Five Ways You Can Pay for Your Lumina Home

6 November 2020

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Written by: Ness Albito

Buying a house and lot involves a lot of decision-making, which is why many think of it as complicated or even exhausting. Once you have selected a location and a house and lot for sale that fits your taste and budget, you have to pay the reservation fee and also choose the best way to pay for it short-term or long-term.

While we have already established a safe and efficient way that you can pay for your reservation fee, homebuyers are presented with another set of payment or financing schemes by which they can settle the balance on their house and lot purchase.

Here are five (5) of financing options for house and lot buyers of Lumina Homes to help them decide which scheme best suits their paying capacity:

1. SPOT CASH PAYMENT

This is best suitable for homebuyers with sufficient cash to purchase a house and lot upfront. By paying through ‘spot cash,’ homebuyers get to enjoy bigger discounts and faster processing of documents.

2. DEFERRED CASH PAYMENT

This entails dividing the total price of the house and lot into terms (usually 2 years) without interest. Due to its shorter term as compared to other financing options, the monthly payment is expected to be bigger.

3. BANK FINANCING

The homebuyer decides to pay the remaining balance of the house and lot through a bank home loan. Once the homebuyer has finished paying the downpayment to the Developer, the bank will settle the balance of the property. In turn, the homebuyer will pay the amortization for his/her home loan to the bank.

In this case, the title of the house and lot property will be under the bank’s name as collateral in case of failure to pay the home loan.

4. PAG-IBIG FINANCING

By far the most preferred financing of Lumina homebuyers, pag-ibig housing loan offers longer payment terms and has less stringent requirements in order to be eligible for a housing loan.

To qualify, pag-ibig housing loan requirements: a homebuyer/borrower has full 24 months (or 2 years) contribution, has no existing housing or foreclosed property loans, that the computed monthly amortization cannot exceed 35% of the total gross salary, and that the borrower must be under 60 years of age upon application and under 70 upon loan maturity.

Some homebuyers choose to take out a 30-year loan, which is the maximum payment term, and then make extra principal payments along the way to shorten to shorten the mortgage term and save money on interest.

5. IN-HOUSE FINANCING

In-house financing can be an appealing option if the homebuyer does not like to deal with pag-ibig housing loan or bank institutions, or is incapable of qualifying for a quality home loan. However, choosing to pay in-house imposes a higher interest rate than paying through bank.

In summary, a short-term housing loan is equivalent to higher monthly payments but lower interest rates and lower overall cost to homebuyer.

Meanwhile, long-term housing loans are good for the budget, but may be costly in long haul both in interest rate and overall cost to homebuyer.