Never thought this post about my personal experience on PAG-IBIG housing loan would get plenty of attention from my followers. In fact, I received plenty of post comments and Facebook private messages asking me these following questions.
1. How to fully pay PAG-IBIG housing loan?
2. What is the process of paying the principal payment? Do they need some more requirements from me since I am an OFW. Pwde ko bang utusan ang sister ko?
3. Hi. Bakit same parin monthly amortization mo kahit nagbayad ka na 275k in your principal amount??
4. Hi po,kapag po ba nabayaran na in full ang housing loan, ibibigay kaagad ang title ?
5. Hi po, may minimum required amount po ba yung pwedeng ibawas sa principal?
So to sum it up, I created three videos as shown below. The first video shows how I personally pay off my loan in just five years while in the second video, I answered all the questions asked in this blog. Then, the last video shows the computation of how much goes to interest and principal amount each time we pay our monthly amortization. I also explain in detail how the number of years is being reduced if we pay in advance applied to the principal amount. For example, if your loan amount is 2 million, how much you will pay in advance to lower the interest and payment terms.
Video 1: How I Paid Off My Loan in Just Five Years
Video 2: How to Fully Pay PAG-IBIG Housing Loan Q&A.
Video 3: MUST WATCH!! PAG-IBIG Housing Loan Computation using A Loan Calculator
Watch this video on YOUTUBE, if the video is too small on your screen.
I hope you find this post helpful and enlightening, don't forget to share these videos with people who may need this. Thanks for reading.
Feel free to drop questions on my channel. I will try to answer the best I can.
47 comments
Hi there, It's nice to know your from Davao.
ReplyDeleteI have very recent problem with my pag ibing housing loan applied through Deca Homes. I was really pissed off that my payment term was 25years when I was expecting it to be 30 years since I chose the pag ibig financing option. The house was taken out already and transferred to my name. It seemed Deca homes is so helpless they can't undo the mistakes made by their people. and you are paying the mistake at their expense... I was not home my mom was the one who received the take out form because they created a fake SPA. My mother noticed the 25 years term and started to complain but the agent said so that I knew I will be getting the 25 years term..What the hell????? It defeats the purpose why I applied for Pag ibig Fund.
I am not concerned about the interests the would take forever. What made me so concerned is that Im gonna pay 8k plus monthly for a home that is not convenient, bad location and bad neighborhood. I decided not to pay. If pag ibig and deca will not ammend the mistakes or errors made by their people, I will no longer pursue the loan. What are your thoughts on this?
sus Deca pa. makahighblood na sila. I would never recommend Deca to someone I know.
ReplyDeleteHi First Time Mum, thanks for this very informative blog. I never thought nga if naa kay kwarta pwede na nimong ifully paid ang imong loan. Thanks so much!!!
ReplyDeleteHi there First Time Mum. How do you pay your principal amount in advance? Do you always go to the branch in order to pay? Or is it ok to just make an extra payment each month at a Bayad Center? Would they treat the excess amount as payment to the principal?
ReplyDeleteCan we get a reply on this.. I got the same question thank you
DeleteBased on my experience, you can pay principal amount anytime in the PAG-IBIG branch. If you pay extra, it will go directly to the Principal amount.
DeleteHi there, we have the same problem. I applied for 30 years Housing Loan worth 400,000 back in 2013. As of June 2016 I have Outstanding Balance of around 388k which drives me crazy. I want to ask if it is better to pay in advanced the principal amount or should I ask Pag-ibig to recompute my loan for 5 years? I dont want to pay housing loan forever. =(
ReplyDelete
DeleteI am no expert, but based on my experience, aside from monthly amortization, I also allotted some money to pay our Outstanding Balance to lower the interest rate and the number of years . Better ask some advice from the Pag-ibig staff near you.
Thanks
Hi Jenniffer, this is a very informative, enlightening and encouraging blog. I also did the same computation today and I was really depressed by the thought that the interest is higher than the actual contract price if you really go by the 30 years term. The sales representative who helped me today was honest and told me almost about everything including trying to pay the principal amount if I can. But I cant really make sense or didn't fully understand when he explained paying the principal amount but upon reading your story, it's all clear.
ReplyDeleteDue to this blog, I resolved I will still take the 30 years term as it's more realistic for me financial-wise and on a monthly basis but will save money along the years to pay the principal amount.
Thanks so much Jenniffer. I like your explanation, it's simple and easy to understand, and because it was really based on your personal experience. God's blessing and protection over you, your family and Davao!
Thanks for stopping by. Glad to hear this blog helps you a lot.
DeleteHello jennifer thanks for a very clear blog you've made. I have a question. How to pay a principal amount? Do they need some more requirements from me or personal appearance? Since in my case i am working abroad and i am just asking for my sister to pay my monthly bill in pag-ibig. I talked to her already to ask pagibig staff on how to pay my principal amount but i can't get a clear explanation from her. She's telling me to merge one of my previous company contribution to the latest one.????
DeleteI am very sure your sister is allowed to pay the principal amount without your appearance. But it's better to clarify it with PAG-IBIG since Duterte admin na ngayon baka may mga changes na. Based on my experience, no requirements are needed to pay the principal amount.
DeleteWhen i attended the seminar at pag ibig , the staff told me that i can i only pay for the OB, in bulk, ONCE. tama ba yun? Or is it a new policy? Pwede po bang as long as may savings ibayad na sa principal amt?
ReplyDeleteWhen ka nag attend ng seminar? Baka may mga changes na kasi new admin na ngayon..But based on my experience you can pay the principal slowly on top of your monthly amortization.
DeleteHi Ms. Jennifer,
ReplyDeleteThank you for this post. Actually I went to PAGIBIG Main branch in Shaw Bouelevard, Pasig City last week. To update my outstanding balance. I just like to ask, What is the process in paying the principal payment. I need to reduced the principal balance.
Thank you.
Hay salamat naliwanagan ako.nashock kasi ako bigla nung kinuwenta ko.Thank you so much for the info.
ReplyDeleteJust want to ask if the bulk principal payment could be done anytime?
ReplyDeleteOr only every anniversary of the loan?
you can do it anytime. I pay online using metrobank so on top of my monthly bill, I pay extra. here's a link, this can be useful.
Deletehttp://frugalhoney.com/2012/08/how-to-pay-your-pag-ibig-mortgage-online.html
Yes anytime...
DeleteHello there, I only leaned about it last month and I already started paying from the principal cost. You are right Pagibig personnel are not so keen on helping members with this idea.
ReplyDeleteHello jennifer thanks for a very clear blog you've made. I have a question. How to pay a principal amount? Do they need some more requirements from me or personal appearance? Since in my case i am working abroad and i am just asking for my sister to pay my monthly bill in pag-ibig. I talked to her already to ask pagibig staff on how to pay my principal amount but i can't get a clear explanation from her. She's telling me to merge one of my previous company contribution to the latest one.????
ReplyDeleteAko pinagbayad ng advance na monthly mortgage pra daw pwede ako mag excess payment sa principal...ikaw ba ganun?
ReplyDeleteI mean *monthly amortization
DeleteHi! Such informative and useful article! Thanks! For this line "I have been paying P5,620 per month for almost 4 years now, and I notice it will only deduct 500 plus from our principal amount every month.", may I know how were you able to know that the deduction to the principal is only 500? Seems they don't discuss these matters during signing up of NOA (unless probably the person loaning is very knowledgeable about loaning processes..) I just want to know if they will be providing documents where you can check these kinds of information - your outstanding principal, how much goes to the interest and how much goes to the principal.. etc. Where can we find these info? Thanks a lot in advance!
ReplyDeleteHello,
DeleteLook at your Statement of Account which is delivered by PAG-IBIG at your home every month. In your SOA you will see an Outstanding Balance noted there (say 650,000). Each time you pay the monthly amortization, observe how much has been deducted from your Outstanding balance. You will see that changes in the next SOA.
Another question... "A month later, what had been reflected on the SOA was another 2,400 plus was deducted from our Principal amount. Month by month, I noticed that the deduction was consistent as reflected again in the SOA." => Were you able to know how many years were deducted from the originally 30-year term given that you paid 275k (to be deducted from the principal)? Thanks in advance!
ReplyDeleteHi just wanna ask if after you pay 275k to the principal,did you monthly payment of 5,620 has decrease or it remains the same,,,tnx
ReplyDeleteHello,
DeleteThe monthly amortization remains the same.
Hi. Bakit same parin monthly amortization mo kahit nagbayad ka na sa principal amount?
DeleteHi. Bakit same parin monthly amortization mo kahit nagbayad ka na sa principal amount?
DeletePaying principal amount will not lower your monthly amortization. It just moves you forward in your amortization schedule.
DeleteSame pa rin ang monthly amortization mo dahil naka-fixed interest rate ka within that year. Pero as you reduce your Outstanding Balance for the Principal Amount, bababa din ang loan term mo until ma-pay off mo na yung loan mo. I think dyan papasok yung re computation. (Correct me if I'm wrong.)
DeleteAfter paying rhe 275k,did your monthly payment of 5,620 reduce ?
ReplyDeleteNo, the monthly amortization remains the same. Only number of years or loan term and ma-adjust.
DeleteHi.mam jen..what if na fullypaid ko na ang principal amount ng bahay...ang interest ba non automatic mwala? Or same parin..bbayaran q parin ang interest...30 yrs to pay kasi yong house loan ko.
ReplyDeleteyes wala ka ng bayarang interest kasi fully paid na
DeleteHi.mam jen..what if na fullypaid ko na ang principal amount ng bahay...ang interest ba non automatic mwala? Or same parin..bbayaran q parin ang interest...30 yrs to pay kasi yong house loan ko.
ReplyDeleteI have a PAG IBIG housing loan for almost 3 year na. Payment terms was 30 years (my mistake when I filled up the application form). Anyways I am able to pay the principal gradually! From 800k++ now it is 350k! My suggestion if you want to pay the Principal, go to any PAG IBIG office and mention "Excess to Principal", that word should reflect in your receipt.
ReplyDeleteGood to hear that your mortgage is now down to 350K. Konti nalang. BTW, can you share a picture of your receipt with the "excess to principal" written? Thank you.
Deletecan you pay in PDC or checks ? or cash lang kapag magbayad ka ng principal amount. thanks
ReplyDeleteHi Jenniffer, I'm an OFW in Canada and interested to know the ways on how to pay. Can my relative with special power of attorney pay on my behalf through his/her checking account or post-dated check. I'm planning to avail the Pag-IBIG housing loan and wants to know the process before I make an informed decision. By the way is there a way to subscribe to your blog through email? Looking forward for more posts, especially about Pag-IBIG loan tips.
ReplyDeleteHI, tanong lng po.. nagstart po ako nagbayad sa pag ibibg last dec.2016 and meron po clang pinpdala na Statement of account fr.dec.to january pero starting feb. up to now..wla n po akong nttnggp na letter from pag ibg. Anu po dapat gawin, since monday to sat.may pasok po s trabaho wla pong time pra mgpunta s branch.. thank u in advance s respond..
ReplyDeleteHi Ms. Jennifer, from 30 years down to how many years to pay nalang yung terms nyo po since you paid the 275k? Thanks po. ��. Is there a limit kung ilang beses ka pede magbayad sa principal amount? I heard kasi sa mga officemates ko parang 3 times lang pede magpa recompute eh.pls.advise. Thank you.
ReplyDeleteBased on my experience, no limit.
DeleteHi po,kpg po b nkbyran n fully housing ibbgy kgd ang title ..
ReplyDeleteIn my case, I had to coordinate with the house developer kasi naka pangalan pa sa kanila ang house sa title, so I need to transfer it in my name. The house developer must process your title and they will coordinate with PAG-IBIG. Please contact your house developer for the entire process.
DeleteHELLO PO,MERON PO DIN AKONG AMORTIZATION SA PAG IBIG .SISTER KO LNG ANG UMUHA AT HINDI RIN CLEAR SA AKIN ANG MODE OF PAYMENT PAPUNTA SA PRINCIPAL LOAN.ANG GINAWA SSTINUDY KO KUNG PAPANO SILA MG COMPUTE .GANITO YON HALIMBAWA ANG PRINCIPAL LOAN MO IS 972,000.X 6.35% INTEREST ANNUALLY =61,722.INTEREST NIAN IN 1YR SO IDIVIDE MO SA 12MONTHS ANG LABAS IS 5143.50 ANG INTERST.SO PINBAYAD K LNG NG 5620 A AMONTH .5620-5143=477 YONG LANG ANG NABAYD MO SA PRINCIPAL LOAN .KAYA MABAGAAL NATIN MABAYARN .KUNG GUSTO MONG BAYARAN NG MABILIS PUNTA KA SA MAIN OFFICE DOON MO IBAYAD ANG LUMPSUM PARA MABAWAS TALAGA SA BIG BALANCE OTHERWISE PAG SA PAYING CENTER LANG HALIMBAWA NGBAYAD KA NG 5MONTHS N 5620X5=28100 SAYANG ANG MAPUNTA LNG YAN IS 477 X5MONTHS ,BALI NGBYAD K LNG NG ADVANCE.
ReplyDeleteYAN PO ANG EXPERIENCED KO