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housing loan - refinancing/restructure

minero · 12 · 2863

minero

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on: Nov 06, 2013, 07:58 AM
Help!

I have a housing loan (condo unit) @ 2.5m 15yrs 11.5% interest rate per annum. The loan is on its 4th year this month.

1. Though 11.5% is the normal interest rates, some people tell me its too high. Any suggestions how can I approach the bank to ask for a lower interest?

2. In case 1 fails, i am thinking to refinance the loan. I would like to transfer the loan to another bank which has better services for me. Is that possible? Also, i may get lower interest.

3. An option to pay the whole remaining principal. But this will deplete all my resources.

Your thoughts?

Thank you.


newbie_buboy

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Reply #1 on: Nov 06, 2013, 09:59 AM
nasa range naman ang 11.5% p.a. at 15 years sir. okay yan. tanong ko lang sir kaya mo ba refinance yan ng 3-5years lang? kasi sir mabibigyan ka ng mas mababang interest rate kung mas maiksi


casanova

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Reply #2 on: Nov 06, 2013, 10:49 AM
11.5% fixed for 15 years ok na yan, you have to add to your computation cost of refinance may mga charges din yan. tama si buboy kung mga 3-5 years you can get as low as 7% ngaun


minero

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Reply #3 on: Nov 06, 2013, 12:57 PM
^^
option 2 --- shorter term. mga 5 years. would it be wise? at gusto kong ilipat sa bank na mas malapit sa location namin.

thank you po sa mga replies.


kiplinger

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Reply #4 on: Nov 09, 2013, 02:11 AM
I've had a mortgage for 12 years on a 15 year tenor. Never had to pay adjusted rate after fixed rate expired. Call their customer care service or write the people assigned in consumer loans. If you've been a diligent payer there's no reason they can't give you a lower rate. My loan annually reprices at about 10.5 to 11.5%. You can easily shave off 2 to 3% off that with the first letter/call. You can shave off more if you know somebody in the bank.


minero

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Reply #5 on: Nov 09, 2013, 08:00 AM
I've had a mortgage for 12 years on a 15 year tenor. Never had to pay adjusted rate after fixed rate expired. Call their customer care service or write the people assigned in consumer loans. If you've been a diligent payer there's no reason they can't give you a lower rate. My loan annually reprices at about 10.5 to 11.5%. You can easily shave off 2 to 3% off that with the first letter/call. You can shave off more if you know somebody in the bank.

thanks. a good compromise between me paying the whole principal at once and 15 yrs 11.5% interest agreement.
ngayon, kailangan kong maghanap ng tamang paraan para ako mapansin ng bank.


INDO

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Reply #6 on: Nov 09, 2013, 09:13 PM
para sa akin, focus on option 3. targetin mong mabayaran lahat ng loan mo around 3-5 years from now para maka save kahit papaano  :watchuthink:




freefront

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Reply #7 on: Nov 10, 2013, 02:11 AM

Quote
I have a housing loan (condo unit) @ 2.5m 15yrs 11.5% interest rate per annum. The loan is on its 4th year this month.

1. Though 11.5% is the normal interest rates, some people tell me its too high. Any suggestions how can I approach the bank to ask for a lower interest?

If the mortgage was made with the assistance of your real estate agent, I'm supposing that at that time, you went for convenience and didn't use your own suki bank? If your lender is any better than your suki bank, you might want to start showing "face" at their place. Transfer your funds. Invest in their UITFs and make refgular deposits. Then, ask around for lower rates. Get somebody important to talk to at your lender bank. Tell them the lower offer rate from another bank, that you will still come out ahead even if you factor in the additional costs to transfer that loan. They will look at your financial records. You want them to see a thing of beauty  :D

Quote
2. In case 1 fails, i am thinking to refinance the loan. I would like to transfer the loan to another bank which has better services for me. Is that possible? Also, i may get lower interest.

Are you willing to undergo the gasgas to the nerves, invest time, pay penalties and new fees and be very nice most times?
 example: OFW on vacation,4.5M loan and about to be repriced from 10% to 11.5% p.a. He repeated these arguments via letters, emails, phone calls and personal visit to his branch manager. "Why?" wala naman daw naiba. Pays on time, bulk of peso and dollar savings stayed in that bank, inflation is even lower. Why? He doesn't get a good answer and be made to feel understood, he and his loan and all his money held by his family will leave this bank. They made a deal at 10.5%.
He liked the branch manager. Because from day one, he got respect when he walked in with his bin laden hair and face carpet, cargo shorts, white t-shirt and nike sandals   :hihi:
Quote
3. An option to pay the whole remaining principal. But this will deplete all my resources.

This is coming from American financial advisors, but they make perfect sense.

A real estate asset is NOT LIQUID, That fact in face of a 4 yr. old mortgage, spells disaster to your financial well-being. Kasi, baka interest pa lang lahat ng binayaran mo. Wala ka pang equity. Therefore, not possible to use as a prenda in an emergency loan.They even had a huge advantage when that advice was given---nasa 3-4% p.a. lang ang rate nila. And the Americans can claim as tax deductible all interests paid on their mortgage loan # don't know about PHL yet. And predictably, they would tell their clients to find a low risk investment that gives a higher return than the 3% mortgage interest, and should be LIQUID. Sa kanila dati, a tax-exempt municipal bond can give something like 4%. Joe still comes out ahead by 1%. And he gets to keep his peace of mind in case there is a medical emergency or the car dies.
Supposing there is still 2M left on your loan,that 1% difference would be 20,000 annually in income from bonds, and you get to walk around like da man for keeping in mind the welfare of the family(taking out all the complexities happening in a loan yearly#yes.i.do.not.like.math).

Dito sa atin yata, only investments with equities in it can beat your 11% p.a. rate, which is not advisable at all. Fixed rate VS. volatile source.

My turn:
Your thoughts? Did I give something relevant? Was the way i said it even comprehensible?

Thank you.


freefront

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Reply #8 on: Nov 10, 2013, 02:20 AM
Pahabol. if you are bothered by that 15 years tenor, and you don't see your cash flow contracting for a few years, why not arrange for a balloon payment( say 1M out of 2M na balance) para mas maiksi ang number of years to pay but the same amount of amortization monthly( tipid sa interest but you miss out on investment returns---> esp. if you are a wunderkind at stocks)


bj71

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Reply #9 on: Dec 10, 2013, 12:28 AM
ps bang 10 yrs - 8% per anum
               15 yrs  - 9% per anun


24bit

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Reply #10 on: Jan 10, 2014, 08:57 PM
or make it yearly instead of fixed. Nowadays, interest rate is less than 6% :watchuthink:


docheo27

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Reply #11 on: Jan 13, 2014, 12:36 AM
@24bit who's giving less than 6% and in what term?

I will have a condo unit also that I need the bank to finance this coming March though the developer assigned to to China Bank, someone here got experience with this bank?

Which bank is offering the best deal in housing loan? Care to help  :help:

BTW I plan for the 5 yrs fixed.

TIA



 


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