Should you foreclose your home loan? If yes, when? #MBTV #HomeLoans
Home loans taken before 2008 have a lower rate of interest than today, so it is advisable not to foreclose those loans. After a major portion of the loan has already been paid, it’s better to keep paying at a lower interest rate. However, in case of reducing balance loans with floating interest rate, it is advisable foreclose the loans at the earliest. Deciding based on the size of the loan: In case of high-interest outgo for large loans, it is better to pay towards principal from savings as this will help reduce the interest amounts. Repay the loans faster if: Property’s price appreciation rate is lower than the interest rate Total annual EMIs are higher than tax rebates that can be availed If the loan is for a lower amount, say INR 20 lakh or INR 40 lakh, then it is advisable to continue the loan for a longer period. For more information Planning to Close Your Home Loan Account? Here is All You Need to Do https://www.magicbricks.com/blog/checklist-for-home-loan-closure/114602.html?utm_source=youtube&utm_medium=post&utm_campaign=youtube-post-passive_content_social&utm_term=link1_Should_you_foreclose_your_home_loan_If_yes,_when_MBTV_HomeLoans&utm_content=
Home loans taken before 2008 have a lower rate of interest than today, so it is advisable not to foreclose those loans. After a major portion of the loan has already been paid, it’s better to keep paying at a lower interest rate. However, in case of reducing balance loans with floating interest rate, it is advisable foreclose the loans at the earliest. Deciding based on the size of the loan: In case of high-interest outgo for large loans, it is better to pay towards principal from savings as this will help reduce the interest amounts. Repay the loans faster if: Property’s price appreciation rate is lower than the interest rate Total annual EMIs are higher than tax rebates that can be availed If the loan is for a lower amount, say INR 20 lakh or INR 40 lakh, then it is advisable to continue the loan for a longer period. For more information Planning to Close Your Home Loan Account? Here is All You Need to Do https://www.magicbricks.com/blog/checklist-for-home-loan-closure/114602.html?utm_source=youtube&utm_medium=post&utm_campaign=youtube-post-passive_content_social&utm_term=link1_Should_you_foreclose_your_home_loan_If_yes,_when_MBTV_HomeLoans&utm_content=