Home loan - to convert or refinance?

Guest · Post by **Guest** » Mon Aug 07, 2006 12:07 pm

Hi, please advise.
Current home loan bal $500k, tenor 13 yrs, interest rate 4.05% Sep 2006 (start of yr 2), will increase to 4.8% in Oct 2006.
If convert loan with same bank, interst rate is
1. variable 3.4% (yr1), 3.75% (yr2 & yr 3); lock in 2 yrs
2. fixed 3.7% (yr1), 4.45% (yr2), 3.75% (yr3); lock in 3 yrs.
Both 1.5% penalty for partial prepayment/full redemption during lock in.
If refinance with another bank, interest rate is
1. variable 3.25% (yr1), 3.5% (yr2), 3.75% (yr3); lock in 2 yrs, 1.5% penalty for partial prepayment/full redemption during lock in
2. fixed 0% for 25% loan & 4% for 75% loan; lock in 3 yrs. Can prepay up to 30% of 25% during lock in. Excess prepayment 1.5% penalty.
If fully redeemed loan with current bank now, must pay penalty 1.5% on $500k & refund legal fees subsidy $2000.

Which package is the best? Why? Amt of savings?
Thanks.

Post by **Dennis Ng** » Mon Aug 07, 2006 2:21 pm

thanks for your question.

Based on information you provide, there're definitely BETTER packages out there. We'll contact you via email shortly to show you our detailed analysis separately.

It might not be appropriate to show the analysis over here at the forum since the packages offered differ for different types of properties, different loan amount and even different profile of client.

Alternatively, you can call us at 6339 9255 or 6339 9846 or email to us at info@HousingLoanSG.com for a FREE unbiased analysis.

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Post by **Dennis Ng** » Fri Nov 10, 2006 2:31 pm

Client confidentiality is something we will NEVER compromise. It is not appropriate or suitable to discuss a specific client's specific situation in detail over the internet.

Some of the details are very sensitive, eg:

1. is this house for investment or owner occupation
2. do you intend to sell the house within 3 years?
3. how much cash/CPF do you have?
4. what is your income?
5. what is your age?
6. how is your credit profile? do you have any other loans? do you have any delay in repayment?

Thus, we suggest that if people want to discuss their situation in detail, the best is for them to call us at 6737 8801 or 6399 9255 or email us at info@HousingLoanSG.com