Re-financing Housing Loan

[_Qwerty_]

Hi guys,

I learned that BDO is offering re-financing on housing loans:

http://www.bdo.com.ph/Loans_Personal/bdo_home_loan.htm

I have an existing loan kasi sa Pag-ibig at 12% interest for the first 5 years then after that 14% na. 7 years yung loan ko, nakaka 1 year na ako, so 6 years to go pa.. I asked a couple of banks last year.. hindi raw sila nag re refinance.. kaya nagulat ako nung nakita ko yung website nang BDO, ang 10 years loan nila eh 11.25% interest lang.

Does anyone have any experience in refinancing their housing loans?? Any comments?? May iba pa bang banko nag offer nito??

[shadow]

bakit napakataas naman yata ng interest sa pagibig, akala ko sabi ni noli ibaba niya or at least at par with the market? eh kung ganyan kataas sa commercial bank ka na lang instead sa pagibig

[_Qwerty_]

binaba nga nila nang 11.5% .. kaso sa new loans yun.. yung existing.. eh hindi kasali..

[amandaaz]

[SIZE=2]What legal obligations are involved in a loan with a signed contract?I've signed the contract. The bank told me my monthly payments. The lender/underwriters have backed out b/c the appraisal was high! What legal obligations are involved since I'm right on my end and the contract was signed saying that the bank is going to get the loan. I'm in limbo now with nothing to making payments to except outrageous payments of interest on a construction loan? Isn't there something that can be done to push things along?[/SIZE]

[1D4LV]

erwin, mazingerz might be able to help you, but as far as i know, BDO is only the bank here who does home refinancing.

[mark_t]

Hi guys,

I learned that BDO is offering re-financing on housing loans:

http://www.bdo.com.ph/Loans_Personal/bdo_home_loan.htm

I have an existing loan kasi sa Pag-ibig at 12% interest for the first 5 years then after that 14% na. 7 years yung loan ko, nakaka 1 year na ako, so 6 years to go pa.. I asked a couple of banks last year.. hindi raw sila nag re refinance.. kaya nagulat ako nung nakita ko yung website nang BDO, ang 10 years loan nila eh 11.25% interest lang.

Does anyone have any experience in refinancing their housing loans?? Any comments?? May iba pa bang banko nag offer nito??

Bakit po masyado maiksi ang loan ninyo, why did you not choose
a 25 year or 30 year payment term? How can you take advantage of
inflation with a 7 year loan?

Kasi po in my opinion housing loans should always be long term to
take advantage of inflation and to avoid default.

[jozef_10]

^ probably because a longer term will mean bigger interest payments?

[mark_t]

^ probably because a longer term will mean bigger interest payments?

But if you factor in inflation after 10 years ok na para sa akin.

At the current 9% inflation rate, any loan you take on now will
be cheap after 15years in terms of cost of money since we are
not paying it in terms of gold standard.

I think it will be better if he extend his loan to a 30 year term.
Even if he can pay it off in 10 years.

He can divert some of the money to a pension plan like SSS that will mature in
20 years and use that money when the plan matures at age 60.
SSS savings actually multiplies your money 10 times its value at maturity.
Maganda sya as an instrument to secure this housing loan.
PAGIBIG loans are allowed up to age 70 because Mortgage Redemption Insurance
is up to age 70 in PAGIBIG. The idea is once he age 60 his SSS plan pays off the
loan to age 70. Age 70 being the cut off any housing loan.

And if he does not intend to last till age 60, he still keeps the house.

[jozef_10]

but with the savings in the interest payments will it not offset the inflation? i'm just wondering

[mark_t]

but with the savings in the interest payments will it not offset the inflation? i'm just wondering

Inflation actually works for you in the fractional reserve system.

You only have savings when you use your money to buy gold coins or gold
or silver at prevailing price plus 7-8%premium charges.

Another form of savings is in agricultural land up to 5 hectares in the philippines.

All others are expenses to me.

I am looking at it in terms of cost of money.

[yebo]

baka kasi kagaya ko siya na ofw. normal loan terms for ofw's is 5 years, 7 years if you have good credit history, and 10 years if you are an old client in good standing. di kami binibigyan ng 15 yrs kasi they see our employment as short term only, kahit na permanent employee pa and not contractual.

taas nga nyang 12% na yan. housing loan ko with psb is only 10.5% 7 years term. loan was taken in december 2006.

[mark_t]

baka kasi kagaya ko siya na ofw. normal loan terms for ofw's is 5 years, 7 years if you have good credit history, and 10 years if you are an old client in good standing. di kami binibigyan ng 15 yrs kasi they see our employment as short term only, kahit na permanent employee pa and not contractual.

taas nga nyang 12% na yan. housing loan ko with psb is only 10.5% 7 years term. loan was taken in december 2006.

That's the problem with OFWs iniipit talaga sila ng banks, they know
they can call in the money at a shorter term.

The solution is to open a business wherein the OFW will generate
enough revenue to qualify for a 30 year loan. A single proprietorship business with
a 150,000.00 TO 300,000.00PHP taxable income will do, but most so called experts will
teach people how to avoid taxes hence they cannot enjoy the fractional reserve system.
Most experts have not attended the PAGIBIG FUND seminar and have actually read the SSS handbook.
They have no idea how to secure their loans except against their employment contract.

Ngayon pag nakinig ka naman sa mga magaling at puro iwas taxes
and iwas SSS hindi mo ma enjoy ang sistema. Of course tax free
income ng OFW but dapat wag na siya lang ang kumikita sa pamilya.
So even if OFW siya dapat qualified pa rin siya sa 30 year loan thru
his wife. Kasi puede mag business or mag employee wife.

Kung hindi niya binabayaran SSS and PAGIBIG ng asawa nya, at hindi siya
ibinayad ng parents nya ng SSS when he turned 14 years old medyo mahirap
nya ma realize how it works.

[KERSMcRae]

2 1/2 years na itong post on re-financing at marami na nagbago in terms of interest rates.
Sir Qwerty, paano nyo nakuha yung Pag-Ibig housing loan nyo? anung circular # sya kabilang? Kung 7 years lang ang loan nyo at 12% for 5 years then 14% sa rest, e malaki ang principal amount na nakuha nyo (kung base sa latest circulars nila ngayon). Sa present set-up at mga bagong circulars ng Pag-Ibig , 6% - 11.5% na ang rates depende sa loan amount at hindi sa loan terms.
Another thing is naka-qualify po ba kayo para sa GPIP?
Lastly, with regards to re-financing. I guess solved nyo na ito this date. Meron din kasi isang 'Asset Management Company' sa Makati, yung BFS (Bahay Financial Services). Search nyo po sa internet about this company and see if it helps.
Good day!

[_Qwerty_]

inde po ako OFW.. so normal loan processing lang po..

pinili ko yung 7 yrs.. kasi gusto ko talaga matapos nang maaga yung loan.. para makapag loan ulit ako.. tsaka pag ni compute mo kung 25 or 30 yrs.. napakalaki nang interest.. gusto ko nga nung una 5 yrs lang.. kaso hindi kakayanin.. hehehe baka di na kami kumain.. lolz

hindi ko na pina refinance.. kasi nga 7 yrs lang yung loan ko.. so i made the computations.. pag pinalipat ko halos makakatipid lang ako nang 10T tapos hassle pa paglalakad nang papeles.. so hinayaan ko na lang sa pag ibig.. may rebate naman sila monthly na 500+ don sa loan ko.. so halos 6T per year na din yung rebate.. 3 yrs na lang kasi yung loan ko tapos na..

[meledson]

We had our housing loan refinanced several times already. 1st and 2nd was to get a lower interest rate. 3rd, on the same bank to increase the remaining payment period from 3 to 5 years. financial difficulty reasons. now, less than 3 years to go. :D

[KERSMcRae]

inde po ako OFW.. so normal loan processing lang po..

.......so halos 6T per year na din yung rebate.. 3 yrs na lang kasi yung loan ko tapos na..

Yun nga ang GPIP sir. (Good Payor Incentive Program).

Buti pa sa inyo, matatapos na ang mga financial obligations. Sabi nga sa commercial, "di bale na magdildil ng asin basta may sariling bahay" ....at sasakyan!
Hirap din pala pag huling isinilang, walang magawa kundi mainggit (ako).:newbie:

[rufoh]

Me and my wife went to PAG-IBIG Main Office in Batangas just last month to inquire about our existing housing loan.

Our existing loan was at 10% interest rate for 30 years. I started paying it since June 2006, 4 mos before their new interest rates took effect.

With their new interest rates my loan would have a 7% interest only which is a great relief since I can shorten my loan period to 5 years and aabot lang 7+++ ang monthly amortization.

Sadly, pag pina-restructure ko yung loan ko, the old rate will apply (10%). The only way to take advantage of the lower interest rate is to have someone assume my loan ( a close friend, a relative or wife) tapos aapply ng panibagong loan in his/her name. Kaso my wife doesn't have a PAG-IBIG account yet dahil d naman sila binabayad ng clinic nila..(same as SSS and Phil Health).

[swordsman]

Bakit po masyado maiksi ang loan ninyo, why did you not choose
a 25 year or 30 year payment term? How can you take advantage of
inflation with a 7 year loan?

Kasi po in my opinion housing loans should always be long term to
take advantage of inflation and to avoid default.

But if you factor in inflation after 10 years ok na para sa akin.

At the current 9% inflation rate, any loan you take on now will
be cheap after 15years in terms of cost of money since we are
not paying it in terms of gold standard.

I think it will be better if he extend his loan to a 30 year term.
Even if he can pay it off in 10 years.

He can divert some of the money to a pension plan like SSS that will mature in
20 years and use that money when the plan matures at age 60.
SSS savings actually multiplies your money 10 times its value at maturity.
Maganda sya as an instrument to secure this housing loan.
PAGIBIG loans are allowed up to age 70 because Mortgage Redemption Insurance
is up to age 70 in PAGIBIG. The idea is once he age 60 his SSS plan pays off the
loan to age 70. Age 70 being the cut off any housing loan.

And if he does not intend to last till age 60, he still keeps the house.

Inflation actually works for you in the fractional reserve system.

You only have savings when you use your money to buy gold coins or gold
or silver at prevailing price plus 7-8%premium charges.

Another form of savings is in agricultural land up to 5 hectares in the philippines.

All others are expenses to me.

I am looking at it in terms of cost of money.

Interesting... pero baka naman kaya yong iba pinipili shorter term kasi baka hindi ma-sustain ang source of income for the next 30 years.

[KERSMcRae]

kung ako ang nag-loan at shorter term, hindi ko iniisip ang pag-sustain ng source of income for 30 years,
instead I'll do a very basic computation . Say I'll borrow Php1 million, interest * 8.5%
For 10-year term, P1M becomes P1,850,000, and if 30-year term, P1M loan becomes P2,550,000.

Since Im not a master in commerce & economics, I'll think first of the added interest na P1.55M compared to P850,000 sa shorter term. That is without thinking other factors like 'value of money' in the next decade, 'inflation', 'depreciation', etc,etc. So I'll end up borrowing an amount for a shorter term.

I think, you can 'save' if you choose longer terms for a Housing loan but NOT in a Car loan...since real properties wont depreciate unlike 'personal' properties like cars.