Jul 16 2017, 10:08 AM
QUOTE(Nation of Sensation @ Jul 1 2015, 07:11 AM)
Hello,
In regards to the article below:
http://michaelyeoh.com.my/knock-out/
TLDR; version:
1) Instead of paying monthly for your housing loan installment, pay bi-weekly. That basically means that you will be paying every 2 weeks once.
2) Topup another 10% from your installment amount so that the additional payment would knock off the principal amount and reduce the interest even further subsequently.
I'm wondering, is there anyone that is following either or one of the method mentioned above? I'm with Ambank for now, do they even allow bi-weekly payment? Or is there a hidden catch somewhere?
Do share your experience. Thanks!
still the same if u pay by bi-weekly.In regards to the article below:
http://michaelyeoh.com.my/knock-out/
TLDR; version:
1) Instead of paying monthly for your housing loan installment, pay bi-weekly. That basically means that you will be paying every 2 weeks once.
2) Topup another 10% from your installment amount so that the additional payment would knock off the principal amount and reduce the interest even further subsequently.
I'm wondering, is there anyone that is following either or one of the method mentioned above? I'm with Ambank for now, do they even allow bi-weekly payment? Or is there a hidden catch somewhere?
Do share your experience. Thanks!
worst case u still in loss.
loan 400k
tenure 35 yr
monthly installment 1843.79
interest 4.3%
due date every 1st day of the month
full flexi loan
daily interest 400k x 4.3% / 365 = 47.1232
at 15th of the month
Payoff amount 400k + 15 x 4.3% / 365 = 400k + 706.8493 = 400706.8493
Outstanding amount 400k
Option 1(pay bi-weekly)
Assuming u pay bi-weekly which is at 15th of the month
Payoff amount 400706.8493 - (1843.79/2) = 399784.9543
Outstanding amount 400k
take note that the interest rate is calculate based on the outstanding amount which is 400k and the interest rate will be 47.1232/day
Option 2(offset principle, withdrawal option)
Assuming at 15th of the month, u use (1843.79/2) and bank in to offset the principle, withdrawalable
Payoff amount 400706.8493
Outstanding amount 400k - (1843.79/2) = 399078.105
interest rate after 15th will be based on 399078.105 which is 47.01468/day
Summary, its not worth to pay bi-weekly and a lot of agent is giving false info on this.
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