Important point missed is one cannot sell his flat till loan is fully paid.Also God forbid ,but if some unfortunate accident happens to loan holder in 5thyear onwards, what happens .from where can he repay the loan alonwith interest
Re: Rubbish Article
by Abhijeet on May 26, 2010 07:25 PM
Now a days there are options in which one can transfer the loan in case he wants to sell the property to the buyer. Also for your second point in case there happens an accident for that there are options of Insurance on Loan which can repay your loan amount.
How can rediff post such immature article. Most facts are already known by loan buyers. The author has not cared to even mention the risk of rising interest rates which can never complet ur own if u r a salaried.The article only applies for fortunate person like rahim who can afford to gather 24 lac in 3 years time, which is highly unlikely in normal cases. Best way is to find a rich wife whom u can marry. Or else beter part pay off ur loans and keep ur tenure not more than 5-10 years. So that u save much more in interests as well as take tax benefits.
I had taken a loan of 12 lacs in 2006 from HDFC. I used to pay around 12,000 per month towards EMI. Recently I made full pre-payment. (Thanks to 1.5 yrs onsite trip). Trust me now I feel much relieved. No pressure to pay the EMI. Also, I have the option to invest every month in SIP or recurring savings a/c which will give me guaranteed return. Guys, if you have disposable money in your hand, go for pre-payment.
Re: Always prepay your housing loan if possible
by Ajay Pai on May 26, 2010 08:47 PM
I do part prepayment every quarter... Kind of SPP (Systematic Prepayment Plan) :)
This article does not make any sense...Even a simple calculation will make one understand that the debts are always better paid early...No matter even if the Early EMIs are comprising more of interest n less of principle.Mr. Author if you advise people to keep on payin their loans for complete terms say eg 20years they will end up payin double the amount.REDIFF BE SENSIBLE WHILE REPORTING...PEOPLE OF INDIA ARE NOT FOOL...WE ARE VERY BEST WHEN IT COMES TO MONEY....
Friends, Rahim will be better off buying another apartment (On his Wife/Mother/Daughter's name)with this substantial sum of money and availing of rentals which could help pay the future EMIs. That would leavae him richer and wiser. Regardz & thanx Rags
