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i have two flats costing @50lacs at pune no loan on this property but i have two property on that housing loan @20 lacs.now emi of this loan going from my salary .more income what i do?
Seems like you are part of ICICI Home Loan Dept and discouraging people not to continue with that.
Guys, If you have taken a loan from ICICI, it is better to refinance anyways as they are the biggest cheaters on earth.
Re: @vasanthi kannan
by PKB on Jul 10, 2010 12:00 PM
That is very true the ICICI bank are a big cheater and look for every possible ways of cheating, these crooks should be brought to book. PKB
1. The premium paid for the Property Insurance is gone with there is a chance of getting 40% only 2. The pre-payment penalty, interest thereon. 3. The processing charges paid for the first loan (interest thereof), and the processing charges to be paid for the fresh loan 4. Premium to be paid for the fresh insurance against your property
Though it looks rosy about the fresh loans, it is better to get reminded that, the teaser rates of interest is for a period of 1 year, then it will also up from year 2, the wise people may not go for a fresh loan (provided if they have plans to repay the entire loan) say within a period of 10 years or so.
Re: Home loan refinancing
by Ashok Pillai on Jul 09, 2010 03:27 PM
Well, you have an option of opting for the current rate for your existing loan from the same bank.. Only admin fee needs to be paid..
Ex. u r paying 11% for ur loan from xyz bank and the exisiting rate is 9.5%, you can go for the 9.5% rate by paying the applicable admin fees..
Re: Home loan refinancing
by Vijay Kumar on Jul 08, 2010 11:36 AM
I agree with you. I tried to get my loan re-financed several times but each time these factors brings me back and I opted to stay with current loan.
Re: Home loan refinancing
by Biren Shah on Jul 08, 2010 06:13 PM
yes - agreed but this is also one kind of monopoly business which RBI should intervene and stop. It means that even if customer is not satisfied, he can not change his bank unless he pays huge amount of money - this is completely in contrast of customer service principles. This is the reason that all banks are taking advanage of not lowering interest rates for floating loans - they know customer will be in big problem and they take advantage out of it.
Re: Home loan refinancing
by Pradeep Rekhawar on Jul 08, 2010 11:51 AM
One important point to understand is that initially EMI consisits of more of inerest and less of principle amount.
After paying for many years, we come to a situation when Interest & principle components become almost equal.
Hence, by going for a new loan we again get into the trap of banks, where they get interest first and we are left with only principle yet to be repaid.
Re: Re: Home loan refinancing
by vasanthi kannan on Jul 08, 2010 12:01 PM
Good points are coming out in the discussion board. It is sensible to reduce our other expenses, focus on the EMI components and have a target to get the entire loan repaid may be within 7 or 8 years. Also to look for the threshold limit of not attracting the pre-payment penalties.
Request rediff to publish articles that create awareness among the public and healthy in nature.
Re: Re: Re: Home loan refinancing
by venkat narayanan on Jul 08, 2010 05:50 PM
Dear Vasanthi, you seem to be pretty knowledgeable about this. Can you please advise me on a few things. I am very naive when it comes to finance related stuff like this but I do have a home loan.. So looking for some genuine advice..
Re: Re: Re: Home loan refinancing
by Biren Shah on Jul 08, 2010 06:29 PM
Vasanthi - dont misguide people. You can not go and reduce expenses when inflation goes so high - you need ways to reduce your fixed expenses and this is the way rediff has shown. If you have so much excess money - enjoy and even pre-pay loan. But lt rediff publish this for the people who need. You are one of those who will reduce your expenses but dont fight against corrupt practice of banks asking these charges.
Re: Re: Home loan refinancing
by Biren Shah on Jul 08, 2010 06:21 PM
I dont agree. Yes, initially interest is higher, but it doesnt change with lender. With original or new, principal and interest component remains same. For example, you have 30 lakhs outstanding and 10% interest, it is 3 lakhs yearly and 25000 interest on current month - other part is principal. Even if you change lender, it wont change.
Re: Re: Home loan refinancing
by Shreeom Patnaik on Jul 08, 2010 05:18 PM
i agree with Mr Pradeep , which i realize when i switch over to lower rate, refinancing required fresh debt service benefit analysis. initial year we are servering more on interest part.Hence what ever you had paid will go waste
Re: Home loan refinancing
by Sandeep Divekar on Jul 08, 2010 11:52 AM
I agree absolutely, rediff articles are just some dumb copy pasting of the articles from western countries which are not applicable to indian markets. Where are interest rates easing out in india ? And cant you opt for floating rates inthe first palce ?
Re: Re: Home loan refinancing
by Biren Shah on Jul 08, 2010 06:24 PM
no - i dont agree. This is very useful and many times, people need to reduce their monthly flow - if you dont need, dont read. but some people like me needs it and I can definitely say - my analysis says it helps me - not very much - but definitely to some extent. And dont ask about floating rates - In India - its floating only one side - only upwards.
