Dear all, I hv gotten two offering at the moment:
i) LA xxxK + MLTA 30yr 25K with Yr 1-5 @ -2.0% & thereafter -2.4% *

ii) LA xxxK + MRTA 30yr 11K with Yr 1-6 @ -2.1% & thereafter -2.3% **

* MLTA 30yr 25K fully refunded upon maturity
** MRTA 30yr 11K burnt upon maturity
n/b1: Both MLTA/MRTA diluted into my loan
n/b2: Loan amount (LA) is same

Which one is more worthy to be considered? Which one would you take and why?

A noob in this, very confusing now , appreciate your input, Thank you

I will go for package no.2, cause I will not push my loan tenure to 30 yrs, wil try to finish up the loan as soon as possible, so the early lower interest and lesser mrta will certainly help.

Take 5-10 years MRTA, then after 5-10 years, if you still want to hold on to the property, take more MRTA.

for option 1, after 30 years of inflation, how much do you think RM25k is going to be worth?

for me, option no1 will be better a lot.
Reason:-
MLTA,
Transferable,level cover and full refund when no nothing happen. Even touch wood somethings bad happened, the coverage also higher then MRTA no matter which year.

Rates,
Option 1, 0.1% higher for 5years but 0.1% lesser for 25years.
VS
Option 2, 0.1% lesser for 5years but 0.1% higher for 25years.

Thank you for reply
My primary approach is to refinance to the maximum so that I can cash out for other investment, how do I correlate my approach to the offered packages or they are two different things?

This post has been edited by n0v1ce: Oct 7 2009, 10:54 AM

Both plan not worth considering. Take out MRTA/MLTA and get standalone plan. If you factor in the insurance to the home loan, you be paying interest for them for next 3-5 years whereby your home loan principal still remains at 100%

To me MRTA/MLTA is a must as I am a breadwinner

MRTA/MLTA is important. You can get them separately from insurance company. My point is that you do not add these into your home loan.

Are you buying for Investment (Rental or Cap Appreciation?) or for own stay? Different objective will have different insurance needs

Advice noted. Cash on-hand is the king to me now

For live-in purpose; it's a refinancing of my existing house in order to get better rate and some cash

Anymore advice? I will have to get back to them as the offer letter is only valid for 14-days, Thank you

By the way, do you think that bank will further markdown the rate (> BLR -2.4%) in near future

Option 1, 0.1% higher for 5years but 0.1% lesser for 25years. Looking at the payment in long-term, its wiser to go for Option 1