25/06/2025
CTTO:
Why You Should Know This Before You Take A Housing Loan Of Pag-Ibig Fund
A few years ago, we finally took the big leap, we bought a house in a subdivision through PAG-IBIG Housing Loan.
First home. Dream achieved.
Pero after a few months of paying our monthly amortization, napapaisip na akoβ¦
"Why does it seem that our debt is not moving? β
That's why I asked directly to the PAG-IBIG office. And that's when I knew the truth. π
βΈ»
π MONTHLY AMORTIZATION BREAKDOWNβ¦SURPRISING βTO!
We were paying β±14,930.21 every month.
I thought a big part of that goes to the principal. But this is the actual breakdown:
-β±11,979.17 β Interest
-β±235.80 β Fire Insurance
-β±360.00 β MRI (Mortgage Redemption Insurance)
-β±2,355.24 β Principal π
Yes. Out of almost β±15,000, only β±2K+ goes to the loan itself.
The rest? In the pipe. In insurance. His charges.
βΈ»
How to Compute Interest?
Letβs break it down:
β’ β±2.5M loan
β’ 5.75% annual interest
β’ Divided by 12 months
π β±2,500,000 Γ 5.75% Γ· 12 = β±11,979.17 Monthly Interest
That's why it takes so long before the debt goes down.
But hereβs the good news: may paraan para pabilisin βyan.
βΈ»
BAYARAN ANG PRINCIPAL, NOT JUST THE MONTHLY
If may extra cash, wag ka muna mag-upgrade ng phone. π
Go to the PAG-IBIG office, and say:
π βDirect to Principal Payment po.β
Example:
- Monthly due: β±14,930.21
- Binayad mo: β±50,000
- β±14,930.21 = regular monthly payment
- β±35,069.79 = goes straight to principal
Meaning, your debt is getting smaller. Smaller interest next month. You can finish the loan faster.
βΈ»
π« DONβT DO THIS IN PAYMENT CENTERS
If you pay β±50,000 sa Bayad Center, it will just cover the next few monthsβ dues.
No impact sa principal.
So yes, you are advanceβbut the debt is still slow.
βΈ»
Always monitor your loan online via Virtual PAG-IBIG.
They donβt send monthly bills, so ikaw mismo ang dapat mag-track.
βΈ»
My Realization:
If you don't understand how your housing loan works,
years will passβ¦ and youβll wonder why youβre still paying a mountain of debt.
Kaya if youβre in the same boat as usβ¦please, learn from our journey.
Donβt just pay. Pay smart.
βΈ»
Financial literacy is not a luxury. Itβs survival.
Letβs share this with other homeownersβ¦lalo na yung mga first time.
God bless to all who have a house but still have bills. π
We will be able to be fully paid πβοΈ