SB consultant?

Show me how a new loan (ie BLR - 2%) interests can be higher than the old loan (ie. BLR + 1%) in a term loan with a same balance outstanding, let say 30 years tenure.. ?

The only "chance" is perhaps not paying the same repayment amount, plus becoz the new loan has a peak(highest interests charge) during the initial period of x years.. But in overall, you will save hell of an interests go for refinancing (of course if it is viable looking at your old loan %!)

This post has been edited by numbertwo: May 15 2009, 12:35 PM

just added/edited my post , sorry:

i was saying :
The only "chance" is perhaps not paying the same repayment amount, plus becoz the new loan has a peak(highest interests charge) during the initial period of x years.. But in overall, you will save hell of an interests if one goes for refinancing (of course if it is viable looking at your old loan %!)

This post has been edited by numbertwo: May 15 2009, 12:37 PM

Alan,
I think you have half a point right which I agree, that is , ways of reduction of interests paid is not documented anyway, so general public will never understand how it can be done. Simple ie. Prepayment, many thought that by paying prepayment it would save them intersts... but not many knows that bank actually park your prepayment, or so called advanced payment somewhere else without doing any saving for your loan account.. There are just many tricks in this loan thingy whereby normal folks will not know... But these tricks are not worth a few K to pay to supex for sure IMO!