Sep 14 2014, 11:55 AM
QUOTE(j.passing.by @ Sep 12 2014, 11:42 PM)
FOLKS,
When taking a housing loan, don't just compute how much you can spare on the monthly installment, without regards to the loan amount and the tenure.
Try to compute the total amount of interest to pay if you can varies the loan amount and the tenure. The difference in the total interest can be staggering.
As an illustration:
a) House value 300k. Loan 210k. Interest 4.45%. 20 years. Monthly installment 1323.
b) House value 300k. Loan 270k. Interest 4.45%. 35 years. Monthly installment 1270.
(B) looks more attractive... less downpayment... easier to pay...
How much are the total interests?
But how many of us can afford the 90K downpayment when buying a house?When taking a housing loan, don't just compute how much you can spare on the monthly installment, without regards to the loan amount and the tenure.
Try to compute the total amount of interest to pay if you can varies the loan amount and the tenure. The difference in the total interest can be staggering.
As an illustration:
a) House value 300k. Loan 210k. Interest 4.45%. 20 years. Monthly installment 1323.
b) House value 300k. Loan 270k. Interest 4.45%. 35 years. Monthly installment 1270.
(B) looks more attractive... less downpayment... easier to pay...
How much are the total interests?
» Click to show Spoiler - click again to hide... «
Nevertheless, I get your point on the total interest paid over 2 different loan tenure
Quote
0.0906sec
0.80
7 queries
GZIP Disabled