Jun 27 2009, 01:38 PM
QUOTE(jasonhanjk @ Jun 27 2009, 12:47 PM)
I see, you pay extra just to reduce the tenure.
It would result in making the overall interest reduce.
Since your calculation is base on 319 month, let me match it.
Flexi loan:
Loan amount RM100k.
Tenure 319 months.
Rate BLR-1.6% or 3.95%.
RM10k put into flexi account for 319 months.
Total interest paid: $55,508.38
Account maintenance: $3190.00
Interest earn for 10k cash: $0.00
Out going cash after 319 months: $58,698.38
Term loan:
Loan amount RM100k.
Tenure 319 months.
Rate BLR-1.8% or 3.75%.
RM10k put into fix deposit for 319 months @ 2.5% rate pa.
Total interest paid: $58,134.96
Account maintenance: $0.00
Interest earn for 10k cash: $9278.47
Out going cash after 319 months: $48,856.49
Result:
Flexi loan only saves interest about RM2.6k but overall term loan is cheaper by $9841.89
Added on June 27, 2009, 1:00 pm[attachmentid=1045743]
This is really a crappy software.
Monthly payment of RM478 would gives total payment RM141,360.
Yet it's stated RM151,434.
Difference in RM10k payment.
You dont even know how my calculation been done. Please read and study carefully.It would result in making the overall interest reduce.
Since your calculation is base on 319 month, let me match it.
Flexi loan:
Loan amount RM100k.
Tenure 319 months.
Rate BLR-1.6% or 3.95%.
RM10k put into flexi account for 319 months.
Total interest paid: $55,508.38
Account maintenance: $3190.00
Interest earn for 10k cash: $0.00
Out going cash after 319 months: $58,698.38
Term loan:
Loan amount RM100k.
Tenure 319 months.
Rate BLR-1.8% or 3.75%.
RM10k put into fix deposit for 319 months @ 2.5% rate pa.
Total interest paid: $58,134.96
Account maintenance: $0.00
Interest earn for 10k cash: $9278.47
Out going cash after 319 months: $48,856.49
Result:
Flexi loan only saves interest about RM2.6k but overall term loan is cheaper by $9841.89
Added on June 27, 2009, 1:00 pm[attachmentid=1045743]
This is really a crappy software.
Monthly payment of RM478 would gives total payment RM141,360.
Yet it's stated RM151,434.
Difference in RM10k payment.
Please note that i never pay any extra 1 cent in my calculation, RM10k in my flexi can be use and withdraw anytime during the whole or until i settle the loan, The RM10k is still in my hand. That's the reason i add in another 21mth before i make settlement for the loan.
The reason why flexi loan can reduce the tenure because the interest portion in the installment i pay every month is much lower then term loan. Due to interest counting with RM90K from start. As shown in the MOA graph.
Funny that you never understand it and using the same tenure i shorten using flexi loan for your term loan calculation which the tenure is fixed. You need to pay for 30years or 360mth for the term loan as you never pay any extra into the term loan. That's the reason why in my MOA graph show that term loan tenure is 30years.
Is this software crappy?
lol,You never understand how the flexi loan function. That's why you cant undeerstand how the figure come out.
The number is the software is 100% correct. Which you dunno how to count only.
In the MOA it show that total payment is RM151,434 which come from 298mth of installment + RM10,000.
298 x 475 = RM141,550 + RM10,000 = RM151,550
Why the number is different? because the last installment is not RM475, It's lower then RM475. That's why the number is RM151434.
In my MOA you can see that i can settle the loan at 24.8years but if i do so i will need to pay off with my RM10k also. That's why the MOA show the total payment is RM151,434. So in order to be fair to term loan, instead of settle the loan, i continue serve the loan for the next 21 mth, so that at the end when i settle the loan, i will have the RM10k in hand also. Same with the term loan example that you give.
So there is nothing wrong with the software. Just that you need to do more homework.
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