House Loan review

OCBC flexi loan

For this loan is fully flexi for repayment.

how to reduce interest is only pay more than installment as commonly known. but instead is not necessary. you need to know in details on the loan especially housing loan. as this is the most huge debt in your life and could kill you if mistaken.

some past experience. 

basically there is 2 different repayment

1) Advance payment

- Naturally once you put in the money you cannot take out. 

- it say can reduce interest as well. but i don't feel interest reduce,(could be cut interest on interest)

- it useful if you go oversea and use advance payment to clear your house loan.(this can be done via standing instruction as well)

 

-- after experiment, don't do this. as i don't c the purpose of do this at all.

2) Capital repayment(principle)

very important as it really reduce the principle. interest reduce the next day.can see the results immediately.

- Naturally you pay $ in this still you need to pay installment. it wont auto go to installment.

- put in repayment of principal. may take back the money if needed follow the house loan. some expert recommend to keep this facility in case you need $ can immediately take out and no need do refinancing while paying less interest. (seem to be a good idea, but vary on individual)

- Highly recommend to do this if got extra $ as it really cut principle and reduce interest immediately.

Summary

Previously was stupid to pay all in advance. then some month advance some month capital repay.

NOW should pay installment. extra direct all go to Capital repayment.