Can the mortgage reduction works in Malaysia?
I had attend a seminar about mortgage reduction. I am planning to dump in a sum to my housing loan to save on interest . I had check online about the mortgage reduction in U.S. But not sure if this work in Malaysia?
It works on any loan that doesn’t specifically say it can’t..
Why do Primerica people say interest rates don’t matter?
Over a year ago, I had someone from Primerica try to convince me to turn my 5.75% 30 year mortgage into an 8% “22” year mortgage ..which would be paid ‘biweekly’.
His rational was that ‘interest rates don’t matter’ and I would be saving because I could pay the mortgage off earlier.
When I showed him that I would be paying several thousand more in interest in the first few years to Primerica as opposed to keeping my current mortgage and adding an extra payment at the beginning of the year (26 biweekly payments =13 monthly payments a year)…he still insisted Primerica was better.
I mean, people say it isn’t a scam because its a legitimate business..well..check advance businesses are legitimate and lawful businesses too..and rip you off.
So..why do Primerica people completely disregard monetary policy (the importance of interest rates on the economy) and try to sell people high interest rate mortgages?
Interest rates do matter. Primerica reps are wrong. They are just not counting on you being someone who understands numbers. There is no way an 8% mortgage is better than a 5.75% mortgage. The “magic” of bi-weekly payments is the extra payment you are making, not the fact that you are making payments every two weeks.
Also, I believe that their mortgages have a huge pre-payment penalty. So, even if someone figures out that the Primerica mortgage is a bad deal, refinancing out of it will be very expensive.
There are a lot of things in this world that are legal but are bad for you. Primerica is one of them.
What to do or not do if my mortgage company is uncharging me in interest ?
Years ago my X and I had to remortgage our house in a hurry…The interest rate was prime plus 3% I think (our credit was not very good at the time)…A few years ago, after we were devorced, I got a check in the mail from the mortgage company…It said it was for overpayment of interest..I called and it was explained to me that an internal audit had found that I had been overcharged in interest, she couldn’t say for how long, and that yes, the money wass mine…Cool.
Well ever since then, my monthly statements have said that the apr is 3.00%…It’s lowered my payment and I’m grateful for that but lately I’ve been worried that it’s a terrible mistake on their part and that they may catch it and hit me with a whole bunch of back interest..
Why do you think it was lowered ? Did someone forget to add the “prime” after their initial mistake was caught ? Can they sock it to me if it is a mistake and they find it ? What should I do, just keep my mouth shut ??
I forgot to add…The intial mistake was caught right after my mortgage was sold to another company.
It sounds like they may have made a mistake. However, rates are down considerably since the bubble burst. If you are concerned about it you might want to contact them and get something in writing. On the other hand, you may want to leave things alone. With that low an interest rate I would try to get it paid off as soon as possible. That is an excellent interest rate. You could continue making the same payment as before but designate the over payment go toward reducing the principle.
What is the best way to make extra mortgage payments, in order to shorten the term of my mortgage ?
Okay, so I am refinancing my mortgage, with hopes of paying off the loan in 5 years or so. I am going to have a 30 yr mortgage with a 5.125 rate, but my checking account earns 6.125%. so heres the real question:
Should I just pay the minimum and save the rest, then make a lump sum payment in a couple years,
Should I pay more than the minimum each month, and not have anything in savings.
Which one will save the most in mortgage interest? and get the loan paid off the quickest…
Okay, So I am getting 6% on checking, and I am financing through ING Direct.
Here is a link for the checking account:
It is a small, local bank that is offering the rate.
anyway, I still don’t have an answer to the question, pay more now, or save it in the checking account and pay a lump sum later…
Also, the 30 year loan is a CHEAPER rate than a shorter term loan-Go figure….
So your bank charges you interest at 5.125, but gives you interest at 6.125? How do they make money then? They are paying out more than they are taking in. Even if your figures are correct, I’d vote for getting rid of the mortgage asap. The interest rates could change, but if you have the balance down, it won’t be a worry to you. A smaller balance means less interest charged. I presume you have a 30 year mortgage because a shorter period has a higher rate. Read the small print and see if you will have penalties to pay if you pay down early.
I paid off mine in less than 5 years. I paid in each week what I had agreed to pay per month. Or you could divide your monthly figure by 4, and paid that in weekly. That equates to 13 monthly payments instead of 12. Boost it even higher whenever you can. But keep adding to the savings also. Have a fund stashed in case of emergency.
Mortgage Company won’t reduce interest on equity line/what to do?
My mortgage company was sure quick enough to raise the rate on my equity line of credit when they could, but now have overcharged me for many months once the prime lending rate was starting to be reduced. I’ve been dealing with them for about a month now, and getting the royal run-around, as usual, but hey, they owe me a lot of money! Myquestion is this..can I sue them? My interest payments are automatically debited from my checking account on the 20th of the month, and in spite of my calls for the past month, they took another INFLATED payment out of my account yesterday.
I found a complete list of all prime rate changes for the past several years and have my statements as proof that they are handling my account in a fraudulent way. Please, some good advice needed. Thanks in advance
What do your loan papers say? Find your copies from where you first took out the line of credit and read what it says about interest. Does it say the interest will come down with prime? If not, then they have no reason to lower it. Whether you can sue them and win or not depends on what’s in the contract that you signed.
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