Thanks to this informative blog, I now understand the reason why almost all of my monthly payments j

How to generate the Monthly Amortization Schedule. The two components that go into the monthly amortization: interest and principal dues. As the title of this article says, “How t3 to save on your loan payments.” t3 The Mortgage Loan Calculator
Important Note When Using The Mortgage t3 Calculator: When you click on the Calculate Button, the result displays in a pop-up window. To close the window, simply click the Close Button located at the upper right corner of the resulting pop-up window.
As you can see, the tool has some default values already and if those values perfectly match your loan, all you have to do is click on the Calculate Button to show the results. But for most of us, our cases are of course different from the default example.
Let’s say your property costs P 2,000,000 and you are to put 20% down payment up-front — that should be P 400,000 out of your pocket. Furthermore, let s say that the going interest rate in the market is 10.5% per annum and that you plan to pay the PhP 1,600,000 loan in 3 years only. From here, you want to determine the following: Monthly Amortization Amount Monthly Amortization Schedule
If you have entered the right values from the calculator shown above, you should get the monthly amortization at PhP 52,003.91 and that the total amount paid in interest for the whole 36-month duration of the loan should be PhP 272,140.75 (see at the bottom part of the resulting Amortization Table).
If your results don’t match with this one, please do it all over again until you get it right. This is a very powerful tool of analysis right at your disposal. More On Interest and Principal Dues
In other words, the amortization consists of two components, namely: the principal due and the interest due. Each payment t3 that you make against your scheduled amortization, a portion of it goes to the principal payment and the other portion goes to the pay the interest.
From the example t3 above, your first monthly payment of 52,003.91 t3 pays for the PhP 14,000.00 interest and the PhP 38,003.91 principal. On the second month, PhP 13,667.47 is allocated for the interest payment and PhP 38,336.44 for the principal payment. How To Save on Your Loan Payments
Have t3 you noticed that at the early part of the schedule that’s t3 the first few rows of the tabular data so much goes into the interest payment and only a small portion goes into the principal payment? And at the later stage of the schedule, a small amount is now allocated to the interest while the bigger part now goes to the principal.
This is always the case for mortgage loans: it follows the Declining Balance Model. That is, assuming your payments are religiously made on schedule, the principal balance is reduced t3 over time and the next schedule is also smaller since the interest is always applied on the remaining balance.
There are methods that help you determine the effects of advanced payments at any period of your amortization schedule, but we won’t discuss that in this article yet. Suffice it to say, that making advanced t3 payments is almost always to your advantage. t3
Wow, this loan calculator you just presented is so amazing! I tested it on a 20-year loan term, and the numbers are really t3 showing — how much goes to the interest and how much goes to the principal.
Thanks to this informative blog, I now understand the reason why almost all of my monthly payments just go the loan interest.I’ve been paying more than P8k for 7 months now, and out of the P56k only P5k has been deducted from my original loan. I’m now considering on paying a (way) higher amount, t3 but I’m afraid that it might just end up being “eaten” by the interests. Since I heard that my uncle paid P200k one time before, and out of that amount, only around 20k was deducted from the original loan. Is this really possible? t3 If you have any advice, please t3 do tell. Thanks for your time, and keep up the good work!
I appreciate your comment. As to your uncle’s case, I’m not sure what happened. But if you should pay that much, see to it that you first request a Statement of Account so that you will know your current balance. Also after paying that amount, keep the Official Receipt. Then ask for another t3 Statement of Account just to make sure that your payment has been posted.
Hello admin, tanong ko lang po about sa mga bahay na pa-assume already under pag-ibig. Kung hihingi ang seller ng let s say 300K para ma-assume ko ang bahay, pwede ko ba itong isama sa amount na iloan ko sa pag-ibig? Para ang Pag-ibig na ang magbabayad sa kanila ng cash na 300K?
Ang tanong ko po, kailangan pa rin ba na patuloy ako magbayad t3 buwan-buwan ng Monthly Membership Fee kasabay t3 ng pagbabayad ko sa aking monthly amortization for Housing Loan? CONFUSING PO Di kasi naniningil sa membership fee since I started the housing loan on April 2003 pa, baka magkaproblema a