In 2010 the BLR rate change again, I believe most people who serve the home/housing loan at this moment will feel uncomfortable when want to pay the home/housing loan installment each month because it normally almost 40% to 50% of the monthly income. So how MHL-Malaysia Home Loan can help you to live a more comfort life?



Let’s take a case study by assuming:

Refinancing Case Example 1:

1. Age: 35 years old
2. Initial Loan Amount: RM300,000.00
3. Average Interest Rate for the pass 5 years: 5.82% (Average BLR = 6.31% for past 5 years)
4. Term: 30 years
5. Total interest need to pay: RM326,000.00

Outstanding Loan vs Loan Tenure

• The total money that is paid to settle the home loan amount plus interest is equivalence to a whopping total of RM668,000.00 whereby the interest paid is RM326,000 on top of the RM300, 000 loan amount. (If you current interest is more than 5.82% then you will be paying a large amount of interest)

Refinancing Your Home Loan/ Mortgage
There are 3 methods that you could save by refinancing your home loan. Those methods are able to help you save a lot on the interests paid for the home loan and others loan such as personal loan, business loan and credit card.

First Method: Reduce your monthly installment

Before Refinance	After Refinance
Outstanding Loan = RM277,000.00	Outstanding Loan = RM277,000.00
Interest Rate: Next 300 months = 5.82%	Interest Rate: Next 300 months = 6.05% -1.80% = 4.25%
Installment = RM1,764.00	Installment = RM1,500.00
Remaining Interest Paid = RM 240K	Remaining Interest = RM 170K
Total Interest Save  = RM 0	Total Interest Save: = RM240K - RM170K = RM 70K
Monthly Installment Save  = RM 0	Monthly Installment Save: = RM 1,764 - RM 1,500 = RM 264.00

Refinance Method 1: Reduce monthly installment

 By referring to above home loan case study, after paying the installments for 5 years, the outstanding loan amount is estimated to be RM277,000.00 and estimated interest remaining of RM240K based on the monthly installment of RM1,764.00
By refinancing the home loan, assuming the new interest rate is whole tenure 4.25% , the monthly installment has been reduced to RM1,500.00 per month for the remaining 25 years. With the new interest rate, now the total interest that is needed to pay for the home loan is reduced to RM170K. 
After refinancing, you are not just save RM264 per months but you also save another RM70K home loan interest, so why wait!!! Hurry up and refinancing your home loan now...
Second Method: Retain Monthly Installment
 

Before Refinance	After Refinance
Outstanding Loan = RM277,000.00	Outstanding Loan = RM277,000.00
Interest Rate: Next 300 months = 5.82%	Interest Rate: Next 300 months = 6.05% -1.80% = 4.25%
Installment = RM1,764.00	Installment = RM1,764.00
Remaining Interest Paid = RM 240K	Remaining Interest = RM 126K
Total Interest Save  = RM 0	Total Interest Save: = RM240K - RM126K = RM 114K
Loan Tenure Save = 0 months	Loan Tenure Save: = 65 months
Monthly Installment Save  = RM 0	Monthly Installment Save: =RM 0

Refinance Method 2: Retain monthly installment

By retaining the original monthly installment of RM1764.00, while refinancing the home loan using the new interest rate whole tenure 4.25%., you will not only save more on the interest paid, the loan term has also been reduced up to 65 months. Not only that your home loan is settled earlier, with the shorter loan term, the interest amount that is paid for the remaining home loan is RM126K. That is a huge total savings of RM114K.
YES! Why wait if you are already thinking of refinance.

Third Method: Refinance and Cash Out 

Before Refinance	After Refinance
Outstanding Loan = RM277,000  Property Value = RM400,000	Outstanding Loan = RM277,000 Property Value = RM400,000 New Loan Amount = RM400k x 90% = RM360K
Interest Rate: Next 300 months = 5.82%	Interest Rate: Next 300 months = 6.05% -1.80% = 4.25%
Extra Cash = RM 0	Extra Cash = RM360K - RM277K = RM83,000
Monthly Installment = RM1,764	Monthly Installment = RM1,950

If you are urgently need extra money for your investment and business capital. Home loan is one of the lowest interest rate in Malaysia compare to an personal loan may charge you up to 9% to 12% per annual. Beside that, if you have a outstanding bills in your credit card, it would be wise to cash out from your home loan and settle those credit card bills. CREDIT CARD is Dracula.. be careful...

The mortgage and financial consulting services are offered to you FREE of charge without any obligations. Kindly apply your home loan online or contact us via malaysiahomeloan@gmail.com if you need any enquiry. Thanks