Dec 7 2009, 01:08 PM
QUOTE(junior @ Dec 6 2009, 10:44 PM)
Plan to get a housing loan of RM 150K at interest rate of 3.8. Daily rest calculation. Can pay extra without incurring penalty. Extra payment will always reduce principal.
I've shortlisted 3 options:
(Tenure / Monthly payment / Total Interest)
5 years / RM 2,748.96 / RM 14937.64
7 years / RM 2036.54 / RM 21069.39
30 years / RM 698.94 / 101616.97
Interest rate = BLR 5.6 - 1.8 = 3.8
I'm able to pay RM 2036.54 monthly.
Questions:
1. Which package should I choose?
2. If I go for 30 years option and if I pay RM 2036.54 monthly, will the loan finished within 7 years and with the same total interest? Based on the daily rest calc etc as stated above. Reason being for going for 30 years package is so the monthly installment is lowered to RM 698.94 thus letting me to get loan for 2nd house etc in the future.
3. If I have RM 20K cash, should I dump in to reduce the principal or use it to buy 2nd house? With current BLR - 1.8 = 3.8 and investment rate @ 6%, should I pay my debt or use the $ to invest?
4. Should I prepay more monthly eg. taking 30 years loan at RM 698.94/monthly. I'm able to pay RM 2036.54. The question is should I pay more or channel the money for investment?
Thanks sifu!
If you plan to stay in the house, as you can afford it. It's wise to take the 7 years tenure.I've shortlisted 3 options:
(Tenure / Monthly payment / Total Interest)
5 years / RM 2,748.96 / RM 14937.64
7 years / RM 2036.54 / RM 21069.39
30 years / RM 698.94 / 101616.97
Interest rate = BLR 5.6 - 1.8 = 3.8
I'm able to pay RM 2036.54 monthly.
Questions:
1. Which package should I choose?
2. If I go for 30 years option and if I pay RM 2036.54 monthly, will the loan finished within 7 years and with the same total interest? Based on the daily rest calc etc as stated above. Reason being for going for 30 years package is so the monthly installment is lowered to RM 698.94 thus letting me to get loan for 2nd house etc in the future.
3. If I have RM 20K cash, should I dump in to reduce the principal or use it to buy 2nd house? With current BLR - 1.8 = 3.8 and investment rate @ 6%, should I pay my debt or use the $ to invest?
4. Should I prepay more monthly eg. taking 30 years loan at RM 698.94/monthly. I'm able to pay RM 2036.54. The question is should I pay more or channel the money for investment?
Thanks sifu!
If you were to rent it out, you should take the 30years tenure as you can cover it up with the rent.
^that would answer which package you should choose.
2. If you signed the required papers that states that the loan taken RMxxx, repayment within xxxmonths. Then, sure the loan will finish without any other interest.
3. It would be a good option to pay high downpayment as your monthly payment would be drastically reduced. If you plan to buy another house, you should perhaps you that cash as an investment.
4. This is entirely up to you. If you are gonna live there, the faster you pay it off, the better you would feel, as it's all about financial security.
If you are still young, it would be advisable to take the 30years tenure.
Quote
0.0146sec
0.85
6 queries
GZIP Disabled