Calling wild_card_my to advice

Refer to the table below

RHB has a good HL Calculator which is very transparent

The monthly installment is used to repay Interest first and the balance to principal

Just to add, in actual situation, the monthly interest will be based on the actual number of days but the RHB calculator is just based on annual interest / 12-mths for simplicity cos its difficult to calculate if follow actual number of days.



This post has been edited by cfa28: Dec 12 2014, 02:49 PM


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Current is between BLR less 2.2% to 2.4%, depending on loan amount and credit profile

You can request for your Bank to revise the rate bit they will probably go as low as between 1.8% to 2.0%

Good luck and do bear in mind if the Banks revise their rate, it comes with a new Lock-in-Period

If the Banks refuse to give you a better rate, then u can give wild_card a call.

Ignoring what was paid in the past.

Just compare, existing principal outstanding at BLR less 1% for remaining tenures.

Then refinancing the same principal outstanding with same tenure at say BLR less 2.4%.

What is the interest savings less the refinancing cost.

Of course, we can have secondary argument as to whether you need to present value back the interest savings.

It should be that simple right. Past is past. Just focus on remaining loan amount.