ok, so i can conclude that,
100k loan @ 6%

50k @ 6% = RM3k /year interest
599.55 X 12mont = RM7194.60 (total payment per year)

So after 1year, my outstanding loan amount would be

7194.6 - 3k(50k interest for 1year)
So i'll paying RM4194.60 on principle

instead of if i loan 100k no extra 50k payment
RM 7194.6 - 6k(10k interest for 1year)
pying RM 1194.6 on pinciple.

This post has been edited by ychwang: May 26 2008, 07:21 PM

This is just an example la..For rich ppl sure they will dump in more money la...
i got 1 customer borrow 150k dump in 150k la

this also can argue..dizzy

---

Added on May 26, 2008, 11:31 pmgot lockin period la sure every bank have la 5 yrs 9%..standard la, just u can dump in money any time withdral it anytime no penalty charges only....sorry forgot to mentioned we do have rm10 monthly maintenence fee and rm200 one time set up fee..pay upon signing the LO.

This post has been edited by Errie: May 26 2008, 11:31 PM

I'd rather pay RM10 p/m and save few hundred or thousands in interest per month. Dont want to be penny-wise, pound foolish


lucky u.............no one wants to buy me lunch.................

Hi... wanna ask something regarding Flexi vs Fixed Loan, & Daily vs Montly Rest...

My understanding (Flexi vs Fixed):
---------------------
Fixed Loan: for extra prepayment, it reduces your principle. Hence, it helps to reduce the interest
Flexi Loan: for extra prepayment, it will just park in your current account. And it "virtually" reduce your principle. Hence, it helps to reduce the interest (same as above), except that you can withdraw back the extra prepayment anytime, no charge (apart from other maintenance fees). Then the interest will be recalculated =
[ (the actual amount you owe bank - virtual prepayment you made) * interest rate / 365 ].

With my understanding above, if flexi n fixed loan come with a same rate, no way the fixed loan can be better than flexi loan, right? Or is there any other benefit on the fixed loan (let's say we omit the setup n montyly charges)?

Daily vs Montly Rest
-----------------------
Everytime i see in the brochures, the bank will says smth like "interest is calculated on daily basis, so you can save on the interest". But isn't it with daily basis, the calculation will be in a Compound Interest way where you actually pay more interest instead of saving them? whereas for montly rest, it will be calculated once a month (net outstanding amt * interest rate / 365*30)?

This post has been edited by ...PS...: May 27 2008, 10:27 AM

as i mention as above, flexiloan only help you save if your park amount >2k.
So if you park 2k = rm120/month = RM10/month goes to monthly maintance c/a fees. so u earn no interest
only if your park amount more than 2k, the subsequence amount will help you save 6%(if your loan interest is 6%)

Let said your loan interest is 5%, u need RM2.4k in park c/a all the time in order to "Break Even" the rm10/month maintaince fees.

I'm very interested in this terminology between Flexi and Fixed loans as well, need to decide which type is better for me in the long run to save on interest.

By the way, I recently called up one of my housing agents, I want to buy an RM 255K house, loan 90%, tenure 30 years, BLR 6.5... she calculated and said the monthly installment is RM1,300. Wonder if it is correct....

By the way, I am 25 this year. Can tenure be 35 years?

It's depends on the interest rate and with/without MRTA. If BLR-2% whole tenure for 229.5k, 30 yrs tenure without MRTA, monthly should be around RM1200.

some banks offer 35 yrs tenure or up to 70 years of age.

i wanna ask...

I taking a flexi mortgage loan with BLR -1.8% for 216k loan with 30yrs.monthly Rm1160.

Principal 260
Interest 900

if i dump in 200k on 2nd month,mean i still paying 1160

Principal 1094
Interest 66

is it calculate this way??

Yup,your interest will be count as
216k-200k = 16k * BLR - 1.8

If you dump 216k, you interest will be count as
216k-216k = 0 * BLR -1.8 = 0

So your monthly installmant Rm1160 will 100% become principal.

This is y some people will take a loan even they already have the money to buy with cash in hand.
They can buy a house with the cash and still have the cash liquidity in case of emergancy.

---

Added on September 12, 2008, 4:53 pmFor me i will definately go for flexi loan. As every Rm1 we have in hand, we can save Rm1 interest.

If you earn Rm5k and spend Rm5k every month,then ony you go for fixed loan.

Even some bank state that they are semi-flexi ,but there are alot term and condition.
Which is not flexi to me.

I deal with some customer who dump in extra money but it didn't save any interest for them.
After checking i found that the money is stay in bank as early payment, which use to deduct every month for the installment. Not early settlement.





This post has been edited by onnying88: Sep 12 2008, 04:53 PM

onnying88, many thanks for your kind advise. I will take note of it.

No problem

One more things to take note if u really go for flexi,
You have to open a current account with the LO u signed. No need to put Rm1000 as normal current account needed.
your extra money and monthly installment will all put in the current account that will link up with the loan.
This is a important step for flexi loan.

If for fixed loan, they get the rate which offer lower interest then flexi.
which normally fixed loan have lower interest rate then flexi.


Any problem according for the housing loan,feel free to pm or ask me.


Goodluck in getting your dream house


This post has been edited by onnying88: Sep 12 2008, 10:23 PM

mine is flexi one but i dont see any cheque book coming with it...Which is better? positive cash flow or save interest??hmmm

Well, it's like doctor or lawyer. Or a comp technician... that's their trade.

Just compare interest to interest.
FD interest lower than Loan interest, so put in Loan.
If balance in flexi loan already 500K and zero interest, then put in FD.

I think compounding interest also works for Loan but have to start at say 400K so that you actually do incur interest

If you have $500k flexi loan and $500k cash in the flexi account.

Would the bank able to loan others $1.5mil?
The bank is allowed to loan 3 times the amount in their customers' savings.

Pretty much none of our business...
As long as we managed to save on our interests, who cares what the bank gonna do with the money, seriously....

I think banks can lend you up to installment equals to 1/3 of your salary.
Maybe like share investment they lend you (not others) 3x your balance but by 3 days,
you have to pay or force sell.

Don't think they can lend someone money they don't have ... by create money from thin air.
Maybe they can borrow money from Japan with lower interest and lend to Malaysians but I think BNM will limit them.
If they can create money, don't need customers' savings at all right???

This post has been edited by getsmart: Feb 21 2009, 06:35 PM

Oh my, they are here too.

I just close a thread on Slash Interest Methodology from Acesphere.
Also gave him points deduction for spurring nonsense.

Under flexi loan with ZMC, if the loan amount & the balance in current a/c equals, it is deemed interest free.
however, ZMC means the fees/charges for loan being borne by the bank.
so, under the 'loan amount = balance in current a/c' circumstance, how do we determine that the bank has borne the fees/charges for the loan?
Is the % of interest (BLR-X%) which the bank charge inclusive of a sum of money (for the legal fees of the loan @ maybe prescribed in the form of %) on top of the interest on the loan?
If it is, can we construe that if: 'loan amount = balance in current a/c, then legal fees on loan = free?

I just combined some of the flexi loan topic into one for easier reference.
If there's any others that you come across and felt informational; pls PM me and I'll merge it in.