1. What is the Pag-IBIG Housing Loan?

The Pag-IBIG Fund Housing Loan is a mortgage financing program for Pag-IBIG Fund members in the Philippines. It helps members finance their home acquisition or construction with affordable payment terms.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (PHP)
• \( PV \) — Loan amount or present value (PHP)
• \( r \) — Monthly interest rate (decimal)
• \( n \) — Loan term in months

Explanation: The equation calculates the fixed monthly payment required to fully pay off a loan over its term, including both principal and interest components.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps borrowers understand their financial commitments, plan their budgets, and compare different loan options before making a decision.

4. Using the Calculator

Tips: Enter loan amount in PHP, monthly interest rate as a decimal (e.g., 0.005 for 0.5%), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are current Pag-IBIG interest rates?
A: As of 2021, Pag-IBIG offers rates as low as 3% per annum for loans up to PHP 6 million under its Affordable Housing Program.

Q2: What is the maximum loan term?
A: Pag-IBIG offers loan terms up to 30 years (360 months), depending on the borrower's age and capacity to pay.

Q3: Are there other fees besides interest?
A: Yes, there are service fees, mortgage redemption insurance, and other charges that are not included in this basic calculation.

Q4: Can I prepay my Pag-IBIG loan?
A: Yes, Pag-IBIG allows prepayment with certain conditions. Early repayment may reduce your total interest cost.

Q5: How do I qualify for a Pag-IBIG housing loan?
A: You must be an active Pag-IBIG member with required monthly contributions and meet other eligibility criteria.