1. What is the Pag-IBIG Housing Loan?

The Pag-IBIG Fund Housing Loan is an affordable home financing program for Pag-IBIG Fund members. It offers low interest rates, flexible payment terms, and various loan packages to suit different housing needs.

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, including both principal and interest.

3. Understanding Loan Payments

Details: Your monthly payment remains constant, but the proportion going toward principal vs. interest changes over time (more interest at the beginning, more principal at the end).

4. Using the Calculator

Tips: Enter the loan amount in Philippine Pesos, the annual interest rate (without % sign), and the loan term in years. The calculator will show your estimated monthly payment, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What are current Pag-IBIG interest rates?
A: As of 2023, rates range from 5.375% to 10.5% depending on loan amount and term. Check Pag-IBIG's official website for current rates.

Q2: What is the maximum loan amount?
A: The maximum loan amount is ₱6 million for socialized housing and ₱8 million for regular housing, depending on your capacity to pay.

Q3: What is the maximum loan term?
A: Pag-IBIG offers terms up to 30 years, depending on your age at loan application.

Q4: Are there other fees besides interest?
A: Yes, there are processing fees, mortgage redemption insurance, and other charges. These are not included in this calculator.

Q5: Can I pay extra to reduce my loan term?
A: Yes, Pag-IBIG allows advance payments which can reduce your total interest and loan term.