Jun 4 2007, 07:45 PM
You not only save on interest but also the legal fee & stamp duty for loan.
For a loan of RM180k, u saved RM7k on the latter already.
In case u're in need of cash in future, don't worry. U can always mortgage the property for up to 90% of the market value.
It is always important to have a shelter above your head.
Added on June 4, 2007, 7:49 pm
QUOTE(uglybee @ Jun 4 2007, 11:00 AM)
My friend told me that when taking a loan, it would be better not to take the MRTA cause:
1) The amount is tied to the house / loan
2) The amount must be paid on lump sum
So what he suggested is to take Life insurance of the same amount and if anything goes wrong, the Life insurance is enough to cover the loan. The benefit is:
1) No need to pay one lump sum
2) The Life insurance is tied to him and not the house / loan
3) For some Life insurance, when it is matured some amount can be taken back
Is my friend right?
Ur friend is half right, half wrong.1) The amount is tied to the house / loan
2) The amount must be paid on lump sum
So what he suggested is to take Life insurance of the same amount and if anything goes wrong, the Life insurance is enough to cover the loan. The benefit is:
1) No need to pay one lump sum
2) The Life insurance is tied to him and not the house / loan
3) For some Life insurance, when it is matured some amount can be taken back
Is my friend right?
If u take up MRTA for a loan of RM150k, the premium would be something around RM1500-2000. And it's a one-off payment.
While for life insurance, assuming u're 25 now. How much is the premium for RM150k insurance? And bear in mind u'll have to pay annually.
This post has been edited by scorgio: Jun 4 2007, 07:49 PM
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