If you guys really wants to know more, I had previously engaged in a huge debate with some in realestate.com.my

There's one forumer there which I deem quite good in his analytic skills:
marxdean. Quite informational from him if you can understand his points:

http://realestate.net.my/forum/viewtopic.p...6651&highlight=
http://realestate.net.my/forum/viewtopic.php?t=6445
http://realestate.net.my/forum/viewtopic.p...7555&highlight=

I'm on flexi loan and I have my own reason for taking it.
One reason is because my wife's earning is base on incentive, thus whenever there's big commission we'll commit it to the loan.
I've my fair share of argument with this marxdean guy. But I do admire his logical explanation.
But long time didn't see him in that forum, nor did I log in for a long time also.

The blog looks familiar.....hhhmmm.... SUPEX related?........Bryan??.......

The best part............they're going to charge you for all that.........errrr......... they term it as selling a service.

First of all TS doesn't know what is flexi loan.
Pls do up more research and the easiest way is shop around and ask bankers.
Truly full flexi loan is available with SCB, Citi and HSBC whereby they give you ATM cards and checque books.
Some are what I would term them as partial such as UOB, OCBC and most local banks. I.e. when one wants to withdraw, they would have to inform the bank and can only withdraw in Thousands or multiples of hundreds with the minimum of RM500.

Than when we talked about charges, usually the first group would charge a monthly "account maintenance fee" of RM10. Whereas the latter group usually doesn't charge anything but might charge processing fees upon withdrawal.

So now the decision is on whether or not one really needs this "flexiness" and how frequent one projects he/she would need to withdraw money.

Btw, the advance payment made doesn't reduce one's monthly repayment. In all, it would reduce the total loan principal thus reducing also the interest charged. But the monthly repayment amount is still the same.

Like I say, the way you calculate interest shows that you're not familiar with housing loan interest at all....
mortgage interest is using amortising method.
excel PMT function:
(from excel help)
Calculates the payment for a loan based on constant payments and a constant interest rate.

Syntax

PMT(rate,nper,pv,fv,type)

For a more complete description of the arguments in PMT, see PV.

Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.

Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.


And according to your first post example, you'll be paying RM599.55 per month.
Logically if you've dumped in RM50k the next month your monthly repayment should reduced to RM300.07 but the fact is flexi doesn't work that way. You'll still have to pay monthly RM599.55 till you finish finish paying down your principal.

This post has been edited by b00n: May 26 2008, 03:33 PM

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.