Hi, MY house loan is RM400k and paying 2k/month for 35yrs

Semi-Flexi Loan

Let's say if i pay the loan like 3k/month from the 1st repayment onwards. What the profit? Mean my lenght of mortgage will be reduce? Or what?

Reduced to 18 years

I tried on excel-loan amortization. Max. loan tenure up to 30 years only.

+/- i think you can save half of the loan interest if you are paying extra 1k every month.







This post has been edited by rapple: Nov 13 2014, 05:41 PM

So semi-flexi can pay extra and it auto reduce interest?

By increasing monthly repayment amount, the extra should be used to offset the principal. With the reduced principal, the next interest cycle will be lowered. The cycle will repeat itself.

See attached.


Attached File(s)
 400k_35years.zip ( 10.64k ) Number of downloads: 35

save alot on interest.

but i also wanna know , if pay more, the tenure reduce automatic? like at the 18th year, then bank tell u finish paying already?

So many people talk differently, to know the actual, do check the S&P's document.
For rm1000 monthly payment, paying rm2000 may not reduce the principle and may "float" around for no reason.