Housing Loan - Short term repricing or long term fixed rate?

[kotiko]

Hey Guys!

Looking for some expert advice from the financial gurus out here.

I'm set to apply for a housing loan under Pagibig and I'm confused on whether to get a 3-year (6.25%) /5-year repricing (around 7%) for 20 years, OR a long-term fixed rate for 20 years at 8.8%.

Fast facts: I already have a home loan from bank but I need additional funds to pay off a family member who shouldered the the bulk of the payment I made. Pagibig seems like the only option because I need a longer term (20 years) to be capable of paying off monthly without too much stress (vs. getting an additional loan from the bank).

So going back to the question, which would be a safer bet? I'm being convinced by the family member to get the 20 year fixed as a safer option in case things go wrong economically and politically as the years come by (seems like this happened sometime several years ago when interest rates blew up as the advice was from experience). I'm just about 30s BTW. On the other hand, lower interest rates at shorter fixed periods seem to go lower and lower at least for the past 6 years, so I'm concerned I may be missing out on this opportunity especially if Pagibig is too strict with not allowing a change in repricing interest rates.

Thoughts please! Thank you!

[vinj]

Right now, the rates are projected to go up. The only question is when and by how much as this has been an ongoing sentiment since last year. You can lock in at 5 or 20 if you ask me and 8.8% fixed for 20 years seems good. If the monthly amortization is acceptable to your cash flow at least you can lock it in already and not worry. Save money on the side to do prepayments every other year or so.

[yebo]

^^agree. Pag long term like 20 years it will be better to lock it in. If the rates go down you can always refinance and pay off the higher rate loan.

[kotiko]

Thank you, *vinj and *yebo for your comments.

Looks like it ain't bad after all!

Kainis lang Pagibig rami documentary requirements!

Any more comments/thoughts will be greatly appreciated as well! Thanks!

[kotiko]

Thank you, *vinj and *yebo for your comments.

Looks like it ain't bad after all!

Kainis lang Pagibig rami documentary requirements!

Any more comments/thoughts will be greatly appreciated as well! Thanks!

[madduck]

Had a similar concern 3 years ago, if I should go with long term loan or a short term repricing loan. I went with the short term loan because my principal is not very big. I had few extra funds after paying the monthly amortization, which I saved and paid off portion of the principal to lessen it before the repricing of the loan. It was 5.25% in the first year, after the first year I have paid 60% of the principal. The next year, it was repriced to 7.25% and I paid it off that year. Since my principal is smaller in the 2nd year, the higher interest rate didn't cause me to pay more interests. I only had to make payments during repricing dates because the bank is fining me some fees if I pay in other days, which I read should be illegal.

But that 8.8% in 20 years sounds quite good.

[madduck]

-- double post

[madduck]

Fast facts: I already have a home loan from bank but I need additional funds to pay off a family member who shouldered the the bulk of the payment I made. Pagibig seems like the only option because I need a longer term (20 years) to be capable of paying off monthly without too much stress (vs. getting an additional loan from the bank).

Just curious, how are you going to apply for a home loan kung encumbered na ng bank yung property? Home improvement loan?

[kotiko]

Just curious, how are you going to apply for a home loan kung encumbered na ng bank yung property? Home improvement loan?

Actually different collateral yung sa first loan, it's more of a home equity loan.

[kotiko]

Just curious, how are you going to apply for a home loan kung encumbered na ng bank yung property? Home improvement loan?

Actually different collateral yung sa first loan, it's more of a home equity loan.

[Little Missy]

I also have a loan sa Pag-ibig at 6% (20 more years to go) at iniisip ko bayaran siya within the next 5 years.

Kung sa bank or stocks kasi nakatengga savings ko, tapos may binabayaran naman akong interest na 80k/year eh di parang wala din. Unless siguro gamitin ko sa business na kikita ng malaki.




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[_Qwerty_]

buti nga ngayon mababa na interest.. nung 2006 ako nag loan sa pag ibig nasa 12% pa non.. paid it in 7 years.... laki din nang interest..

[EQAddict]

go for the yearly repricing......the low interest rates now wont be doubling anytime soon.....

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[jut703]

go for the yearly repricing......the low interest rates now wont be doubling anytime soon.....

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Mine did. 4.75% last year, 8.8% this year.

Been trying to get lower rates for 2 months now. Lowest they've offered is 7.2% but it's still an outright ripoff because new customers are being offered 6%. Other banks have even offered me 5.8% for 3 years but I can't transfer because the transfer fees outweigh the savings.

Still trying a last ditch effort if they can at least match the 6% for 1 year, but if not, will have to settle for the 7.2% and hope that next year's rate will be lower.

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[_Qwerty_]

late 90s early 2000s tanda ko mga in house nasa 18%.. sarap na umutang ngayon.. ang baba na interest..

[Syuryuken]

mine is 3% pero hindi housing loan kundi "LAND PURCHASE LOAN" naka declare.

[carxynogen]

Just an info for those who are planning to get Pag-ibig loan.
https://www.pagibigfund.gov.ph/2020n...#july102020_14

Also, question sa mga nakapag loan na using fixed interest.
Let's say 3 yrs fixed interest at 6.375% yung kinuha nating for a 15 yr loan.
After 4th yr, just in case mag decrease ang rate to 5%, magiging 5% din ba makukuha natin na rate from 4th yr (floating rate)?

May nabasa kasi ako somewhere na kung ano yung initial interest mo, the repricing period will always give you interest rate greater than your current interest (probably around +1.5%).

[papi smith]

Mine did. 4.75% last year, 8.8% this year.

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Ang laki Ng jump.ah, I don't remember benchmark rates rising this high, though I did notice BPI raising time deposit rates from 4% to 6%, but that was just for month only I think, and then they dropped it immediately

[bxr monkey]

Kamusta mga housing loan rates ngayon?
BPI 7% fixed 5 years. 9.25% fixed 10 years.
May lower pa kaya na fixed rate?

[xwangbu]

from:

https://youtu.be/HBYjV_DU2vY