If you plan to shorten your payment period for the same installment per month, take UOB.

They allow you to do payment weekly (auto payment) to reduce your interest rate and for a 25 years loan, the loan will be finish in around 21 years. Other bank's auto payment mechanism normally only allow you to set up monthly payment.

"Flexi loan" where it is linked to a current account where the money in the current account will be used to reduce the interest rate. Good if you have extra money and want to reduce the interest, but don't want to use the extra money to reduce the principal sum. Some bank charge a RM10 per month fee for this linkage. So think and choose what you need carefully.

This post has been edited by clieman: Sep 24 2008, 12:54 AM

I would think so. But the spreadsheet prove me wrong, or the spreadsheet is wrong?

I attached the worksheet and you can comment on it.

[attachmentid=606785]
p/s if the attachment was downloaded as index.php please rename to .zip file to open it.


This post has been edited by clieman: Sep 26 2008, 10:20 AM

The spreadsheet is Excel Spreadsheet zipped. When you click on the link the system will ask you to save and you can enter "anything.zip". Then unzip the file to get monthly_payment.xls

AFAIK there is no charge for principal sum reduction.

All payment to the housing loan account will be used to deduct from the principal sum. The bank just "add back" the interest charge at the end of the month.

This post has been edited by clieman: Sep 26 2008, 07:20 PM