|
Malaysia Real Estate
Malaysia Real Estate Portal
|
| View previous topic :: View next topic |
| Author |
Message |
Josh Tan
Joined: 27 Sep 2008
Posts: 2
|
 Posted: Sat Sep 27, 2008 12:51 pm Post subject: Loan interest calculation |
 |
|
Hi,
I have a current account open to serve home load.
I am trying to figure out how banks calculate the interest on the loan.
What I gathered is that the amount in my current account will be counted to offset the outstanding loan, where the interest is chargeable on the balance.
This seems simple enough but my questions are:
If I were to top up my current account in the middle of the month, how should the interest be calculated?
ie. Is the interest calculated at the end of the month based on the consolidated amount in loan and current account regardless of the daily transaction?
Or should the interest be performed daily instead?
My calculation so far doesn't match the actual interest charged by the bank.
Thank you. |
|
| Back to top |
|
 |
ed0gawa
Joined: 18 Jun 2008
Posts: 33
|
| Posted: Sat Sep 27, 2008 10:50 pm Post subject: |
|
|
Shouldn't you be talking to your bank on this?
We wouldn't know what is the package you are taking.
Or you can check back your letter offer to know if it is a daily rest or monthly rest.
It if is daily rest (where it is common today), interests are calculated ona daily basis. |
|
| Back to top |
|
|
marvinteow
Joined: 26 Aug 2008
Posts: 23
|
| Posted: Mon Sep 29, 2008 12:26 am Post subject: Re: Loan interest calculation |
|
|
| Josh Tan wrote: | Hi,
I have a current account open to serve home load.
I am trying to figure out how banks calculate the interest on the loan.
What I gathered is that the amount in my current account will be counted to offset the outstanding loan, where the interest is chargeable on the balance.
This seems simple enough but my questions are:
If I were to top up my current account in the middle of the month, how should the interest be calculated?
ie. Is the interest calculated at the end of the month based on the consolidated amount in loan and current account regardless of the daily transaction?
Or should the interest be performed daily instead?
My calculation so far doesn't match the actual interest charged by the bank.
Thank you. |
If is based on daily rests, exactly the interest is daily calculation, if you deposit certain money inside the current account, of coz that day the calculation of the interest rates will be lower, whenever u withdraw the money on certain day, then the interest rates calculation will b increase. once up to the end of the month. then the system will automatically calculate in the account. you will know on that month u need to paid.
Meanwhile, since u mentioned currently the actual charge on monthly installment is different from what u know, so i better prefer you hv a check on the bank officer (hopefully is not those mortgage sales executive or officer to do ur loan lar, otherwise, any after sales service, they may not possible to help, due to MOST OF THEM, NOT ALL OF THEM, ARE SUPERB ON SALES, NOT EXACTLY GOOD IN AFTER SALES SERVICE). So, you can go to any of the branch from the bank you apply. You tell them, you want to check from the HOST system, then print out the copy from certain period u needed. After that, any inquiries you can direct ask them, this will solve your problem. |
|
| Back to top |
|
|
far83v2
Joined: 23 Mar 2008
Posts: 72
|
| Posted: Mon Sep 29, 2008 6:21 am Post subject: Re: Loan interest calculation |
|
|
| Josh Tan wrote: | Hi,
I have a current account open to serve home load.
I am trying to figure out how banks calculate the interest on the loan.
What I gathered is that the amount in my current account will be counted to offset the outstanding loan, where the interest is chargeable on the balance.
This seems simple enough but my questions are:
If I were to top up my current account in the middle of the month, how should the interest be calculated?
ie. Is the interest calculated at the end of the month based on the consolidated amount in loan and current account regardless of the daily transaction?
Or should the interest be performed daily instead?
My calculation so far doesn't match the actual interest charged by the bank.
Thank you. |
Interest is calculated based on daily basis. Actually it depend on which package you are taking as for example, taking loan under Flexi is based on daily basis.
The advantage will definitely to you if made top up deposit/principal reduction for you because the more you made principal reduction by top up in the account, the lesser charge interest for you.
I'm not suprise some customer have trouble calculate the interest because even i manually calculate through Microsoft excel take about 1 - 2 days to really get the accurate calculation.
In this kinda situation yeah it is advisable to go to the bank and ask them to assist you calculate the interest
Hope this will help. Thanks.. |
|
| Back to top |
|
|
yykalex
Joined: 14 Mar 2008
Posts: 149
|
| Posted: Mon Sep 29, 2008 11:56 am Post subject: |
|
|
The FORMULA :
Payment = [ PV(1 + Int)Yr ] / [ (1 + Int) Y - 1 ]
Suppose you take out a 30 year mortgage for $100,000 at 7% interest, and want to know the monthly payments. To do that, you divide the interest rate by 12 to get (.07/12) = .00583; and multiply 30 x 12 = 360 to get the number of payments. Then the formula gives you:
payment = [$100,000(1 + .00583)360 x .00583] / [(1 + .00583)360 - 1]
= $665
*PV= present value;
*Int= Interest rate;
*Yr= Loan tenure.
Suppose you were taking a flexi loan, just change the outstanding loan amount (after you dump-in the extra money).
However, this is just a simple calculation which the figure may vary from actual. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
This is a free forum intended to foster communication between
all users.
Hileytech Sdn Bhd does not guarantee the correctness or validity of postings,
nor does Hileytech endorse any postings. No posting or contents in this forum
can be copied and reproduced without prior permission from Hileytech and the
owner of the posting. All other names and marks are trade names, trademarks or
registered trademarks of their respective owners.
Powered by phpBB,
Another web site by www.hileytech.com,Forum Archive
Tel : +60-3-42978281 :: Fax : +60-3-42978254 :: hiley@hileytech.com
|
FAQ
Search
Usergroups
Register
Profile
Log in to check your private messages
Log in
