Oct 10 2023, 03:20 PM
QUOTE(robotking123 @ Oct 10 2023, 09:28 AM)
Loan 350k
Today outstanding: 320k
Already served 6 years plus, 1500 monthly
6 x 12 x 1500 = 108k
108k - 30k = 78k
Bank already earned 78k interest from me, bloody hell
Gov should do sthg, how can house loan be so expensive...
.Today outstanding: 320k
Already served 6 years plus, 1500 monthly
6 x 12 x 1500 = 108k
108k - 30k = 78k
Bank already earned 78k interest from me, bloody hell
Gov should do sthg, how can house loan be so expensive...
Seems, the Rule Of 78 is still being applied by Malaysian banks for long term housing loans. .......
https://www.investopedia.com/terms/r/ruleof78.asp - Rule of 78: Definition, How Lenders Use It, and Calculation
By CAROLINE BANTON Updated March 06, 2021
Reviewed by THOMAS J. CATALANO
What Is the Rule of 78?
The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan. ...
In 1992, the legislation made this type of financing illegal for loans in the United States with a duration of greater than 61 months. ....
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