Scenario A
Standard loan
—
Total paid to the bank
PrincipalInterestInsurance
- Monthly payment
- Paid off in
- Total interest
- Total insurance
- Paid per peso borrowed
The short version
Same apartment, same bank, same rate. The only difference is sending extra money straight to principal every month and putting your bonuses (primas) toward the loan.
Green controls only affect the strategy. Same budget: you always put the same total in each month (payment + insurance + extra), so if the rate drops, the money the payment no longer uses goes to principal. Fixed extra: you always add the same extra on top of whatever the payment is. Extra payments go to principal to shorten the term. Ask the bank for "abono a capital con reducción de plazo".
| Standard loan | With extra payments | |||||
|---|---|---|---|---|---|---|
| Year | Paid | Interest | Balance | Paid | Interest | Balance |