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Attn Marxdean, compare these 2 packages for me PLS

 
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boomerkk



Joined: 12 Oct 2006
Posts: 416
Location: K.L.

PostPosted: Thu May 17, 2007 9:15 pm    Post subject: Attn Marxdean, compare these 2 packages for me PLS Reply with quote

Hi Marxdean,

I would like to consult you re: how much I can save.

Property is RM178k + RM4k MRTA = Loan is RM182k.
Current package is BLR-1.28 whole tenure x 30 yrs.
Exit penalty 3% within 3 years.
Instalment is RM1034pm. No redraw. Can make 'partial settlement' with notice, but it seems the instalment remains the same.

How much can I save if I take up NewKenzo offer, BLR-1.6%
(Loan amount is increased by legal fees and 3% penalty).

Many thanks
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NewKENZO



Joined: 01 Jun 2006
Posts: 198
Location: Subang

PostPosted: Thu May 17, 2007 9:43 pm    Post subject: Re: Attn Marxdean, compare these 2 packages for me PLS Reply with quote

Your current monthly instalment : RM1034

If take up Alliance Bank, assume that loan amount RM182,000 + 3% penalty and 2% legal fee
= RM182,000 + RM5,460 + RM3,640 = RM191,100
For 30 years, whole tenure BLR - 1.60%
monthly instalment is RM1,040, extra RM6 ringgit bcz the 3% penalty is pain.




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Kenzo
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Fri May 18, 2007 9:49 am    Post subject: Re: Attn Marxdean, compare these 2 packages for me PLS Reply with quote

boomerkk wrote:
Hi Marxdean,

I would like to consult you re: how much I can save.

Embarassed Embarassed Since when have I became a mortgage consultant ? Rolling Eyes Okie, nvm, let's just discuss and share, don't say "consult" --larr, later I charge you --lerr Razz

Anyway, more details needed to reflect the "realistic" situation of your specific case:

boomerkk wrote:

Property is RM178k + RM4k MRTA = Loan is RM182k.

Possible to pay the RM4k MRTA in cash ? I think it is better for you not making it part of your mortgage if you are financially sound to pay this.

boomerkk wrote:

Current package is BLR-1.28 whole tenure x 30 yrs.

How long is your planned tenure ? 30 years is hurting if you are the one who pay for the mortgage interest. Pls provide a realistic tenure you wish to finish off the loan.

boomerkk wrote:

Exit penalty 3% within 3 years.

Which means locked-in period 3 years. Are you planning to refinance, sell or paid-off in this period ? If NO, then this is not a consideration at all.

boomerkk wrote:

No redraw.

Cannot redraw or you not planning to redraw ?

boomerkk wrote:

Can make 'partial settlement' with notice, but it seems the instalment remains the same.

Do you have the loan offer letter with you ? Please reproduce the clause concerning "PREPAYMENT", or "partial settlement" here. Especially how often you can make partial prepayment? how much is the minimum amount of each partial prepayment? how much is the maximum limit of partial prepayment per year ? etc ...

boomerkk wrote:

How much can I save if I take up NewKenzo offer, BLR-1.6%
(Loan amount is increased by legal fees and 3% penalty).

Again, pay the legal fees yourself if possible. Ask for even lower rate since you have paid for the legal fees. (NewKenzo, possible ?)

Why the loan amount is increased by 3% penalty ? Is this the penalty imposed by your current lender and you are trying to refinance now ?
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tgrrr



Joined: 18 Jan 2007
Posts: 135

PostPosted: Fri May 18, 2007 11:43 am    Post subject: Reply with quote

boomerk u won't save anything if u refinance the original amount plus the 3% exit penalty and 2% legal fees.
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Fri May 18, 2007 3:40 pm    Post subject: Reply with quote

tgrrr wrote:
boomerk u won't save anything if u refinance the original amount plus the 3% exit penalty and 2% legal fees.


Hi tgrrr,

Why not you share how you calculated and come to this conclusion ?
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NumberTWO



Joined: 30 Mar 2005
Posts: 220

PostPosted: Fri May 18, 2007 4:09 pm    Post subject: Reply with quote

assuming BLR = 6.75%, my 8 years old Loan Calculator gives me these info:

============================================

Lender Name BANK (NewKenzo offer)

Basic Loan Information:
Amount $191,100.00 (*Refinance amount based on NewKenzo's assumption above)
Annual Interest Rate 5.15%
Beginning of Loan 01-01-07
Length of Loan, Years 30
Payments Per Year 12
Payment Information :
Total Payments 360
Calculated Payment $1,043.46

Summary Information
Total Paid ($375,644.21)
Interest Paid ($184,544.21)

=================

Lender Name (Existing Package)

Basic Loan Information
Amount $182,000.00
Annual Interest Rate 5.47%
Beginning of Loan 01-01-07
Length of Loan, Years 30
Payments Per Year 12

Payment Information :
Total Payments 360
Calculated Payment $1,029.95

Summary Information :
Total Paid ($370,783.05)
Interest Paid ($188,783.05)

=--=-=-=--=-=-=--=-=-=--=-=-=--=-=-=--=-=-

boomerkk, to be more accurate you have to judge it from what is your current balance that you are planning to refinance... I assume 182K is your original loan amount..
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NumberTWO



Joined: 30 Mar 2005
Posts: 220

PostPosted: Fri May 18, 2007 4:10 pm    Post subject: Reply with quote

*Cut* double post
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marxdean



Joined: 06 Nov 2006
Posts: 477

PostPosted: Fri May 18, 2007 4:36 pm    Post subject: Reply with quote

Apart from those up-front cost of refinancing (penalty, legal fees, valuation fees, processing fees, etc...), it is the actual repaying behavior of the borrower, which either harmonized or conflicted with the terms and conditions of the new loan that eventually determine the overall cost of owning the property, and hence decide whether this refinancing option is viable. Wink
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tgrrr



Joined: 18 Jan 2007
Posts: 135

PostPosted: Fri May 18, 2007 6:07 pm    Post subject: Reply with quote

marxdean wrote:
tgrrr wrote:
boomerk u won't save anything if u refinance the original amount plus the 3% exit penalty and 2% legal fees.


Hi tgrrr,

Why not you share how you calculated and come to this conclusion ?

coz i'm lazy Laughing
i just base my calculations on all those information given by boomerk, and the estimated exit penalty and legal fees. Boomerk just asked how much he can save by refinancing using the new package.
If base solely from these numbers, if boomerk does not increase the original monthly installment, he cannot pay back in 30 years time for the new package. This already says it's no go.
NewKenzo also stated that the installment had to be increased to meet the 30 years term. Of course, if we were to take into account other facilities, prepayment, shorter tenure etc... then it could be different.
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boomerkk



Joined: 12 Oct 2006
Posts: 416
Location: K.L.

PostPosted: Fri May 18, 2007 6:12 pm    Post subject: Reply with quote

thanks guys, yeah, I think tgrr is right, not worth it as I've still got that 3% exit penalty.

Plus, the intangible cost of the hassle required to refinance as I'm currently overseas.

The original package also okay, not too bad. It helps that I've got a good tenant anyway.
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