HF adjusts Bogeumjari Loan Rate for February

- 0.10%point increase for applications from Feb 1.

- Borrowers should check their eligibility for a low-income household program or other forms of a preferential discount.

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) stated on January 27 that it increases the annual interest rates by 0.10%point for February on Bogeumjari Loans, its long-term, fixed-rate, amortizing mortgage loans.

Accordingly, from the loans of which application is completed on Feb 1, the interest rates of u-Bogeumjari Loan and t-Bogeumjari Loan will range from 3.20%(10-year maturity) to 3.50%(40-year maturity), whereas Akkim e-Bogeumjari Loan interest rate will be applied with 3.10%(10-year maturity) and 3.40%(40-year maturity), 0.1% point lower than the other two loan types. The annual rates will be fixed throughout the loan period. 

HF said, “Affected by government bond rate increase and other upward pressures, the Bogeumjari Loan rates had to be adjusted. Those who complete the loan application by the end of January can be applied with the current rate before the increase.”

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 discount 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 amount, but as longer maturity is applied with a higher 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 a maturity period and a redemption method.”