Table for Monthly Amortization Factors

Factors to use for loan term 22 years to 25 years .

1. Amortization Factor 1 to 4 years
2. Amortization Factor 5 to 8 years
3. Amortization Factor 9 to 13 years
4. Amortization Factor 14 to 17 years
5. Amortization Factor 18 to 21 years
6. Amortization Factor 22 to 25 years

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How to use Table for Monthly Amortization Factors?

House and Lot Contract Price: Php 10, 000, 000.00

Payment Scheme: In-house financing (with diminishing method of computing monthly amortizations.)

Reservation: Php 100, 000.00

Downpayment: {30% of the Contract Price} – {Reservation}
= {30% X Php 10, 000, 000.00} – { Php 100, 000.00}
= {Php 3, 000, 000.00} – {Php 100, 000.00}

Downpayment    = Php 2, 900, 000.00

70% Balance payable in 25 years at 28% p.a. interest

Monthly Amort. = {70% of Contract Price} X {Amortization Factor}

Amortization factor for 25 years @ 28% p.a.  = 0.023356415 (refer to table above)

Monthly Amortization = {70% X 10, 000, 000.00} X {0.023356415}
= Php 7, 000, 000.00 X 0.023356415

Monthly Amortization = Php 163, 494.90 per month for 25 years @ 28% p.a.