Is it advisable to paidup housing loan ASAP when have access $$?

eg loan Rm180k

cash Rm200k

its it advisable to uplift the loan by paying up (pay 3% penalty with the bank) or paid 80% and the remainder serve the 5 years tie with the bank.

or just pay the installment and with cash invest in other things (eg buying another hse or condo or buying stocks etc?

What do u think ?

This post has been edited by ankw: Feb 24 2008, 02:41 PM

i'll invest the cash into other thg...... pay the loan by installment slowly

What's the loan interest rate?

Are you confident if you invest the money, you can get return higher than your loan interest rate?

What's your risk tolerance & period of time for investment?

some banks allow u to deposit as much as u like or even all to their housing loan account. Later in case of emergency, can withdraw again. Eg Citibank.
Very flexible

i think the conventional loan cant do that. have to write in

if u have a lot a lot of extra cash,it is advisible to invest other things of cuz.but if excess a bit only,keep it as emergency use to have a strong cask flow.
correct me if i am wrong.

Write in to your current bank, ask them to convert your mortgage to the flexi ones at prevailing rate. Then, park supluss cash into the flexi loan.

That way, u pay zero interest and at the same time mantains a healthy liquidity position to caitlize on other upcoming opprtunities.