I need some advice fast. I've been approached by a bank on refinancing. I am currently on fixed home loan. After doing calculation, the salesguy told me that that I will save abt RM130 per mth from my mthly installment. However, I did not know that there is moving cost involved until today.

I have no experience on refinancing properties. I was told that by virtue of BNM's regulation, banks are no longer allowed to absorb this cost. Is this true?

Also, should I pay the moving cost separately or have it costed into the loan? I do not know what is the moving cost yet as the salesguy need to check for me.

How much is your fixed home loan rate?

BLR is on upward movement right now - you may be able to save RM130 now but you'll probably lose more in long term.

Since market's interest rate is considered low now, its better to be locked in @ a fixed home loan instead of a floating rate loan.

It is at 7.50%

That's a tad high. What's your loan amount and how many years left?

Approx 93k with 14 years left

So you're paying about RM896 a month now?

The rate they're offering now is BLR-1.15% or 4.90% flat?

u can do refinance now with much lower interest rate.
& if u hv to pay for moving cost, then u better take extra money from new loan to cover up the moving cost & others.

wht do u mean take extra money from new loan? cost it into the loan issit?

don't just look at how much it can save per month; see the overall savings on the interest payment for the whole remaining tenure.... hope this advice helps

u can do refinance higher than ur balance loan amount.
i'm sure ur property value is higer than b4, so u can apply for more money.

for example.

ur balance is 90k ...... property value 120k
so u can apply for 100k.
& i think with current interest rate, ur monthly payment still not much different or u can take more longer period

This post has been edited by bob: Jun 3 2010, 02:50 PM

I was offered 4.25%. I was quoted RM4k ++ for the moving cost...is this reasonable or too high? Is it true banks cannot absord this?

With this new figure in, my mthly payment reduction is really not that much but I guess every little bit of savings counts rite? Anyone to advise??