Housing Loan Rate

[slkmclaren]

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I don't know if this is the right category for this post. Mods, please feel free to move it if needed.

Fact:
I have a housing loan in Union Bank for 15 years and I have already started paying them for 3 years already. The interest rate on the first year started at 10% fixed (fixed on the 1st year only) and every year it keeps on increasing. This coming April my interest rate will be at 11.75%.

Question:
Is there any chance that the interest rate will decrease? What are the factors that influences the housing loan interest rate.

If you can give any information on this, it's very much appreciated.

Thank you,
Reymund

[cebu.opportunities]

I'm not familiar with Union Bank's housing loan rates and what are their terms and conditions.

Interest rates are affected by our economy. Since, you have decided to have the interest rate fix for only a year, you will follow the fluctuating rates for the succeeding years. To have the best answer with your concern, you may directly ask the relation manager or bank personnel in charge for loans whether you can have it fix for the entire term.

Most banks offer dimishing interest and advance payment may mean that you are more likely to pay lesser interests.
Diminishing interest does not mean that the rate will decrease. The rate is still the same but it's value will diminish as the principal amount (loan) lowers down.

[spartan301]

I don't know if this is the right category for this post. Mods, please feel free to move it if needed.

Fact:
I have a housing loan in Union Bank for 15 years and I have already started paying them for 3 years already. The interest rate on the first year started at 10% fixed (fixed on the 1st year only) and every year it keeps on increasing. This coming April my interest rate will be at 11.75%.

Question:
Is there any chance that the interest rate will decrease? What are the factors that influences the housing loan interest rate.

If you can give any information on this, it's very much appreciated.

Thank you,
Reymund

Thats overkill!!! Rates right now are hovering between 5.5 - 7% annual fixing... Bsp just lowered their tbill rates so rates should go down... Ask them how much thier sda deposit rates now and last month or hier time deposit rates... If it went down, then yur housing rate should also go down...
If your a prompt payer with no delays in payment, they should lower the rates...

[cebu.opportunities]

Spartan is right. If we are to ask other banks' rates, most went down though its decrease is not that significant but still a 0.5% decrease would mean a lot for we are talking big amount here. However, rates are not only based on our economy but also from other factors. One of which is the loan term. For 15 years term, I guess 11.75% play similar rates with other banks.

BDO, BPI, Pag-ibig charge 10% interest p.a. for 10-yr loan term.