Jun 22 2009, 11:34 AM
QUOTE(idoblu @ Jun 22 2009, 10:59 AM)
hi
actually i got the calculation from the UOB. It says "loan tenure to shortened to 17 years and 11.1 months - ok 18 years which if my term is 20, i would save 2 years but after calculating it again taking into account the weekly payment thing - I figure I only save 6 months of actual monthly payments and not 2 whole years.
and this is not even taking into account that i would deposit the full monthly payment at the beginning of the month - but when they transfer just the weekly part of it, the other parts really aint doing anything in the account. eg. not earning any interest nor lowering any principle amount
You are not depositing money into the loan... When you taking a fortnight or weekly payment with UOB, you just paying them more frequently with your monthly rate divided by 2 or 4. You do ended up with 1 more month per year.actually i got the calculation from the UOB. It says "loan tenure to shortened to 17 years and 11.1 months - ok 18 years which if my term is 20, i would save 2 years but after calculating it again taking into account the weekly payment thing - I figure I only save 6 months of actual monthly payments and not 2 whole years.
and this is not even taking into account that i would deposit the full monthly payment at the beginning of the month - but when they transfer just the weekly part of it, the other parts really aint doing anything in the account. eg. not earning any interest nor lowering any principle amount
You setup a saving acct with them and that saving acct will remit the payment to the loan on fortnight or weekly. Whether you getting interest or not on that Saving acct, its irrelevant as Saving acct have crapped out interest anyway! And yes, should be dumping big amount into that saving acct either.
You should ask how many percent you saved and not the nos of month. If you take 30yrs loan, you get a lot more saving!
If you take same amount of loan for 20 yrs vs 30 yrs, when you go on fortnight, the months of payment save will be smaller on 20 yrs but % of interest save will be similar.
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