Loans & amortization

Amortization vs. teaser rates

A loan’s true cost shows up in the amortization schedule: how much of each payment is interest versus principal over time. Our general loan calculator builds a full schedule so you can see the payoff curve, not just the monthly installment.

Pag-IBIG housing loans use HDMF rules and posted rates; use the dedicated tool when you are modeling a home purchase under Pag-IBIG rather than a generic bank personal loan.

When comparing offers, normalize assumptions first: same principal, same term, and equivalent fee treatment. Without normalization, two offers can look cheaper simply because one hides costs outside the quoted rate.

Before you sign

Compare effective annual cost, fees, insurance, and prepayment rules — not only the quoted monthly payment. Credit cards and personal loans serve different jobs; the article on loans vs. credit cards summarizes trade-offs for typical PH use cases.

If income is variable, stress-test a conservative scenario where you only pay from your lowest expected month. Loans fail in weak months, not in strong ones.

A practical loan comparison checklist

Check the monthly payment, total payment across term, all one-time fees, recurring insurance, and pre-termination penalties. Review each item side by side before deciding.

If two options remain close, prioritize flexibility: prepayment without heavy penalties, transparent repricing terms, and realistic customer service channels when restructuring is needed.