How to Lower the Interest Rates of Your Home Loan?

 I would like to share with you of 5 points that you can consider to take in case you would like to lower the interest rate of your home loan.

1. Quantum Loan

The amount of the loan which you receive from a bank or financial institution, which may make as much as 90% of the price of the home that your purchase. The lower the quantum loan you apply for, you will expect to get the lower interest rates.

2. Refinancing

It is possible for you to refinance you house in order to obtain lower rates once again, especially after you have finish your lock-in period with the bank that you got the loan for which is going to expire in two months or has been expired. You may possible increase the amount of your home loan, which will allow you to save more money from paying an excessive amount for the house. In Malaysia, latest loan rates are generally lower than the inflation rates which indicate that getting more loans is in fact can benefit the consumer. In most occassions, loans tend to be the most affordable ways of financing accessible as opposed to auto loans, personal loans or other forms of loan.

3. Interest-only mortgage

This is when your monthly repayments only cover the interest part. The repayments for the principal of your loan are made merely at the end of the loan term. Generally, people are choosing for interest-only mortgage in case they are plan to refinance their loan at the end of the loan term.

4. Interest-offset mortgage

By going for this type of mortgage, you will be able to gain interest (even though just a specific fixed percentage, normally two third of your deposit amount) on your loan deposit which you can use to offset your mortgage interest. The remaining of the loan deposit will receive a lower rate. This can be an appealing choice in case you have excessive money in banks that earn only low interest.

5. Mortgage Over Finance (MOF)

A percentage level implying the amount of the home loan with regards to the value of the property. As an example, a property worth RM600,000 that carries a mortgage loan of RM480,000 will get 80% of MOF. Nearly all banks are having better home loan offers for MOF 80% or less than 80%. In Malaysia, the utmost MOF that lenders can legitimately offer to borrowers is up to 90% only by Eon and CIMB Bank.

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