facebookHi Seedly community, would like some advice for my parents housing loan. was shocked that my parents are financing a $75,000 loan at a interest of 4.35%, for the next 7-8 years. Any advice? - Seedly

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Anonymous

09 Sep 2020

Property

Hi Seedly community, would like some advice for my parents housing loan. was shocked that my parents are financing a $75,000 loan at a interest of 4.35%, for the next 7-8 years. Any advice?

Discussion (1)

What are your thoughts?

Elijah Lee

Elijah Lee

09 Sep 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

I am no mortgage specialist, but even refinancing may be difficult as the quantum is low (less than 6 figures).

You might want to see if there is a way to pay off the loan quickly (i.e. paying it up), there may be penalties, but if you do the maths with a mortgage calculator, and you end up saving significantly on the interest, it will be worth it.

Considering that they will pay anywhere from $12K to $13K interest, even an early repayment penalty of $2K will still save them some funds in the long run.

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