The Pag-Ibig Fund has reduced its housing loan rates anew and is offering discounts to updated borrowers, based on the recent Circulars 229 and 230, a press release from the agency said.

Circular 229, known as the Good Payor Incentive Program, rewards housing loan borrowers who are paying promptly or those who pay on or before their respective due dates as indicated in the monthly billing statement.

Borrowers who shall pay on or before due dates shall be entitled to a maximum discount of two percent on the interest; provided, that the resulting interest shall not fall below the rates provided for in Pag-IBIG Fund Circular 219, which took effect on Nov. 23, 2006, the press release said.

All accounts that are updated as of June 1, 2007, shall be eligible for the discount provided that the updated accounts were taken out prior to Pag-IBIG Fund Circular 219 and have interest rates higher than six percent.

Borrowers with accounts that are one to six months in arrears as of June 1, 2007 shall be given until Dec. 31, 2007 to update their respective accounts. Once updated, the borrower shall be entitled to the discount on the interest for the applicable month that the account was updated.

Meanwhile, the Circular 230 amends the guidelines of Pag-IBIG Fund Circular 219, also known as the "Abot-Kamay Pabahay" Program. The significant amendment made under Circular 230 is the reduced housing loan interest rates for loans over P500,000, the press release said.

From the previous interest rate of 10.5 percent per annum, interest rate for loans over P500,000 to P750,000 has been reduced to only seven percent. For loans from P750,000 to P2,000,000, the interest has been lowered to 10.5 percent. Changes shall apply to all accounts with proceeds not yet fully released as of the same date.

With the seven percent interest rate, the monthly amortization will go down from P6,860 to only P4,990 per month for housing loan packages of P500,000 to P750,000.

Those who wish for more information may call Pag-IBIG Fund Bacolod Branch at tel. nos. 435-1129, 435-1137 to 40, 435-1149, 435-1205, and 435-1220 to 21 or visit their office at St. Francis Center, Araneta St., Singcang, Bacolod City.*

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