PAG IBIG Repricing Period: What You Need to Know
Sa mga hindi pa nakapag housing loan at may plano na mag loan, meron tayong tinatawag na repricing period.
A repricing period, also referred to as cycle, tenor, or fixing period is the period for which the interest indicated will apply. After this period, interest rates will be adjusted or repriced. Pwede itong bumaba or tumaas depending on economic factors prevailing at the time of repricing. A repricing period can be as quick sa 1 year, 3 years, 5 years, or as long as 30 years.
So hindi ibig sabihin na kapag nakakuha ka nang loan na may 5% interest ay ganyan na talaga ang interest. Depende ito sa repricing period na gusto mo. Hindi ito kagaya nang salary loan or calamity loan na may fixed interest for the whole duration of the loan period.
If nag avail ka ng 20-year housing loan at may 5-year repricing option, ibig sabihin nito na you will pay a fixed interest rate for the first 5 years lang. Pagkatapos ng 5 years, pag ibig will evaluate and adjust the interest rate based on the prevailing market conditions it an apply nito ang bagong interest rate na babayaran mo.
So, ano nga ba ang mas mabuti? Yung madalas na repricing or yung mas matagal na repricing period?
So heto, ipapakita ko muna sa inyo kung ano ang mga interest rate per repricing period sa Pag ibig.
Now this computation is from the 2020 rate and after I verified with pag ibig, I was adviced that ito parin ang basihan sa interest rate until a new one comes.
So, if nag loan ka at gusto mong repricing period ay 1 year, may interest ito na pinakamababa at 5.375%. Pagkatapos ng isang taon ay inevaluate ni Pag ibig ang interest rate at mag iiba na ito. Pwede bumaba pa or tumaas.
If mag choose ka nang 3 year repricing period, ang interest at 6.125% at pagkatapos ng tatlong taon ay mag iiba na ito.
Same goes for 5 year repricing at 6.500%, 10 year repricing at 7.125%, 15 year repricing at 7.750%, 20 year repricing at 8.375%, 25 year repricing at 9.125% at yung pinakamatagal ay 30 years at fixed na yung rate na 9.750%.
So bakit nga ba mababa if shorter lang yung term at mataas if matagal ang repricing period?
Its all about protection and security. Kasi kahit low interest lang sa shorter period ay mag adjust agad si Pag ibig kung ano ang dapat na interest on a given period. Hindi nya ito magagawa if longer yung period kaya mas mataas ito para kahit na gumanda ang market ay hindi ito malulugi.
So ano ng aba ang repricing period na pipiliin mo? Remember, by choosing your repricing period, you get to protect yourself against fluctuations and also decide how long this protection will last.
If you choose longer repricing period
You can better manage your finances. If alam mo kung magkano ang babayaran mo buwan2x ay mas stable at alam mo how much yung ibabudget mo.
May sense of security ka rin sa longer period. If segurista ka, ayaw mo ng surprises at ayaw ma high blood sa kakabantay nang market conditions. Protektado ka against fluctuations sa mas matagal na panahon
Kampanti ka rin at nakakarelax dahil alam mung, kahit anung mangyari, hindi mag iiba ang interest rate mo.
Only choose longer repricing period if you’re confident about the country’s economy and the stability of prevailing interest rates.
If you choose SHORTER REPRICING PERIOD
Mas flexible yung interest rate mo kung ano nga ba dapat ang interest based on the current market conditions. If at the end of your repricing period and the market is good, your interest rate can be very good as well. Your monthly payments will be lower and more affordable.
Choose shorter repricing period if you’re 100% certain that interest rates will drop in the near future, or when the market is down and interest rates are bound to get lower and lower.
You can also potentially save more money on interest if you ride on the prevailing market economic conditions. Why? Because Pag IBIG is not allowed by law to increase the interest rate above 2%. Hindi kagaya nang banks which don’t have a ceiling on interest rates.
In the end, the answer to your question still belong to you and your financial capacity. Be a smart and responsible borrower lagi.
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OSHDP Affordable Housing Summit 2021: The Home EveryJuan Deserves
Welcome to Day One of OSHDP Affordable Housing Summit 2021: The Home EveryJuan Deserves!
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