Home Loan Prepayment Interest calculation is one of the grey areas from the borrowers perspective. As the average Home Loan tenure in India is 7-8 years therefore Home Loan Prepayment is very common. Borrower prepays Home Loan as and when he/she receives an annual bonus or on the maturity of the past investment. Instances of overpayment, wrong effective date, calculation of Prepayment Interest etc are common points of dispute with the Home Loan Provider. In my post, Home Loan Prepayment - 5 Important Points, i discussed the general points. Based on the feedback/queries of my readers, i decided ... Read More
5 Golden Rules of Home Loan EMI
Home Loan EMI is an important part of borrower's life till Home Loan is closed. Entire family think, eat, drink and sleep Home Loan EMI. I mean to say, all imp decisions of family revolve around this income "guzzler". As home loan is long term commitment therefore we come across various situations and turning points where we don't know how to handle Home Loan EMI. Any mishandling can have long term financial implications. In this post on "5 Golden Rules of Home Loan EMI", we will discuss 5 such imp rules which should be guiding light to decide. Rules for Home Loan EMI 1. Home Loan EMI as a ... Read More
5 Tips to Prepay Home Loan Faster
For any Home Loan Borrower, to prepay Home Loan is topmost priority. As i discussed in my earlier posts that Home Loan interest increase the overall cost of property. Some of my readers mentioned that they are availing tax deduction but they ignored the fact that they lost HRA (House Rent Allowance) component. At macro level, if your property is appreciating at 10% and at the same time you are paying 10% interest on Home Loan then net/real appreciation is NIL. Currently world economic crisis is keeping property prices under check. Instead of appreciation, property rates are decreasing in most ... Read More