Calculate the monthly instalment from bank a

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Walter bought a house at RM500,000 in January 2019. He gets from Bank A with the financing of 80% of the purchase price with a term of 35 years. He borrowed at an interest rate of 4.8% per annum monthly rest. In the beginning of July 2021, he gets an offer from Bank B to refinance the property at 3.5% per annum monthly rest for a duration of 25 years.

(i) Calculate the monthly instalment from Bank A.

(ii) Compute the loan outstanding amount at the beginning of the 18th month from Bank A.

(iii) What is the total interest he needs to pay on completion of his loan if Walter stays with Bank A?

(iv) Calculate the monthly instalment payment that Walter needs to pay under Bank B refinancing if he takes the offer immediately in July 2021.

(v) Advise Walter whether he should take up the refinancing offer from Bank B using relevant calculations as comparisons.

Reference no: EM132994145

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