Are you a RUMAWIP buyer looking to save money on your mortgage? Most buyers opt for 100% financing, known as SKJP, with Maybank and RHB leading the way. In this guide, we’ll show you how making larger monthly payments can help you save money over the life of your loan. We’ll use an RHB mortgage package with a 4.55% interest rate and a 35-year tenure as an example.
First google for a amortization calculator or simply click THIS
Step 1: Key in loan amount RM 300,000
Step 2: Key in the interest rates 4.55%
Step 3: Key in the tenure 35 years is you are age 35 and below (if you are above 35, use this formula 70 – your age = max tenure)
Step 4: Key in the extra amount of monthly payment you can afford to pay.
After entering your information, the calculator will show you how much you can save by making extra payments. For instance, paying an additional RM 257.15 monthly can result in significant savings over the loan’s duration. Interest rates can fluctuate, so for more precise calculations, repeat these steps if aiming for higher savings, such as RM 150,000 in interest savings.
Now as we use RHB as a model here, please take note that RHB Conventional is Full Flexi (A flexi loan allows borrowers to not only make advance payments to reduce their mortgage interest, but also to withdraw the extra payments whenever they need them) & RHB Islamic is Semi Flexi ( allow to make advance payment to save on profit rate but unable to withdraw the extra payments).
As for Maybank it is a Term Loan but slightly Flexi. You can make advance payment to save on interest but you have to inform the bank via phone call to branch or walk in after the payment is made. MBSB offers SKJP financing; advance payment to principal requires you to notify bank 1 month in advance.
Elijah is an esteemed real estate agent who has dedicated his expertise to the RUMAWIP program since 2018. With a reputation for unwavering honesty, he navigates the real estate landscape with straightforwardness and analytical insight. Alongside his role as a real estate agent, Elijah shines as a marketing consultant collaborating closely with RUMAWIP developers. His dual perspective and commitment to affordability make him a trusted figure in the industry, consistently guiding clients and stakeholders toward informed decisions and successful outcomes.
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