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REFINANCING
SAVINGS ILLUSTRATION
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In refinancing your housing loan, you bring
down the average interest rate, thereby saving for yourself thousands
of dollars in loan repayments.
Below are illustrations showing interest savings for the first
five years and total interest savings over the tenure of your
loan when the average interest rate is lowered through refinancing.
| Illustration 1 |
| Assume
|
Current
Loan : |
S$1,000,000
|
|
Tenure
: |
25
years |
|
Current
Interest Rate : |
6.25%
(monthly rest) for next 5 years |
| Refinance |
Year 1 - |
3.50 % |
fixed |
|
Year 2 - |
4.50 % |
fixed
|
|
Year 3 - |
4.75 % |
discounted against board rate |
|
Year 4 - |
4.75 % |
discounted against board rate |
| |
Year 5 - |
4.75 % |
discounted against board rate |
| Total Interest Savings for 5 years
= S$89,733.00 |
| Illustration 2 |
| Assume |
Loan : |
S$1,000,000 |
|
Tenure : |
30 years |
|
Average Interest Rate over
tenure : |
6.0% (monthly rest) |
| Refinancing |
Loan : |
S$1,000,000 |
|
Tenure : |
30 years |
| |
Average Interest
Rate over tenure : |
5.0% (monthly rest) |
|
Total Interest Savings over Tenure of Loan = S$225,824.00
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| Illustration 3 |
| Assume |
Loan : |
S$1,000,000 |
|
Tenure : |
30 years |
|
Average Interest Rate over tenure
: |
6.5% (monthly rest) |
| Refinancing |
Loan : |
S$1,000,000 |
|
Tenure : |
30 years |
| |
Average Interest Rate over tenure
: |
5.0% (monthly rest) |
|
Total Interest Savings over Tenure of Loan = S$342,887.00
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