as wind-breaking materials. It sometimes makes sense, for example, to have a pair of wool gloves (perhaps with leather palms for wear) covered by larger-than-your size mittens that have a nylon shell. This will keep your hands very warm.
4.Be aware that you lose more heat through your head than any other body part.
This can be very deceptive. Your head never feels cold. Why? Because your body sends more heat to your head than any other body part to protect it.
Keeping your brain warm is so critical that your body will sacrifice any other body part before it will let the brain get cold.
Just because your head does not feel cold does not mean you are not losing heat off the top of your head. Remember this forever! You will not feel yourself losing heat off the top of your head, but you are!
The reason your feet and hands are cold is because you are losing heat in the head area. Why? Because hands and feet are low priority and your head is top priority.
This is the body's system for rationing its limited heat supply. Because your head is given top priority when it comes to heat supply, it never feels cold even though it is in fact a giant heat dissipation module.
Remember! Your head leaks heat. Plug the leak. If you will prioritize keeping your head warm, you will have won half the battle in keeping your body warm.
5.The dumber your head-gear looks, the warmer it is.
I was recently shopping at L.L. Beans. A man was looking at a bombardier hat with a leather cover and a sheepskin lining.
A woman who appeared to be his wife said to him, "Forget it! You're not wearing it!" Grimly, he put it back. He had just barely started to look.
The hat would have gone well with the character Jim Carey played in the film Dumb and Dumber. As dumb as it looks, it is also very warm.
Yes, head-gear that dramatically alters your appearance is incredibly warm. The converse is also true. Cool-looking winter hats are just that -- a little too cool temperature-wise.
Why do you think those Russian women wear those big fur hats when it's 20 below zero? Because fur is incredibly warm, that's why.
6.Keep your feet warm.
Your feet are in contact with the cold ground. You should wear well-insulated boots. Again, favor natural materials. Wear wool socks if you can find them and layer them if necessary. Sheep skin boots can also be quite warm.
7.Keep your neck warm.
A scarf around the neck or a jacket that zips up to your neck will do.
There are 2 important reasons for covering your neck:
◦You want to leave as little skin exposed as possible. This is the obvious reason.
◦A less obvious reason is that you want to seal the top of your jacket so that air does not leak out of the body of your jacket. You lose a lot of heat when the top of your jacket is basically an open hole surrounding your neck. If you were a boat, you'd sink.
Patch up the leaks wherever you can. Be sure to buy a jacket that has velcro seals on the cuffs of the sleeves so that you get a tight seal against the cold around your wrists.
8.Prioritize! Decide in advance which body parts you wish to keep warmest.
This was taught to me by a lady from Norway. She says that keeping your priorities straight will help keep you warmer. Some body parts are more important than others.
Here is how I suggest you prioritize based on what I learned from her:
◦First, you want to keep your torso warm.
◦Second, your want to keep your head warm
◦Third, you want to keep your feet warm.
◦Fourth, you want to keep your neck warm.
◦Fifth, you want to keep your hands warm.
◦Sixth, you want to keep your legs warm.
By focusing on what is most important first, you are likely to stay warmer. Why? Because ignoring a very important priority area, such as the head, will make you cold very quickly.
9.Make sure you don't sweat.
If you get too warm. you sweat. This is very bad. If you sweat, you get wet. If you get wet, you get cold.
How do you avoid sweating? Make sure you peel off your layers as you start to get warm. A very fast way to cool off is to open up your jacket. Another is to take off your hat.
Anything that helps you to radiate heat will help you to cool down. Taking off your mittens turns your fingers into radiator prongs radiating heat. Taking your hat off turns your head into one giant radiator prong radiating heat.
The key is to stay on top of it. At the first sign of excessive warmth, start opening things up. Usually this happens when you are doing something that causes you to exert yourself, such as climbing a hill.
10.Keep your face warm by keeping the rest of your body warm.
Yes, you can cover your face with a scarf or a face mask. Do so if it is cold enough and you have to. However, I find covering my face to be uncomfortable.
I prefer to employ another tactic. I like to keep the rest of my body so warm that I can afford to lose warmth through my face.
Think of it as a bank account. Warmth you preserve with other parts of your body can be spent on your face. Call this tactic saving face if you need an easy mnemonic.
11.Wear long underwear.
Besides providing an extra layer, long underwear saves your legs if all you are wearing are blue jeans.
12.Buy a good winter coat.
I've saved the best suggestion for last. Here are some of the features you want in a winter coat:
◦Make sure it features down insulation. In spite of commercial advertising to the contrary, there is nothing warmer than down -- in my opinion.
◦Make sure it is rated. My coat is from L.L. Beans. It is rated to 20 degrees below zero (fahrenheit). It is quite warm. You can do even better than this at a mountaineering store if you need to.
Note that the ratings on coats are generally geared towards moderate activity. If you are planning on standing around gazing at the stars through your telescope, you may need to buy something that is even warmer.
◦Make sure it has a hood. This is important because it represents yet another layer. You should wear both a hat and a hood if it is very cold.
Ideally the hood will stick out in front of your face just like the hoods of Antarctic explorers you see in National Geographic. This traps air near your face. The fur lining that lines the hood is a further air trap. A natural fur can provide a further benefit; it reflects heat back to your face.
Unfortunately for warmth, the fur on my hood is cotton and acrylic.
◦Make sure that all openings on the jacket seal. This includes the top of the jacket and the sleeves. There should be a pull string that lets you adjust the waist so that you don't lose air out of the bottom.
◦Buy a coat that is long enough. I special ordered mine in a long size. The racks in the store did not carry one that was long enough to suit me.
Ideally, I want a winter coat to extend far down on my thighs and the sleeves to reach down to my hands.
Conclusion
How you feel about wintertime is largely dependent on how good a job you do of keeping yourself warm. It's a modest ambition -- wanting to stay warm. But it is very important to your wintertime morale.
What is the difference between the fixed rate vs variable/floating rate mortgages
What is the difference between the fixed rate vs. variable/floating rate mortgages?
For most people looking to buy their next home this question comes up all the time. When you look at the bank's posted rates you usually see interest rates for many different terms for fixed and variable interest rates. For most, the choice is always the same and that it's a fixed rate mortgage but you do have options. And although the fixed rate mortgages are the easiest to understand they are not always the best choice.
The difference between the fixed rate mortgage and the variable rate mortgage is in how the increase rates will be set. The fixed rate has an interest rate that is set based on the bank's interest rate around the time you arrange that mortgage. The variable rate mortgage will be based on what the bank rate is and fluctuates over the life of the mortgage. So, do you know which one you want to get?
You will want to do as much research as you can to find out about fixed rate vs. variable rate mortgages and which one is right for you. The more you know the easier you will be able to decide which one you want to go for. Here are some of the things that you need to know about each type.
Fixed Rate Mortgages:
1.This type of mortgage is based on the bank's rate around the time the mortgage is set-up and the rate is fixed for the first few years of the loan term/tenure.
2.With the fixed rate you will have a set rate for the first 3, 5 or 10 years depending on the package.
Variable Rate Mortgages:
1.These mortgages are becoming more popular these days with mortgage hunters. This type of mortgage is better for higher risk threshold customers. If you have this type of mortgage you will have to hope that the bank rate will remain stable.
2.This type of mortgage will depend on the bank you use and the bank rate. Variable rate mortgages can save you a lot in interest over the life if the mortgage, but your payments will fluctuate up and down with the market.
3.Variable/floating rate depends on the changes of BLR, MLR or FDR rate (depending on the bank you choose the mortgage from).
These are not all of the things that you need to know when it comes to fixed rate vs. variable rate mortgages. They are the most important ones though. You want to go online and do as much research as you can. It is important to understand the difference between the two. So always take the time to learn all you can.
You need to know how the fixed rate mortgage and the variable rate mortgage will fit your lifestyle and your financial needs. By doing your research you can quickly figure this out. That way you will be able to better able to make a decision about which type you should have. Do a search on our SmartLoans wizard engine for fixed rate vs. variable rate mortgages or speak to our relationship manager from SmartLoans at (+6) 032-7826801 for more advice.
This will give you a great place to start your research. So get started now and use SmartLoans today to help you obtain the best rates across most banks in Malaysia!
For most people looking to buy their next home this question comes up all the time. When you look at the bank's posted rates you usually see interest rates for many different terms for fixed and variable interest rates. For most, the choice is always the same and that it's a fixed rate mortgage but you do have options. And although the fixed rate mortgages are the easiest to understand they are not always the best choice.
The difference between the fixed rate mortgage and the variable rate mortgage is in how the increase rates will be set. The fixed rate has an interest rate that is set based on the bank's interest rate around the time you arrange that mortgage. The variable rate mortgage will be based on what the bank rate is and fluctuates over the life of the mortgage. So, do you know which one you want to get?
You will want to do as much research as you can to find out about fixed rate vs. variable rate mortgages and which one is right for you. The more you know the easier you will be able to decide which one you want to go for. Here are some of the things that you need to know about each type.
Fixed Rate Mortgages:
1.This type of mortgage is based on the bank's rate around the time the mortgage is set-up and the rate is fixed for the first few years of the loan term/tenure.
2.With the fixed rate you will have a set rate for the first 3, 5 or 10 years depending on the package.
Variable Rate Mortgages:
1.These mortgages are becoming more popular these days with mortgage hunters. This type of mortgage is better for higher risk threshold customers. If you have this type of mortgage you will have to hope that the bank rate will remain stable.
2.This type of mortgage will depend on the bank you use and the bank rate. Variable rate mortgages can save you a lot in interest over the life if the mortgage, but your payments will fluctuate up and down with the market.
3.Variable/floating rate depends on the changes of BLR, MLR or FDR rate (depending on the bank you choose the mortgage from).
These are not all of the things that you need to know when it comes to fixed rate vs. variable rate mortgages. They are the most important ones though. You want to go online and do as much research as you can. It is important to understand the difference between the two. So always take the time to learn all you can.
You need to know how the fixed rate mortgage and the variable rate mortgage will fit your lifestyle and your financial needs. By doing your research you can quickly figure this out. That way you will be able to better able to make a decision about which type you should have. Do a search on our SmartLoans wizard engine for fixed rate vs. variable rate mortgages or speak to our relationship manager from SmartLoans at (+6) 032-7826801 for more advice.
This will give you a great place to start your research. So get started now and use SmartLoans today to help you obtain the best rates across most banks in Malaysia!
Refinancing Vs Re-pricing
REFINANCING VS RE-PRICING
Refinancing is when you cross over to another bank to enjoy lower interst rates for your mortgage. Usually customers would opt for refinancing when the lock-in period with their current bank is about to expire.Banks typically approve of refinancing if the outstanding loan amount is more than $200k. This is because if the outstanding loan amount is too small, it might not be worth refinancing due to the charges that are involved.
- Prepayment Penalty (1% - 2% of the outstanding loan) if the full redemption is within the lock in period
- Redemption Fee of between $300 to $500
- Claw back charges such as the legal subsidies, valuation fees, fire insurance upon taking up the initial housing loan
There are bank packages offered to subsidise the penalty charges to bring over the loan with their bank but usually it is only 0.5% - 0.7% of the remaining loan amount or maximum up to $2000 or $2500 whichever is lower.
Therefore, it is important for you to consider the net savings to see if it is worth the effort to make the change.
Re-pricing is when you change to a more attractive loan package offered by your current bank/financial institution.
Banks typically offer better rates for their existing customers and most times, would prefer them to re-price and be locked in to the new package. You should also bear in mind that certain banks charge conversion fee for re-pricing which could cost up to $500 (i.e DBS/POSB).
So to choose between refinancing and re-pricing, you would have to consider the following factors:
1. Are you still locked in to your current bank? If so, how long more til the lock-in period is over?
2. If you are locked in for another 2-3months, it is preferred for you to send a notice to your existing banker 3 months prior to refinancing
3. Are the interest rates offered by other banks much lower than the rates you are currently paying every month? Calculate using our SmartLoans wizard tool to help with your decision-making
4. Calculate your total savings before opting to refinance and this includes the penalty charges, legal fees etc.
TIP: The total savings may outweigh the initial cost of refinancing so if you have a big outstanding loan amount [more than $500k], it would be more beneficial for you to refinance to a lower interest rate package for long-term savings.
Refinancing is when you cross over to another bank to enjoy lower interst rates for your mortgage. Usually customers would opt for refinancing when the lock-in period with their current bank is about to expire.Banks typically approve of refinancing if the outstanding loan amount is more than $200k. This is because if the outstanding loan amount is too small, it might not be worth refinancing due to the charges that are involved.
- Prepayment Penalty (1% - 2% of the outstanding loan) if the full redemption is within the lock in period
- Redemption Fee of between $300 to $500
- Claw back charges such as the legal subsidies, valuation fees, fire insurance upon taking up the initial housing loan
There are bank packages offered to subsidise the penalty charges to bring over the loan with their bank but usually it is only 0.5% - 0.7% of the remaining loan amount or maximum up to $2000 or $2500 whichever is lower.
Therefore, it is important for you to consider the net savings to see if it is worth the effort to make the change.
Re-pricing is when you change to a more attractive loan package offered by your current bank/financial institution.
Banks typically offer better rates for their existing customers and most times, would prefer them to re-price and be locked in to the new package. You should also bear in mind that certain banks charge conversion fee for re-pricing which could cost up to $500 (i.e DBS/POSB).
So to choose between refinancing and re-pricing, you would have to consider the following factors:
1. Are you still locked in to your current bank? If so, how long more til the lock-in period is over?
2. If you are locked in for another 2-3months, it is preferred for you to send a notice to your existing banker 3 months prior to refinancing
3. Are the interest rates offered by other banks much lower than the rates you are currently paying every month? Calculate using our SmartLoans wizard tool to help with your decision-making
4. Calculate your total savings before opting to refinance and this includes the penalty charges, legal fees etc.
TIP: The total savings may outweigh the initial cost of refinancing so if you have a big outstanding loan amount [more than $500k], it would be more beneficial for you to refinance to a lower interest rate package for long-term savings.
Types of Mortgage Packages and Features
Types of Mortgage Packages and features
There are many different types of mortgage packages available in the market today. Here, we highlight the different types of packages and features that banks currently offer in Malaysia. Some mortgage packages have a combination of the features highlighted here.
Capital and Interest Mortgage
This is the standard mortgage package. Monthly payments are made towards paying both the interest and the principal. Each monthly payment is equal, so in the early years of the loan term, a larger portion of the monthly payments goes towards interest payments. And the principal payment portion gradually grows larger over the loan term. At the end of the loan term, the debt would have been fully repaid.
Cash Back Mortgage
In a cash back loan, the lender gives a portion of the loan back to the borrower in cash. In such an arrangement, the borrower is typically tied to the loan for a certain lock-in period.
Combo/Hybrid Mortgage
A combo/hybrid mortgage allows you to divide your total mortgage loan into separate portions and apply a different loan package to each of them. It could for example, be a two-part loan with one part based on a fixed-rate package and another part based on a floating rate package.
Interest-offset Mortgage
Recently many banks have started offering interest-offset packages where you can get the same interest rate on part of your deposits that you can use to pay for your mortgage loan. Typically the ratio is 2/3 of your deposit, so it doesn’t fully offset your mortgage interest amount. The remaining portion of your deposits will have a lower interest rate. This is to attract people who have a lot of cash sitting in the bank with very low deposit rates.
Interest-only Mortgage
As the name implies, there are no principal payments during a part or the whole loan term and the loan balance remains unchanged during that period. The monthly payments are used only to pay for the interest. The full loan principal is then paid off at the end of the loan period - or typically the loan is just refinanced.
Fixed Rate Mortgage
For somebody who wants to be sure exactly how much his/her monthly payments will be and not worry about interest rate changes, there are fixed rate home loans packages available. Fixed rate packages offer a fixed interest rate for a certain period, after which it becomes a floating rate loan. Fixed rate loans also typically come with a lock-in period and early repayment penalties.
Fixed rate packages in Malaysia are only offered up to a 3-10 year period, so the types of 20 or 30-year fixed rates packages offered in many other countries are not available here.
Payment Holiday Mortgages
This is more of a loan feature than a loan type itself, but many loan packages offer a possibility to take a break from monthly payments sometime during the loan term. This can be, for example, 1 or 2 monthly payments every year.
Variable Rate Mortgage
In a variable rate housing loan, the interest rate can fluctuate during the loan term. The interest rate is calculated based on a reference rate and a margin. The reference interest rate is either BLR (Base Lending Rate) or OCBC's MLR (Mortgage Lending Rate) or Eon Bank's FDR (Fixed Deposit Rate). If the loan is tied to bank’s internal rate, the bank usually gives at least one month notice to borrower. Variable rate packages can typically be repaid early, except in cases where the margin is lower for a given lock-in period.
There are many different types of mortgage packages available in the market today. Here, we highlight the different types of packages and features that banks currently offer in Malaysia. Some mortgage packages have a combination of the features highlighted here.
Capital and Interest Mortgage
This is the standard mortgage package. Monthly payments are made towards paying both the interest and the principal. Each monthly payment is equal, so in the early years of the loan term, a larger portion of the monthly payments goes towards interest payments. And the principal payment portion gradually grows larger over the loan term. At the end of the loan term, the debt would have been fully repaid.
Cash Back Mortgage
In a cash back loan, the lender gives a portion of the loan back to the borrower in cash. In such an arrangement, the borrower is typically tied to the loan for a certain lock-in period.
Combo/Hybrid Mortgage
A combo/hybrid mortgage allows you to divide your total mortgage loan into separate portions and apply a different loan package to each of them. It could for example, be a two-part loan with one part based on a fixed-rate package and another part based on a floating rate package.
Interest-offset Mortgage
Recently many banks have started offering interest-offset packages where you can get the same interest rate on part of your deposits that you can use to pay for your mortgage loan. Typically the ratio is 2/3 of your deposit, so it doesn’t fully offset your mortgage interest amount. The remaining portion of your deposits will have a lower interest rate. This is to attract people who have a lot of cash sitting in the bank with very low deposit rates.
Interest-only Mortgage
As the name implies, there are no principal payments during a part or the whole loan term and the loan balance remains unchanged during that period. The monthly payments are used only to pay for the interest. The full loan principal is then paid off at the end of the loan period - or typically the loan is just refinanced.
Fixed Rate Mortgage
For somebody who wants to be sure exactly how much his/her monthly payments will be and not worry about interest rate changes, there are fixed rate home loans packages available. Fixed rate packages offer a fixed interest rate for a certain period, after which it becomes a floating rate loan. Fixed rate loans also typically come with a lock-in period and early repayment penalties.
Fixed rate packages in Malaysia are only offered up to a 3-10 year period, so the types of 20 or 30-year fixed rates packages offered in many other countries are not available here.
Payment Holiday Mortgages
This is more of a loan feature than a loan type itself, but many loan packages offer a possibility to take a break from monthly payments sometime during the loan term. This can be, for example, 1 or 2 monthly payments every year.
Variable Rate Mortgage
In a variable rate housing loan, the interest rate can fluctuate during the loan term. The interest rate is calculated based on a reference rate and a margin. The reference interest rate is either BLR (Base Lending Rate) or OCBC's MLR (Mortgage Lending Rate) or Eon Bank's FDR (Fixed Deposit Rate). If the loan is tied to bank’s internal rate, the bank usually gives at least one month notice to borrower. Variable rate packages can typically be repaid early, except in cases where the margin is lower for a given lock-in period.
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