Housing Loans

**chronicle** · April 17th, 2018 08:18 PM

Originally Posted by jut703

No specific bank naman. I'll go with whichever gives me the lowest rate.

How many years yung 5.5? Mura pa rin yan compared to what I've been offered.

I'm also wondering if it's better to get 1-year rates and then just recompute every year, or to get locked in rates for the entire 5 or 10 year duration of the loan.

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Fix 3 years tapos recompute after.

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**jut703** · April 17th, 2018 08:26 PM

Originally Posted by chronicle

Fix 3 years tapos recompute after.

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Thanks. Did they explain to you how the recomputation process works?

How much of the loan amount remains after 3 years (put differently, what percentage goes of that first 3 years goes into paying the principal and what goes to paying the 5.25% interest?)

And since they've locked you in for the entire loan duration despite only giving the rate for the first 3 years, can't they simply give you an exorbitantly higher rate for the remaining x years of your loan?

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**chronicle** · April 17th, 2018 08:51 PM

Originally Posted by jut703

Thanks. Did they explain to you how the recomputation process works?

How much of the loan amount remains after 3 years (put differently, what percentage goes of that first 3 years goes into paying the principal and what goes to paying the 5.25% interest?)

And since they've locked you in for the entire loan duration despite only giving the rate for the first 3 years, can't they simply give you an exorbitantly higher rate for the remaining x years of your loan?

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Yes. Rates after is dependent on the current actual rate of the bank that year. Could be higher or lower. But most likely higher since baseline is rather low.

They will release a schedule of your remaining balance. So tuloy tuloy lang ang bawas every year from the loan amount.

Kaya ko natanong kung ka tie up ba yung condo mo sa isang bank is dahil typical, loanable amount is around 60 to 80 percent lang if not tied up. So maglalabas ka pa.

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**montro** · April 21st, 2018 10:42 AM

Try Robinsons bank sir its quite good interest rate for housing loan.

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**Sarsi** · April 21st, 2018 01:08 PM

Subscribing to this...

I will meet somebody from Filinvest in a while for a possible purchase of a condo unit, primarily for AirBnB.

Also, looking at the possibility of building a house in our property in Malolos, live there and rent out our current place here in Scout area.

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**EQAddict** · April 21st, 2018 05:44 PM

Originally Posted by jut703

No specific bank naman. I'll go with whichever gives me the lowest rate.

How many years yung 5.5? Mura pa rin yan compared to what I've been offered.

I'm also wondering if it's better to get 1-year rates and then just recompute every year, or to get locked in rates for the entire 5 or 10 year duration of the loan.

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I always get 1 year rates. The banks make a killing on the fixed term interest rates.

Go with your current bank and just say you want a preferred rate. Otherwise you move your business and your deposits to a more competitive bank. They will give in.

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**EQAddict** · April 21st, 2018 05:49 PM

All housing loans use the diminishing interest method. I.e. more % of the payments go to servicing interest first before the principal. After time goes by, more % goes to paying off the principal. They really take their pound of flesh.

For example: 1 million loan. 10 years to pay. Fixed 5%. So thats 50% interest over 10 yrs bringing the total to 1.5 million.

Thats about 12,500 a month. Now for the first couple of years maybe 70-80% of that 12500 goes to paying off the 500k interest and the remainder goes to paying off the 1 million principal. So your remaining principal balance after the first few years is still close to a million cause you were paying for the interest first.

If you make a balloon payment (got a bonus etc) it has to be on the anniversary of your loan...but in this case they will deduct from the principal. The monthly payments DO NOT CHANGE. They will just shorten the term. Classic banks.

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**Wh1stl3r** · April 21st, 2018 06:04 PM

Aside from placing on paper all the other associated expenses with the loan, I always ask the bank for a complete schedule of payments for the duration of the loan. So there will be no surprises. I can get the total cost of the loan from there. A lot of banks boast lower rates and free this, free that, but it turns out they charge quite a bit more for other associated expenses.

**Sarsi** · April 21st, 2018 06:10 PM

Originally Posted by Sarsi

Subscribing to this...

I will meet somebody from Filinvest in a while for a possible purchase of a condo unit, primarily for AirBnB.

Also, looking at the possibility of building a house in our property in Malolos, live there and rent out our current place here in Scout area.

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Made the reservation for a Robinsons' project in Greenhills. A new home by next year.

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