1. What is the Pag-IBIG Home Loan?

The Pag-IBIG Fund Home Loan Program is a housing loan program offered to Pag-IBIG Fund members for the purchase or construction of a residential unit, home improvement, or lot purchase.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment
• \( P \) — Loan principal amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over its term.

3. Understanding Loan Payments

Details: Each payment consists of both principal and interest. Early in the loan, most of the payment goes toward interest. As the loan matures, more of each payment is applied to the principal.

4. Using the Calculator

Tips: Enter the loan amount in PHP, annual interest rate as a percentage (e.g., 6.5), and loan term in years (up to 30 years for Pag-IBIG loans).

5. Frequently Asked Questions (FAQ)

Q1: What are current Pag-IBIG interest rates?
A: As of 2023, Pag-IBIG offers rates as low as 6.25% for loans up to PHP 6 million, depending on loan amount and term.

Q2: What is the maximum loan term?
A: Pag-IBIG offers loan terms up to 30 years, depending on the borrower's age and capacity to pay.

Q3: Are there other fees involved?
A: Yes, there are processing fees, mortgage redemption insurance, and other charges not included in this calculator.

Q4: Can I prepay my Pag-IBIG loan?
A: Yes, Pag-IBIG allows prepayment with no penalties, which can significantly reduce total interest paid.

Q5: What loan amounts are available?
A: Pag-IBIG offers loans from PHP 300,000 up to PHP 6 million, depending on membership status and property value.