Sep 14 2012, 03:42 PM
QUOTE(kok_pun @ Sep 10 2012, 12:55 AM)
for interest calculation, yes you are correct! it will use outstanding balance minus whatever amount of capital repayment to calculate the interest.
Money parked under capital repayment is not directly used to reduce loan outstanding because there is an option to re-draw
just like any other banks, under flexi loans, say you have 100k outstanding and 50k deposit in current account. If you wish to refinance from this bank to OCBC, your redemption letter will state 100k instead of 50k.
I might sound a bit like a geek here, but if you play by the book, it is not directly settlement of loan outstanding, it is just a temporary direct reduction for interest calculation only.
If every month I pay extra house loan and should under 'advance payment' and this advance payment will direct deduct from my outstanding balance and save the interest?Money parked under capital repayment is not directly used to reduce loan outstanding because there is an option to re-draw
just like any other banks, under flexi loans, say you have 100k outstanding and 50k deposit in current account. If you wish to refinance from this bank to OCBC, your redemption letter will state 100k instead of 50k.
I might sound a bit like a geek here, but if you play by the book, it is not directly settlement of loan outstanding, it is just a temporary direct reduction for interest calculation only.
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