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.

Your advice is the best! Thanks. Yes, thought of that but I have to becareful not let the loan finish off earlier when I do partial payment:
My constraints:

-the loan should at least drag for another 4 years to avoid penalty.
-with the continue dropping BLR (twice), my loan period could be shorten (if i prepay, even faster).
- keep the rest of the money as liquidity.

Thanks again.

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Added on April 7, 2009, 5:03 pmTo answer your very interesting question.
I didn't had that kind of $$ when i first bought the house few years back. I was even struggle to get the bank to approve my loan.
Now, I very luckily made some $$$.


This post has been edited by sunny2009: Apr 7 2009, 05:03 PM

[quote=onnying88,Apr 7 2009, 08:34 PM]

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Added on April 7, 2009, 5:03 pm
To answer your very interesting question.
I didn't had that kind of $$ when i first bought the house few years back. I was even struggle to get the bank to approve my loan.
Now, I very luckily made some $$$.

[/quote]

Mind to share how to make the $$$ in short time? hehe

[/quote]


ehhh... your q not related so this is my last response to you .
Study hard>grad with good result>work hard also. Of cz pray hard...

Hello,

Thanks for your feedback. It is Public Bank. I guess they are pissed of with me when I negotiated the interest reduction.
My initial package

In 2005
Year 1 BLR-xx
Year2 BLR- xy
Year3 onwards BLR+1.5

Sorry, I cant rmb the xx, xy values.

Then in Year 3 I negotiated it to BLR-1.75 So, they imposed a new 5 years locking period from then....

I have no other choice. Can you give me a hint or so?

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Added on April 9, 2009, 8:43 amerr, the calculation missed out a little bit.
My monthly installment is RM1425. Can you help me to roughly estimate what should be the safest outstanding amount before I get penalized?
I m planning to do a small prepayment again.tq...

This post has been edited by sunny2009: Apr 9 2009, 08:43 AM

Hi, fyi this is not a flexible loan. Clearly stated the interest breakdown for the first 3 years. The calculation is still out.

Dear all,

An update and recap of summary:

Outstanding loan: RM100k (approximate)
Lockout period: until 2013
Penalty if settle earlier: RM6k
Current Interest: BLR-1.75% (BLR=5.5%)
bank: Public.

My bank currently provide new rate such as BLR-1.8 to BLR-2.

I recalculated that asking for a reduction will:
-save me RM20 a month
-put myself at a risk of new lockout period
-processing fees of RM50-100 which will take me 3-6months of interest saved.

Should I re-nego the interest rate?
Thanks.