Need an advice on whether should I continue my home loan EMI. Currently I am paying 30k monthly and around 9 lakhs is the amount left to be repaid to the bank.
Further I have investment in NPS, Term policy,Health insurance ,MF investment SIPS.
My CTC is 14 Lakhs
Thanks and Regards
May I know these details – Home loan commencement year, amount, tenure??
What are the sources from which you would like to repay your home loan? Are these investments (corpus) ear-marked for any of your other financial goals?
Home loan Commencement year: Sep 2017
Source of income from which I would like to pay: Getting the FD amount matured.
1.To Build corpus for kids education .
2.Corpus for retirement
Thanks and Regards
Considering your current profile, home loan tax benefit, current interest rate scenario.. you may continue with your home loan and divert the savings/investible surplus to right investment avenues for your other high priority goals as mentioned in your comment.
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Buying a house is one of the biggest financial decisions. Those who wish to fulfil their aspiration decide to apply for a home loan. But availing one is not that simple. Many are unaware of the formalities which one needs to achieve for approval. Those who apply for housing loans should be aware of multiple factors such as interest rates, credit score, charges, documentation, and more.
Some things you need to know before opting for home loan India are –
1) Credit score: One of the essential factors to consider before applying for the loan is maintaining a decent credit score. It is the most critical requirements for lenders along with income and employment. Make sure your credit score is 750 and above. This way you can earn better interest rates as well. Timely bill and EMI payments could lead to high credit score.
2) Interest rates: Every applicant should check and consider the interest rates of different lenders before applying for a home loan. Precisely why research is imperative. There are two types of interest rates – floating and fixed. Under the latter, the interest rates do not vary. Variable rates are susceptible to economic and market conditions.
3) Tenure: House loan tenures are anyway lengthy, but you could balance them using the EMI calculator. The interest rates and monthly payments depend on the EMIs. Lenders prefer those applicants who opt for shorter tenure. It not only decreases the interest rate burden but also the EMIs.
4) Down payment: Generally, when you apply for home loan India, you need to make 15 to 20 per cent down payment. The rest of the amount gets converted to EMIs. If you have surplus cash available, make a larger down payment. This way you save on the interest amount.
Thank you for sharing your views!