25/06/2025
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 akoโฆ
"Why does it seem that our debt is not moving? โ
That's why I asked directly to the PAG-IBIG office. And that's when I knew the truth. ๐
โธป
๐ MONTHLY AMORTIZATION BREAKDOWNโฆSURPRISING โTO!
We were paying โฑ14,930.21 every month.
I thought a big part of that goes to the principal. But this is the actual breakdown:
-โฑ11,979.17 โ Interest
-โฑ235.80 โ Fire Insurance
-โฑ360.00 โ MRI (Mortgage Redemption Insurance)
-โฑ2,355.24 โ Principal ๐ญ
Yes. Out of almost โฑ15,000, only โฑ2K+ goes to the loan itself.
The rest? In the pipe. In insurance. His charges.
โธป
How to Compute Interest?
Letโs break it down:
โข โฑ2.5M loan
โข 5.75% annual interest
โข Divided by 12 months
๐ โฑ2,500,000 ร 5.75% รท 12 = โฑ11,979.17 Monthly Interest
That's why it takes so long before the debt goes down.
But hereโs the good news: may paraan para pabilisin โyan.
โธป
BAYARAN ANG PRINCIPAL, NOT JUST THE MONTHLY
If may extra cash, wag ka muna mag-upgrade ng phone. ๐
Go to the PAG-IBIG office, and say:
๐ โDirect to Principal Payment po.โ
Example:
- Monthly due: โฑ14,930.21
- Binayad mo: โฑ50,000
- โฑ14,930.21 = regular monthly payment
- โฑ35,069.79 = goes straight to principal
Meaning, your debt is getting smaller. Smaller interest next month. You can finish the loan faster.
โธป
๐ซ DONโT DO THIS IN PAYMENT CENTERS
If you pay โฑ50,000 sa Bayad Center, it will just cover the next few monthsโ dues.
No impact sa principal.
So yes, you are advanceโbut the debt is still slow.
โธป
Always monitor your loan online via Virtual PAG-IBIG.
They donโt send monthly bills, so ikaw mismo ang dapat mag-track.
โธป
My Realization:
If you don't understand how your housing loan works,
years will passโฆ and youโll wonder why youโre still paying a mountain of debt.
Kaya if youโre in the same boat as usโฆplease, learn from our journey.
Donโt just pay. Pay smart.
โธป
Financial literacy is not a luxury. Itโs survival.
Letโs share this with other homeownersโฆlalo na yung mga first time.
God bless to all who have a house but still have bills. ๐
We will be able to be fully paid ๐โ๏ธ