PMT Forum
How do you want to make money today?

Full Payment on House Purchase or Loan Amortization and Investing Funds?

Beannie · 8 · 3228


Would you pay a house in full or ammorticize it and invest the remaining funds?

Pay in full.
2 (33.3%)
Ammorticize and invest remaining funds.
4 (66.7%)

Total Members Voted: 6


  • Senior Member
  • **
    • Posts: 83
    • Likes Received: +0/-0
Hello. Ask lng po ako ng opinion ng mga experts dito sa PMT. If you have the funds to fully pay a house would you be doing that or would you opt to amorticize and invest the remaining funds for the meantime? Here are basic values for amortization:

Fund: 3M
Term (ammorticization): 96 months
Interest rate : 7% (for 60 months and to be restructured after)

Magkaiba kami ng opinion ng asawa ko. Lolz. He wants to fully pay and I want to do the latter (ammorticize and invest). So I decided to conduct a poll and see which idea is more popular with fellow PMT'ers. TIA.
« Last Edit: Sep 18, 2014, 12:07 PM by Beannie »


  • VIP 4500
  • *****
    • Posts: 4,857
    • Likes Received: +12/-0
^ If you will invest the portion that you may allocate in the purchase, How much do you think you can earn from your investment?

If the interest on the loan is 7% per annum, you need to earn at least 14% in your investment.  Can you do that?  Do you have sufficient skills without risking your capital too much?


  • PMT Jedi 2500
  • ****
    • Posts: 2,766
    • Likes Received: +3/-0
For me its an easy decision. Pay in full.


  • Senior Member
  • **
    • Posts: 99
    • Likes Received: +0/-0
masarap walang utang. pay in full then ipon na lang ulit


  • Newbie
  • *
    • Posts: 3
    • Likes Received: +0/-0
Sir Bauer, paano nyo po na-compute yung 14%, 7% plus inflation?

Somewhat the same dilemma po here..

May loan din po ako sa bank, nagbabayad monthly for 10 years (7%interest)..

Pwede ko pong matapos agad yung utang ko kung mag-aadvance ako ng payment for recomputation.. pero..

May mga banks po sa UITF na ang 5-year gain nila is around 20+%.. Paano po kung i-invest ko na lng din po na ganun long term? At least kikita pa rn po ako di ba? Tama po ba?  Or wag na lang at tapusin ko na lang muna yung utang ko?



  • VIP 4500
  • *****
    • Posts: 4,857
    • Likes Received: +12/-0

The 7% rate was given by the thread starter.  I believe it is the interest earn by the bank that the TS has to pay until the end of the loan.

The 14% rate of return is my own assumption.  It is not guaranteed so there must be a margin of safety.  All things remain equal.

The UITF performance of 20% per annum for a 5-year period is a record of PAST PERFORMANCE.  There is no guarantee on this rate.  You have to take a certain risks if you want to continue on this method. 

Bottom line, when the bank's interest rates becomes unbearable, be sure you are ready with CASH to advance the payments on the loan to reduce your vulnerability.  If you use all your spare cash to invest in UITF or mutual funds, then it is hard to rely on it if the market is on a down turn.
« Last Edit: Sep 19, 2014, 05:21 PM by bauer »


  • Newbie
  • *
    • Posts: 3
    • Likes Received: +0/-0
Noted sir! Thanks for your advice..


  • Forum Master 300
  • ***
    • Posts: 318
    • Likes Received: +1/-0
Depende sa price at fund ko.
Thread starter said, 3M ang fund nya.  3M din ba ang full price ng bahay? Less na ang discount, if paid in full?
Kung equal, I probably won't pay in full.  Mahirap ang walang cash on hand as fall back, specially kung may anak kang nag-aaral, etc.

Probably pay 2/3 of the house's price and amortize the rest.  Kung kayang ipasok sa pag-ibig ang balance, dun ko i-loan.  5yrs to pay lang para maliit pa rin ang interest.

The remaining cash would be for flexibility and probably buying furniture and home finishing and insurance of the house.

Kung significantly lower ang price ng bahay compared to my fund, then pay in full.


PMT Shoutbox

Refresh History
  • Post only questions or comments here. Advertisements NOT ALLOWED.
  • oragon: :applause:
    May 20, 2019, 03:53 PM
  • FutureGizmo: Thank you for reporting those spam posts, oragon! Spam posts now deleted.
    May 20, 2019, 01:59 PM
  • oragon: Admin kindly monitor some peps! posting and sharing inappropriate nude photos and website links
    May 20, 2019, 01:52 PM
  • @culinary10: Hello I am new here! Regarding sa bdo life insurance for 8 years, pwede pa kaya ma refund yung binayad ko na 50k last year? Gusto ko sana icancel kasi lack of financial na, last may 15 2018 po un nag start ako ng life insurance, pinili ko annually kaso etong may 15 2019 wala nako ma ipay so gusto ko sana icash out, may alam ba kayo kung pano marerefund?
    May 17, 2019, 07:56 PM
  • FutureGizmo: Hi Sonny, the posting issue is now resolved. Thanks for informing us! We're currently testing a new, mobile-ready theme so let us us know kung may problema pa sa Forum. :)
    Apr 04, 2019, 10:40 AM
  • sonny.wapak: Nakaka receive din ba kayo nito pag gawa ng new post? "Please try again. If you come back to this error screen, report the error to an administrator."
    Apr 03, 2019, 10:56 PM
  • leonine_zafiro: what product nun?
    Apr 01, 2019, 10:25 PM
  • dhondiex27: hi
    Mar 30, 2019, 10:55 PM
  • lusart: jayrob i agree 200%. hulog ng langit organico. legit na legit
    Mar 29, 2019, 09:08 AM
  • palemelch: Hi
    Mar 28, 2019, 04:08 PM
  • O.C.W._AK: Magandang Araw sa Lahat! Blessings! (",)
    Mar 28, 2019, 08:42 AM
  • thor15: hello everyone, newbie here
    Mar 25, 2019, 01:47 AM
  • captjaylo: present newbie here
    Mar 22, 2019, 10:06 AM
  • balboagilbert26: hello Guys .. Newbie here
    Mar 21, 2019, 10:55 PM
  • businesswoman2019: @jefsanity nag inquire na po ako pero di sila nagdidisclose. Yung branch po kasi na target ko, currently building pa.
    Mar 21, 2019, 04:27 PM
  • jefsanity: @businesswoman2019, much better inquire ka na lang sa admin nila.
    Mar 21, 2019, 01:51 PM
  • businesswoman2019: Hello! Any idea how much ang stall sa waltermart. 2m x 2m
    Mar 21, 2019, 08:28 AM
  • John Neil: Looking for an accredited iron foundry
    Mar 17, 2019, 03:19 PM
  • jayrob: Mark_Lee ung organico legit po yan..  Member din AQ..
    Mar 17, 2019, 12:57 AM
  • perlymelad: Hello po! Need advice, why my new MLM leaders failing?
    Mar 14, 2019, 08:51 PM
  • perlymelad: Present
    Mar 12, 2019, 07:53 PM
  • kennethmauricio: Hi saan po dito pwede mag post ng for sale properties?
    Mar 11, 2019, 07:58 PM
  • jefsanity: @mark_lee isipin mo anu passion mo at skills mo...
    Mar 11, 2019, 06:52 PM
  • sniperaj09: BAGO LANG
    Mar 10, 2019, 11:16 AM
  • mark_Lee: magandang investnent ngayon sa 30k suggest naman keo mga boss
    Mar 10, 2019, 03:07 AM
  • perlymelad: E-BOOK PO SIR @JEFSANITY
    Mar 09, 2019, 05:40 PM
  • perlymelad: @jefsanity Good Morning Po
    Mar 09, 2019, 05:39 PM
  • perlymelad: Good Day everyone
    Mar 04, 2019, 06:24 PM
  • jefsanity: anu ang small business na yan?
    Feb 28, 2019, 07:40 PM
  • perlymelad: Good Day Everyone
    Feb 28, 2019, 03:31 PM
    Feb 28, 2019, 06:58 AM
  • perlymelad: Present, 1st time po
    Feb 25, 2019, 06:17 PM
  • jd2281: newbie po
    Feb 25, 2019, 12:26 PM
  • ejllantino: present... 1st time
    Feb 24, 2019, 07:14 PM
  • rheiel: present. first time
    Feb 24, 2019, 11:04 AM
  • MELVIE: thanks po
    Feb 24, 2019, 12:50 AM
  • steph123: hello po, ask lang po, ilang months po ba ang hihintayin after mo ma process ang mga documents para maitama ang mali sa NSO?
    Feb 11, 2019, 03:13 PM
  • Deborah: newbie here.thanks
    Feb 08, 2019, 02:17 PM
  • marj0503: hello im newbie here
    Jan 31, 2019, 10:53 AM
  • yan24: any one here planning to start a tesda skill training center
    Jan 26, 2019, 12:07 PM
  • manzjon: Forex trading forum
    Jan 25, 2019, 02:16 PM
  • Lizette Ramos: Pwede po bang patulong... Maganda po ba ang gasul retailing business?
    Jan 24, 2019, 09:14 PM
  • Imnobody: Hi sino naghahanap ng casino financer dito?
    Jan 16, 2019, 09:59 PM
  • Odlanyer22: Good day!
    Jan 16, 2019, 09:55 PM
  • maryen: at kung sakaling may somobra sa food na nailuto.. dapat po bang bayaran ng client un .. or ipapa take mo na sakanila?...
    Jan 16, 2019, 03:52 PM
  • maryen: HI! GOOD DAY! newbiz lang po... question lang po regarding sa catering.. if may 50pax po ako dapat lang po ba na sakto ang serving ng food?
    Jan 16, 2019, 03:50 PM
  • mark_Lee: cno na nag organico dito scam po ba yun or legit
    Jan 09, 2019, 03:04 AM
  • kuray08: Have a Prosperous New Year to all..
    Jan 06, 2019, 09:27 PM
  • ethan: Sino po may auto supply business dito? How profitable po ba ito in terms of monthly income? Lalo na kung meron na one or two na competition.
    Jan 04, 2019, 11:34 AM
  • Niel Jhacoubs: HAPPY NEW YEAR!
    Jan 02, 2019, 04:37 PM