HF Freezes Bogeumjari Loan Rate for December

- Rates down to 3.00 %, depending on the product type and maturity.

- Borrowers should check available low-income household program or other preferential discount rates.

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) stated on Nov 26 that it retains the current annual interest rates for December on Bogeumjari Loan product, its long-term, fixed-rate mortgage loans.

Accordingly, the interest rates of u-Bogeumjari Loan and t-Bogeumjari Loan will range from 3.10%(10-year maturity) to 3.40%(40-year maturity), whereas Akkim e-Bogeumjari Loan interest rate will be applied with 3.00%(10-year maturity) and 3.30%(40-year maturity), 0.1% point lower than the other two loan types. The annual rates will be fixed throughout the loan period.

It should be noted, however, whereas Bogeumjari Loan with 10 to 30 years of maturity do not come with particular restrictions, the Bogeumjari Loan with 40-year maturity are confined to those who are 39 years or younger, or couples whose marriage registration date goes back to less than 7 years, or who are getting married within 3 months from application.

HF added, “The final rates by product and maturity after applying additional preferential or spread are sustained throughout the loan period. For more information on the terms or features of the loans, please visit HF website(www.hf.go.kr) or call HF Call-Center(1688-8114).”

“Furthermore, in general, longer maturity means less monthly repayment, but as longer maturity is applied with a higher base interest rate, the total amount of interest to be repaid during entire redemption period increases. Therefore, applicants should make a careful examination on their economic and financial situations before deciding taking out of the Bogeumjari Loan, the loan amount, a maturity period and a redemption method.”