Mar 7 2012, 09:48 PM
QUOTE(macong @ Mar 10 2011, 11:10 AM)
Hi,
Does any one using this loan package. Pls share some light to me. My main concern is the advance/prepayment. Let's say mthly installment is RM1k, and I pay RM1.5k every mth to the loan a/c. Does the RM500 will deduct from the Principal amt , then reducing the interest charge?
I called up two mortgage officers.
One said"No", the extra payment will park in the a/c and utilise as a mthly installment when due. Notice has to be given to bank if want the extra payment to be deduct the principal. She advise me to take up the full flexi mortgage loan.
The other one said YES, the advance payment of RM500 will be deducted to principal, hence reduce the outstanding amt and the interest rate chg, automatically done in the system. She is not advise me to take up the full flexi as there is a mthly charge of RM10.
So, which one is correct ah? I also blurr blurr now.
p/s: Does the full flexi calculation of interest is the same with the conventional loan when there is an prepayment? Anyone know?
Regarding your question, "Let's say mthly installment is RM1k, and I pay RM1.5k every mth to the loan a/c. Does the RM500 will deduct from the Principal amt , then reducing the interest charge?"Does any one using this loan package. Pls share some light to me. My main concern is the advance/prepayment. Let's say mthly installment is RM1k, and I pay RM1.5k every mth to the loan a/c. Does the RM500 will deduct from the Principal amt , then reducing the interest charge?
I called up two mortgage officers.
One said"No", the extra payment will park in the a/c and utilise as a mthly installment when due. Notice has to be given to bank if want the extra payment to be deduct the principal. She advise me to take up the full flexi mortgage loan.
The other one said YES, the advance payment of RM500 will be deducted to principal, hence reduce the outstanding amt and the interest rate chg, automatically done in the system. She is not advise me to take up the full flexi as there is a mthly charge of RM10.
So, which one is correct ah? I also blurr blurr now.
p/s: Does the full flexi calculation of interest is the same with the conventional loan when there is an prepayment? Anyone know?
I'm UOB mortgage specialist. For clarification, it will NOT deduct from the principal amount. Unless you want to do so, you have to give branch a notice. Therefore, the extra payment you have paid is NO LONGER can be redrawn. Meanwhile, if the extra payment of RM500 that you banked in to loan account. The interest will be charged based on outstanding balance, which means, if your loan is RM100k, extra payment of RM500 deposited into loan a/c, interest will be charged based on loan amount of RM99,500 (daily rest)...and hence, the RM500 CAN BE redrawn. And of course, interest charged is reduced. Get clearer picture?
This post has been edited by mattyl: Mar 7 2012, 09:49 PM
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