Hi,

I have just taken up AIA offer of 5.75% fixed for 30 yrs home loan for 289,800.

Since BLR has gone down to 6.5%, I think I will drop further. In my opinion, BLR won't increase in the next 5 yrs at least!

Please advise me on the steps and costs.

Thank you. 

For me, I would calculate on the savings over 5 years for short/medium term plan also. As after 5 years, I might refinance again if there are better package. However, take note that after 5 years, there may not be better package available if BLR rises !!! Hence, you are stuck with fluctuating BLR and may pay more over the 30 years.

Since DannyOP has the calculator, please help to calculate the interest paid for current package and refinanced package in 5 years period.

e.g.
Current @5.75%: 5 years Interest paid = ??

New Package @4.1%: 5 years Interest paid + penalty + MRTA/MLTA + legal fees paid (including absorbed) = ??

If it saves you over 5 years, most of the time you'll save over 30 years. If it doesn't, think and plan carefully. Cause now, you may see you can save RM104k, but that is over 30 years. If you take the new package now and refinance again in 5 years time, you may actually lose more money.

I cannot calculate on TS, as I have my own excel spreadsheet and functions, and I normally pay more than the monthly installment.

And YES, if it is a Zero moving cost package as advertised, I am expecting FREE LUNCH. Don't explain to me about the offer, and at the end tell me add in X thousand amount into loan and pay installment. Normally when they reach this part, I cut short the conversation.

My loan amount is 230k, now left about 180k. How about MRTA, last time I bought insuran to replace it, do I need to buy again if refinance?