![Quote](images/SultanThemeVB4R/misc/quote_icon.png)
Originally Posted by
di
We have fully paid up our first property and looking around for the 2nd for home-stay much nearer to our parents. We are thinking of renting the first property to help pay off the loan for our 2nd property..
1) Should we redeem the 30 year bank loan earlier (i.e. in order to reduce the interest incurred) for 2nd property with both CPF and the rental $? or just let the rental instead of CPF to pay off the bank loan?
2) If we sell the 2nd property after 15 years, how will the bank charge the interest cost? i.e. do they charge for the first 15 years i.e. point of sale or the entire 30 years loan tenure?
Your advise please.
There is no Rule 78 for mortgage loan, unless you take interest payment only mortgage which I dont think is available in Singapore.
You can always use the bank mortgage calculator to calculate how much interest you are paying per year vs principle payment. My guess is that based on current interest rate only around 30-35% of what you pay every month will go to interest payment.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."