1. home loan is good option. becasue however rich a person be...he may not be able to construct home without loan..... 2. upto what extent we need to go for cost of house???? thumb rule is 5 times annual income. 3. take home loan at early stage of life.....go for longer tenure...so emi will be affordable for lower income which normal person earns at early stage of career. 4. by half of tenure is over....let us say..for loan of 20 years, 10 years completed....start paying top up...most banks allow payment of upto 6 months emi for each month as topup....in this way...loan may be cleared by 75% of original tenure...for example...if loan was for 20 years, it may be cleared by 15 years...... 5. in this way we get home...clear home loan also.........
I suggest never ever take any kind of loan untill or unless you always have equivalent amount of money with u .Though it is not always possible as u have to take loan for heavy investment.I will suggest not to take any loan ...
Re: Home loan repayment
by Srinivas T on Oct 04, 2012 05:49 PM
Home loan is an investment and it helps save tax through rebates hence.other loans like personal loans and credit card are not good
Re: Home loan repayment
by sankaranarayanan subramanian on Oct 04, 2012 09:44 PM
I totally Disagree with Mr.Dinesh ..Yes u shoudl avail home loan if u r eligible which directly helps to reduce tax and as well as curbs your luxury expenditure.Also over a period of time your house gets apprciated to the current economy level.
The trick is whenever you have money even if it is 5k go and repay to bank and ask them to reduce that amount from principal loan and when you get your increment from office go and reset your home loan therby you could increase your EMI and reduce no of EMI.All the best
Re: Home loan repayment
by shrikant kolhe on Oct 05, 2012 10:16 AM
Looking at the current trend in Real estate market, it is impossible for anybody to purchase a property without availing loan. It gives double advantage of saving tax and the appreciation of the property ensures the interest paid on loan is recovered. Also, the property becomes the biggest asset over the years. There are options available in housing loan like MaxGain in SBI home loan which allow you to use your homeloan account like savings account where you can deposit surplus money and gain the advantage of interest earned on this amount to reduce your loan tenure and total interest paid.
Re: Home loan repayment
by sixsigma on Oct 09, 2012 02:57 PM
Depends on the cost of flat or house. If you are getting a house for 20 to 25 lakhs, just grab it bcos anyways, the rents in cities are touching 20 to 25000 in next years. But spending more than 40 lakhs doesnt make sense. Prepayment of loans is the best option, i have seen people who have got a 20 year loan but cleared it in 10 to 12 years.
