I, myself was brain washed and was slightly forced to take a housing loan. Though in the beginning I was hesitant and was trying to explain that it was still too early too soon but the point is clear and agreed to take a housing loan with the following reason.
1. I am taking a housing loan because I dont have savings.
2. I am taking a housing loan because it is better to have this long term loan through Pag-ibig at least I have a house I can call my own rather than renting and can never call my own.
These were all my reason why I took a long term housing loan through Pag-ibig. Are these reason valid? Of course they are VALID because they are true in all aspect. They will only become invalid when the question to ask is are you really ready to take that loan?
My reason for taking a housing loan are all valid but it leads me to my greatest mistake as well. I wasnt ready to take the housing loan. Now, before you commit the same mistake, here's what you should take in consideration first before even thinking of having a PAG-IBIG FINANCED HOUSING LOAN.
1. Emergency Fund - you should calculate your monthly expenses. From household expenses to expenses going, during and after work including your vices then whatever is the result multiply it by eight. Or the easiest way is your current monthly income times eight. Having an emergency fund will at least secure you to be able to have funds in any case something happen to you like you'll get sick or when you lost your job. Never ever take a housing loan if you dont have this 8-month emergency fund.
2. Savings - Aside from the emergency fund, check how much savings you have. The idea is to have at least 10% of the total contract price of the house you are planning to get. Once the house gets turned over to you, am sure there would be a lot of things you would wanna do, am sure you would want to remodel the house. So you would need at least a good amount of money to have everything situated.
3. Once you have your emergency fund and your savings. Check on the value of the house and check how much monthly you would be paying. It is highly important to save up at least 70% of the contract price ready before going agreeing to a loan through PAG-IBIG. Yes, going to a long term housing loan through PAG-IBIG may sound cheap and attainable but when you compute the 30 years times your monthly payment through them boy its double the amount. In my case, the contract price is 750K pesos, my monthly is ranging from 5.5K to 6K a month after 30 years I have paid PAG-IBIG 1.7 Million pesos or more. So it will sounf like I have given PAG-IBIG 1 million pesos after 30 years. So I would advise, to pay PAG-IBIG the moment your house gets turned over to you at least 50 to 70 percent of the total contract price and have them recompute to have a lower number of years to pay. Then pay off the remaining ballance at the earliest possible time.
If you have these 3, then by all means go get a house. Course it through PAG-IBIG for a lower interest charge and have a house of your own.
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