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My home loan is blowing my finances! Help!!

Whether you REALIZE this or not, MHL is still going to make this solid statement. Don’t worry if you don’t know, or you’re just a newcomer. We’ll help you sort things out. Seriously, it’s time to face the ultimate groundbreaking, heart-stopping, mind boggling, head smacking TRUTH. This statement do not apply to ALL the home loans out there, but to the common ones, this is it.

"For your outstanding balance vs year chart of your home loan, you’re may be bounded to pay interest of more than 100% of your loan capital."

Meaning to say, if your home loan is RM100, you’re may just be paying more than RM100 of interest. Total sum = RM200++. And if this is going to knock you down and demotivate you, please seek help. There are other ways of going around this problem.

Several of our favorite responses includes:

1. “Don’t try to sell me la, brother.”
2. “What!?”
3. “This statement does not apply to OUR bank’s home loan. Let’s take a look at Bank X’s catalog…”
4. *Turns green, went green, and never saw his face again*
   

We’re just making you realize of monetary facts and showing you opportunities around the problem that many people face.
Refinancing could be just the right option for you, we might say. Let’s take a simple calculation to further strengthen our stand:

After an outstanding loan of 5 years, you still have: RM230,963.00
Before Refinancing

• Interest Rate: 300 months, BLR + 0.25% = 7%
• Single installment payout: RM 1,662.44
• Total interest paid: RM233,412.35
  

After Refinancing

• Interest Rate (First 36 months, 5.25%; Thereafter: 5.15%)
• Single installment paid: RM1,370.45
• Total interest paid: RM178,830.68
• You save: RM54,581
  

Refinancing MAY NOT be the best option for some people, due to the following facts.
1. They have a spending problem.
They spend way too much; disallowing them from making necessary payments at the beginning of each month.
2. They may just extend their loan tenure.
If you paid your home loan for 25 years already, what are you refinancing for? Do you want to add that small amount to another 20 years of your life? Forget it.
3. They borrowed more than 90% of the home’s value.
If their home loan is below 80%, it makes sense. Otherwise, forget it.
4. Cashing out of their refinance.
Honestly, cashing out is their thing, because they see money. They may just end up paying longer.

Does it make sense at all for you?

my family housing loan also going to revised that rate already. Actually most of ppl don't know about this. 5 years ago when you borrow money from bank yur interest rate maybe BLR + 1%, that behind premium is +, but now, when you going to borrow money bank will offer you BLR - 2%. So if your house rate still end at +, faster faster go bank revised to -, You can save alot.

My father loan interest reduce from 5.55% + 1% = 6.55% to 5.55% - 2% = 3.55%..decrease 3%.
3% x Loan amount still pending. You can save alot.
fast go take a action..

Studylady is right. Banks are now giving home loans at BLR minus 2.0% to 2.3% depending on your financial report and the package you wanted to apply for. Usually the Non Zero Entry Cost will give you better rates.
Many people opt for the Zero Entry Cost as they don't have to fork out money to pay for fees applicable. If I'm not wrong, ZEC interest rates range from BLR minus 1.8% to 2.1% depending on banks. It is still a good bargain for those who is getting BLR plus 1% to 2.5% from their current loan.

You could use this calculator to decide whether you should refinance or not.
=> Refinance Calculator

Kimmy was correct, I believe that a lot of family still paying housing loan installment and don’t know about this. Try to go back check that rate bank offer to you, if bank still offer you BLR plus (+) faster go change. You can negotiable with bank officer to revise the rate to minus (-). Hope this news can help somebody reduce that interest rate..

From the Refinance Calculator in Fiscal Wise, The following is my result.

Initial Loan: RM 203,000.00
Loan Interests: 6.88%
Monthly Repayment: RM 1,300.00
New Loan Interest: BLR - 2% = 3.5%





Anyone else tried the calculator? Care to share your results?

Thank you studylady....you are genius...... I always thought BLR + and never though BLR -. I fully understand now.

My home loan previously is BLR% + 0.28%,that's my fourth year installment.
But after that i applied to decrease my BLR% and at last they only offer me BLR -1.8%.
In this case,shut i apply again to decrease my BLR%?

Hey !

Do you know Public Bank Bhd offer house loan tenure up to 40 years which other banks only 30 years maximun?

I saved almost about RM900 monthly instalment and yet got cash of RM88k from the difference in refinancing.

adrian, BLR can't be reduce..current all bank should be 5.55%..u can try to reduce that -1.8% to -2.% or -2.3%..see bank can offer it or not...

my is:
BLR - 2.30%
BLR - 1.80%
BLR - 1.60%
BLR - 1.55%