On Loans and Mortgages

I was walking down a shopping mall three days ago when a middle aged lady approached me and handed me a brochure. It was about a Subdivision being developed in the northern part of Quezon City.  Since I heard my sister-in-law’s interest in acquiring a house and lot here in the Philippines, I thought it’s very timely. The subdivision being developed is in the northern part of Quezon City, will took about one to two hours trip from the business centers.  The house is small as well as the lot.   But I was surprised when I saw the prices listed.  I didn’t know that a small two storey house and lot, located in the outskirts of the city could cost so high.  Hmnn.  it makes me think we are lucky to have acquired our modest dwelling on a low cost budget more than two decades ago. Our lot’s measurement although small as it is, is still big as compared to the current lots for sale.

Ours was mortgaged to SSS, payable for twenty-five years but we have fully paid it in a little more than a ten year period.  Thanks to its very affordable monthly amortization.  Normally, amortizations are computed and are supplied by the realtor selling the property.  But through my experience, I had no idea how they got to the amount of our amortization. We just accepted everything as it was. Nowadays, there is a loan calculator one can turn on to if ever we need to confirm a mortgage loan computation.  It helps us know our future mortgage expense. We just have to visit their site. Just that easy.