Car refinancing?

[Reuters]

i am currently with DBS already.. can i re-finance with them again to cut short my loan term from 7 yrs to 5 yrs? or i must find other banks to re-finance in order to enjoy the lower interest rate?

[Ultramega]

I believe it is possible to shorten the loan period. But to lower the interest rate with the same bank, most likely cannot la.

[Axela72]

I am still a bit confuse with rule 78. In rule 78, are we be penalized with 20% or 80% of the interest that we still owe the bank?

 

For example if I still owe the bank 10k of interest till date, do i need to pay them 2k or 8k of interest if I am going for early redemption?

 

Kindly advise..thx

[Muddy]

There are 2 components here.

 

1st - Rule 78. Computes the amount of interest rebate you'll "enjoy" for Full Early Settlement.

 

2nd - 20% Penalty of the interest rebate for Full Early Settlement. Some may have this penalty waived.

 

 

That means, you may get back only 80% of the interest rebates after rule 78 computation.

Edited November 28, 2008 by Muddy