Sep 13 2012, 08:01 PM
QUOTE(kok_pun @ Sep 10 2012, 09:44 AM)
say you pay rm1000 per month, rm800 is for interest, rm200 is for principal repayment.
if you deposit additional rm20000 to capital repayment, your installment would still be rm1000, but your interest might be rm700 and you principal repayment will become rm300.then your outstanding balance will be reduced and you would save more on interest in future. (snow ball effect)
yes, there is an option to 'early settlement' part of the loan. but my advice to you is just pay more to your home loan. it will automatically be converted to advanced payment.
refinance is a completely different story. If you are talking about re-draw of capital repayment money, the bank will charge rm10
Sorry if I'm mistake. For my understanding if for capital repayment, I can save more interest, and might shorten my loan repayment period. I can withdraw them anytime in future with RM10 processing fee, and get the money after 3 working days.if you deposit additional rm20000 to capital repayment, your installment would still be rm1000, but your interest might be rm700 and you principal repayment will become rm300.then your outstanding balance will be reduced and you would save more on interest in future. (snow ball effect)
yes, there is an option to 'early settlement' part of the loan. but my advice to you is just pay more to your home loan. it will automatically be converted to advanced payment.
refinance is a completely different story. If you are talking about re-draw of capital repayment money, the bank will charge rm10
However, i don't understand what is the benefit if I make advance payment?
Quote
0.0209sec
0.46
6 queries
GZIP Disabled