How To Use The Loan Calculator

Having problems in using the loan calculator? Nothing to worry, here we provide a complete guide in helping you the way to fully utilize the function of this calculator as we hope that you can understand your financial status thoroughly and wish also our service can assist you in solving any kinds problem.

Descriptions for each of the fields are provided below, as well as examples for how to use each of the options:

• Periods Per Year: The number of payments per year. Enter 12 for Monthly, 52 for Weekly, for Annual etc.

• Loan Amount: This is the amount that you have borrowed. You can also enter your current balance, if you also adjust the Term of Loan to be the number of years left to pay off the loan.

• Annual Interest Rate: This calculator assumes a fixed interest rate, and the interest is compounded each period.

• Payment (Per Period): This is the amount that is paid each period, including both principal and interest (PI).

• Term of Loan (in Years): Mortgage loans usually have 15 or 30-year terms. If you entered your current balance in the Loan Amount, then for the Term enter the number of years you have left until your loan is paid off.

This calculator demonstrates 4 different types of loan calculations.

Option A: Solve for the Loan Payment using PMT
Use this option when you know how much you need to borrow and want to find out how the interest rate or term affects your payment. For example, a 5-year, RM 100,000 loan at BLR (6.75%) interest results in a monthly payment of RM 1,968.35. The total interest paid over the life of the loan is calculated to be RM 18,100.76

Option B: Solve for the Loan Amount using PV
Use this option when you know how much you can afford to pay each month and want to find out how large of a loan you might get. Keep in mind that there may be other fees in addition to standard loan payment (principal+interest), such as insurance, taxes, etc.
For example, with a RM 2,000 monthly payment, if you got a 5-year loan with a BLR (6.75%) interest rate, the loan amount is calculated to be RM 101,608.15

Option C: Solve for the Interest Rate using RATE
It isn't as common to solve for the interest rate because you may not have any control over what your interest rate can be (other than shopping around for the best one). However, in order to get the best offer from bank, we are ready to serve you with our wide relationship network between the banks. For example, a 5-year loan with RM 100,000, for bank A, they might be offer rate with BRL-1.8% (4.95%), by using the option A, the total interest that you paid is RM 13,090.01. For the same case where bank B can offer rate with BRL-2% (4.75%), applied the same option A, the total interest that you paid is RM 12,541.47, thus the total interest that you can save is RM 548.54, with just a different in 0.2% of the interest rate, so can you imagine how much you can save if the loan amount is RM 200,000, RM 300,000? The interest that you save is double, triple or quadruple than this.

Last thing to be notes : BLR-2% is still not the best offer, by giving us the chance, we certainly can help you to find offer that better than this!!!

Option D: Solve for the Term using NPER
Use this option if you want to pay off your loan early by making extra payments. For example, refer back to the example for Option A. For the same loan amount and interest rate, if you pay RM 400 extra each month or RM 2368.35, the term is calculated to be 4.0285 years (instead of 5 as in option A) - meaning you'd pay off your loan almost 1 year early. You'd also end up paying about RM 3609.86 less interest overall. This assumes that there are no penalties for making extra payments.
Some people prefer to get loans with longer terms and make regular extra payments. The benefit of this approach is that if you run into hard times, you can stop making the extra payments. The downside is that if you don't have the discipline to make the extra payments, you'll end up paying more interest overall.

So, we are ready to serve you with our top quality of services. Please do not be hesitate to call us for further information.

Service Available

As a financial consultancy, we provide various type of services including as mentioned
below:

1. Mortgage Savings Program

2. Debt Restructuring

3. Legal Advisory on Sales & Purchase Agreement and Loans Documents

4. Assistance in Loan Application. We also cater for loans with difficulty in approval.

5. Loan Processing and Security Document (Loan Agreement, Sales and Purchase Agreement)

if you have any query, you could also contact us; we shall be happy to assist you

Contact Us

Locations

MORTGAGE-TO-HEDGE SDN BHD
21-2,2nd Floor, Suite 3,
Jalan USJ 10/1, Taipan Triangle
UEP Subang Jaya
47620 Subang Jaya, Selangor.


View company location in a larger map

Please contact:
Mr Jonathan Yeow 016-2063206
Mr Steven Tay o13-3939060

Stamp Duty

Sale and Purchase transaction

Ad valorem stamp duty is payable on the instrument of transfer, ie in the case of a property with individual/strata title, the memorandum of transfer and in the case of a property without title, the deed of assignment. The sale and purchase agreement is always stamped nominally at RM10/-

In cases where you purchase a property directly from a developer and the property does not have an individual/strata title, then there is no ad valorem stamp duty payable until the individual/strata title has been issued. In many instances, a purchaser sells his property before the individual/strata title has been issued and thereby avoid the need to pay any ad valorem stamp duty.

In all other instances, as the purchaser, you will have to pay the ad valorem stamp duty on the instrument of transfer, be it a memorandum of transfer or a deed of assignment.

Purchase Price (or Adjudicated Value)	Rate
First RM100,000.00	1%
From RM100,001.00- to RM500,000.00	2%
In excess of RM500,000.00	3%

Following from the Malaysia Budget for the year 2008, ad valorem stamp duty on the instrument of transfer will be reduced by 50% for houses of less than RM250,000/-. Further details have yet to be released by the Government.

Loan Documents

Ad valorem stamp duty calculated at a flat rate of 0.5% of the loan amount is payable on the principal loan documents. All other subsidiary loan documents will be stamped nominally at RM10/-

Other Disbursements

In addition to the stamp duty payable, the following disbursements will be incurred:-

	a.	fees payable on the registration of documents requiring registration (at land office or high court);
	b.	stamp duties or fees;
	c.	traveling expenses;
	d.	fees paid on searches with the land office, the official receiver/ assignee office, CCM;
	e.	costs of extracts from any register or record;
	f .	other disbursements reasonably and properly paid and incurred

High time to refinance your loan?

The Star
Saturday May 2, 2009

WITH lending rates at historical low levels, the obvious question to ask is – should one refinance their home loans? The answer is simple – if there are net savings to be enjoyed by refinancing the existing loan, then yes. If the impact is neutral, then there’s little point going through all that hassle.

Two years ago, banks were charging home buyers base lending rate (BLR) “plus” interest rates for their housing loans.

Today, the BLR for mortgages has fallen to a “minus” level. In addition, then, the average BLR was about 6.75% which was later adjusted to about 5.55% currently.

The fall in lending rates followed the unprecedented cut in overnight policy rate (OPR) by Bank Negara Malaysia since November last year by 150 basis points to 2% as it stands now.

Over the week, the central bank paused on its rate cut, leaving the OPR unchanged.

This has led some economists to predict that there will be no more OPR cuts for the rest of 2009 and 2010 which may give borrowers a reason to lock in their interest rates for housing loans at current low levels.

If the economy stabilises by next year, analysts expect interest rates to rise. But the views are mixed as there are also analysts who feel that if the situation worsens, Bank Negara could further cut the OPR.

Dr Choong Kwai Fatt, tax consultant and associate professor at the Faculty of Business and Accountancy, Universiti Malaya, opines that now may be a good time to refinance home loans.

“For refinancing, we recommend customers to change to Flexi loan, which allows them to make additional repayment and draw balance at any time with convenience of automated teller machine cards and cheque books. In addition, any amount in the current account is used to reduce the outstanding loan amount, hence there are interest savings,” he says.

AmResearch deputy head of research Fiona Leong concurs. She says banks are proactively trying to retain their customers from changing to other banks during this period as they scout for better packages.

“Customer retention is the name of the game for mortgage loan,” she says, quoting Hong Leong Bank Bhd’s statement.

In view of economic uncertainty, Leong says most economists expect some downward revision in BLR but none expect them to be sustantial.

Home owner Ang, 42, is planning to refinance his outstanding loan of RM153,000 given the prevailing low interest rates.

He’s not sure whether to do so with his existing bank or switch to another but it all depends on which one will offer more savings.

He took a RM200,000 10-year loan with current BLR plus 0.25% from a local bank three years ago and he has seven years remaining to service his outstanding loan.

By refinancing with his existing bank, he will be able to avoid the penalty fees of RM4,590 (imposed on those who switch banks) but the lending rate may be higher than what other banks could offer him for the rest of the loan tenure.

If he were to refinance, Ang says his monthly instalment will reduce to RM2,120 from RM2,240 per month.

Another option is for him to maintain the monthly instalment but reduce his loan tenure.

Hoping to take advantage of the situation by wooing customers, some banks such as EON Bank is offering packages that partially absorbs customers’ early settlement and legal fees but with slightly higher interest rates.

Public Bank Bhd is offering BLR minus 1.8% to 2.0% but the bank will not absorb penalty charges incurred by customers for switching bank during the lock in period.

Typically, banks’ lock in period is about five years; customers who switch banks before this period ends will have to fork out a penalty fee which comprises 3% of total loan amount or loan outstanding or a minimum penalty of RM5,000-RM10,000.

The fees however vary from bank to bank. There are other costs involved in switching lenders as well such as search fees, inspection fees, stamp duty and loan legal fees (usually costs less than 3% of total loan).

It is important to note that all rates and terms and conditions are negotiable, and hence, vary on a case by case basis.

Source:
http://biz.thestar.com.my/news/story.asp?file=/2009/5/2/business/3819574&sec=business

Categories of Housing Loan

4 Main Categories of Housing Loan

The following we will share with you the 4 main categories of Housing loan types in Malaysia. Each of these have their own different functions. Generally, banks housing loan packages fits into this categories. In order to choose the most suitable bank's package it will be good to know the difference between this categories. This is the most basic thing that you need to know before choosing a Home Loan:-

CONVENTIONAL HOUSING LOAN
•Monthly repayment of facility at stipulated date
•Payment of Principal and Interest
•Monthly Rest
•Have to inform bank on prepayment and withdrawal
•Half Yearly or Yearly Loan Statement
•Not so Flexible

OVERDRAFT
•Interest Calculated on daily basis
•Only pay interest until facility is prepaid
•Amount Prepaid can be withdraw anytime
•Cheque Account Facility
•Monthly Statement
•Interest Rate is higher than normal loan

FIXED LOAN
•Fixed tenure, interest rate and installment every month.
•Banks offered under Islamic Banking under Syariah Principles.
Higher Interest Rate than normal loan.
•Insurance Companies also offering under their Fixed Rate Package

FLEXI-LOAN
•Combination of Term Loan and Overdraft
•One Account
•Monthly installment to be paid
•Interest Rate calculated on Daily Basis
•Interest Rate higher than normal loan
•Can Make extra Payment anytime to reduce Principal and save interest. Extra Payment can be withdraw anytime.
•Utilization of Cheque Account, ATM and Internet Banking
•Monthly Statement
•Set-Up Fee of RM200 and Monthly maintenance Fee of RM10.

Should you consider refinancing your mortgage?

Refinancing?

The purpose of home mortgage loan refinancing is to acquire a mortgage at a lower loan interest rate for you home refinancing and utilize substantial monthly savings for more immediate requirements.

If you are less than happy with your existing mortgage lender, a home mortgage loan refinancing could get you with a better terms or a lower payment amount. If you used a risky adjustable rate mortgage to purchase your home and are due to have your loan reset it could give you much needed financial peace of mind.

Why should i refinancing my house? Does it make any sense?

Probably yes, probably not. Here are a few things you should ponder, would you like to have:

1. A better interest rate
2. A lower monthly instalment
3. To consolidate your debts which attract high interest rates, ie, credit cards or hire purchase
4. Additional funds for renovation of your home or personal use
5. To enjoy new features offered in other loan packages, ie all-in-one account
6. Enjoy some tax advantages.

Cost of Refinancing?

If properly advised, refinancing can save you a substantial amount of money. However the disadvantage is the cost involved in refinancing, ie legal cost, stamp duty and disbursements. You will have to weigh whether or not the benefits (ie the saving in interest) in the long run outweigh the short-terms costs of refinancing. If you are deterred by the costs of refinancing, there are loan packages where the new bank or lender will absorb and pay the legal cost stamp duty and disbursements of refinancing. Of course such lenders will price such costs into the interest rates offered but invariably refinancing will save you money if your existing loan is more than three (3) years old. Types of Home mortgage refinancing Loan you can opt in for Rate and Term Refinancing- This refers to a change in the rate and term of an existing loan or mortgage. Rate and term mortgage refinance allows you to secure a lower interest rate, change the terms, or opt for a lower payment plan all without paying off any additional debts. Cash-Out Refinancing- A cash-out refinance differs from rate and term refinance in an aspect that the new loan amount is larger than the existing loan amount due to the additional cash you take with the new loan. By opting for a cash-out refinancing, you can pay off your debts on top of their existing loan amount, and changing the rate and term of the existing loan at the same time. If you need to know more about refinancing drop us an e-mail at mortgage2hedge@gmail.com