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 Pay off housing loan earlier or not?

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3antz
post Apr 25 2014, 12:01 PM

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Hi all, does anyone know of a good ammortization calculator? It is loosely connected to this conversation thread. With an ammortization calculator you can easily see the difference and how much in your savings if you bumped up your repayment $. tqtq
aylwyn paul
post May 5 2014, 09:48 AM

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QUOTE(woodvill @ Apr 3 2014, 10:33 AM)
Last Saturday, i met one of my secondary school friend who currently working as financial planner. During our conversation, he mentioned about housing loan repayment. He told me sometimes it is not worth to pay off our housing loan in shorter time. When i heard of this, i feel confuse and curious. Isn't it the faster we pay off our housing loan, the more interest we can save?
So, i ask this question to him, then he said i am only partially right. Coz there is another factor that need to be considered which is inflation factor.
Oh MAN!! What was he talking about? i am just a normal person and know nothing about financial thing. Can any Financial Expert explain this to me? If not, i think i cant understand this even i think until my brain becomes burst rclxub.gif
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i advise you pay according to the schedule. never shortern the period , to avoid irb trap
wongmunkeong
post May 5 2014, 11:35 AM

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QUOTE(aylwyn paul @ May 5 2014, 09:48 AM)
i advise you pay according to the schedule. never shortern the period , to avoid irb trap
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what IRB trap are U referring to ar?
U mean to say ALL shortened payback periods are traps set by IRB? U sure?

If not - then why should one, in your words, "pay according to the schedule"
and not payback faster / shorten the mortgage loan & save on interest?
( AssUme-ing one has nothing better to do with the $ live investing or trading lar smile.gif )
cmk96
post May 5 2014, 04:13 PM

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If pay according to schedule. The total interest will be a lot. Of course it is better to pay off the loan asap.

the more u borrow, the more interest bank can collect. I oso plan to pay off my loan in another 3 yrs. Not worry of irb la. That is total bs.
cybpsych
post May 5 2014, 04:40 PM

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as long as the money/fund is clean, from reputable/legit sources (e.g. EPF or your bank accounts <- wage or business profits), and audited/declared, then there is no reason why IRB wants to drill you. sweat.gif

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