"Home is a place you grow up wanting to leave, and grow old wanting to get back to."
- John Ed Pearce -
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Mortgage or Home Loan Calculator
As a buyer of real estate, you are most like to pay the property through a loan secured from a bank or other financial institution. One of the first things to consider is knowing how much you are willing and actually capable of spending to pay for the property.
The Mortage Calculator shown below is a handy tool that can help you determine the monthly dues (amortization) depending on the parameters that you enter:
- Selling Price of the Property : This is most likely the contract price of the home or real estate property. Please enter the amount in Peso.
- Percent Down Payment : The standard is 20%, but you might want to try a bigger value. A bigger down payment means you get a lower loan amount, and therefore saving on interest payments.
- Length of Mortage : How many years do you want to pay the loan. Do you want to carry on a debt up to 25 years? Can you lower it to 3, 5 or 7 years? A shorter loan term is means you save on interest payments, but it could also take a toll on your budget. A long term loan is allows you to pay it lightly, but in the long run it is also much more expensive.
- Interest Rate Per Annum : You have to check with the financial institution with this one. In general, the going rate for most banks in the Philippines is 11% per annum. Real estate developers may also offer In-House Financing at a higher rates from 18% to 21% per annum.
After filling up the form fields with the right values, you are now ready to see the results. Simply click on the "Show Computation" Button and that's it. You will see the following results:
Mortage Computation Summary- Down Payment amount expressed in Peso.
- Amount Financed. This is the amount of loan take out also expressed in Peso.
- Monthly Amortization. This is the monthly payments necessary to cover your loan.
We strive for simplicity here elemitating the computation for taxes and/or insurance.
A Monthly Amortization Schedule will also be displayed showing the details on how much goes to the interest payments and how much goes to cover the principal. The loan is structured such that the monthly amortization is uniform and equal with declining interest and increasing principal payments.
The tool is really easy to use. Please be guided.
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