Apr 9 2009, 12:06 AM
QUOTE(sunny2009 @ Apr 7 2009, 01:15 PM)
Hello,
I got a house loan:
Duration: 20 years
Amount: RM198k
Start: June 2005
Package: Renegotiated once in 2008 and reduced the rate to BLR-1.75%
Min years to pay to avoid penalty: 2008 + 5 years.
I did prepayment several times: RM30k, RM40k
with an outstanding amount of abt RM100k.
Now, the BLR has dropped and I thought of settling the loan 100% with the following considerations:
- At this time, ppl tend to keep cash as economy is bad. Should I pay or stay?
- If I pay, I might get:
-penalty 5%
-income tax could go after me also.
-not so much cash in my hand.
Should I re negotiate the interest again?
Share your thoughts.
depending on what type of loan is this, and which bank.I got a house loan:
Duration: 20 years
Amount: RM198k
Start: June 2005
Package: Renegotiated once in 2008 and reduced the rate to BLR-1.75%
Min years to pay to avoid penalty: 2008 + 5 years.
I did prepayment several times: RM30k, RM40k
with an outstanding amount of abt RM100k.
Now, the BLR has dropped and I thought of settling the loan 100% with the following considerations:
- At this time, ppl tend to keep cash as economy is bad. Should I pay or stay?
- If I pay, I might get:
-penalty 5%
-income tax could go after me also.
-not so much cash in my hand.
Should I re negotiate the interest again?
Share your thoughts.
there's alot of ways of avoiding penalty and still reduces your interest charged to a minimal. but it really depends on what type of loan you took, and which bank. The method differs from a conventional, semi-flexi and a full-flexi; also the facility and repayment system a bank applied back then.
Still, best thing to do is avoid the 5% penalty. (5% penalty in 2005 sounds like one of the local bank...)
ask the previous banker (if he is still around
) what's the best thing to do.hope the above helps.
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