Showing posts with label Housing Loan. Show all posts
Showing posts with label Housing Loan. Show all posts
Sep 2, 2008
Personal Finance
Personal Finance: contact Avdhoot Investment for cheaper personal Loan, Housing Loan, Car Loan, Finance on Car, Mortgate Loan etc. Hurry! visit here for more detail
Aug 8, 2008
Borrow Rs25 lakh home loan, repay Rs1 crore
If the current interest rates stay, you might end up shelling out more than Rs1 crore to pay off a Rs25 lakh home loan. How? Read on.
Six months is a long time, especially if you happened to take a home loan back then.
Banks were charging a floating interest rate of 11% on their home loans. The equated monthly instalment (EMI) on a 20-year loan (or 240 months) of Rs25 lakh would have worked out to Rs25,805 a month.
Around one-month back, banks raised the interest rate on floating rate home loans to 11.5% and have now raised it by another 0.75% to 12.25%.
Last time, hike in interest rates were not accompanied by an increase in EMI. Banks did the smarter thing and increased the tenure of the loan. The remaining tenure of the loan went up from 240 to 269 months.
If banks were to follow the same strategy now and increase the tenure of the loan, instead of increasing the EMI, the remaining tenure of the loan would go up to 394 months. Add to this the six months of EMI you have already paid, and you are looking at a total tenure of 400 months. If you keep paying an EMI of Rs25,805 for a period of 400 months, you would have paid Rs1.03 crore (Rs25,805 x 400 months) by the end of it.
However, the bigger question is will banks allow tenures to shoot up to 400 months? crore
How it will hurt you
Principal Rs 25 lakh
Initial rate 11%
Tenure 240 months
Initial EMI Rs 25,804
Principal repaid Rs 14,707
in first 5 months
Principal left Rs 24.85 lakh
Rate after 5 months 11.5%
Remaining tenure if 269 months
EMI remains same
Increase in tenure 35 months
at the same EMI
Principal repaid in Rs 4,027
the 6th month
Principal repaid in Rs 1,8734
first six months
Principal left Rs 24.81 lakh
Rate after 6 months 12.25%
Remaining tenure if 393.5 months
EMI remains same
Increase in tenure 159 months
Extra money paid to Rs41 lakh
service the loan (Rs 25,804 x 159)
Total EMI to Rs1.01
be paid crore
Avdhoot Investment
Six months is a long time, especially if you happened to take a home loan back then.
Banks were charging a floating interest rate of 11% on their home loans. The equated monthly instalment (EMI) on a 20-year loan (or 240 months) of Rs25 lakh would have worked out to Rs25,805 a month.
Around one-month back, banks raised the interest rate on floating rate home loans to 11.5% and have now raised it by another 0.75% to 12.25%.
Last time, hike in interest rates were not accompanied by an increase in EMI. Banks did the smarter thing and increased the tenure of the loan. The remaining tenure of the loan went up from 240 to 269 months.
If banks were to follow the same strategy now and increase the tenure of the loan, instead of increasing the EMI, the remaining tenure of the loan would go up to 394 months. Add to this the six months of EMI you have already paid, and you are looking at a total tenure of 400 months. If you keep paying an EMI of Rs25,805 for a period of 400 months, you would have paid Rs1.03 crore (Rs25,805 x 400 months) by the end of it.
However, the bigger question is will banks allow tenures to shoot up to 400 months? crore
How it will hurt you
Principal Rs 25 lakh
Initial rate 11%
Tenure 240 months
Initial EMI Rs 25,804
Principal repaid Rs 14,707
in first 5 months
Principal left Rs 24.85 lakh
Rate after 5 months 11.5%
Remaining tenure if 269 months
EMI remains same
Increase in tenure 35 months
at the same EMI
Principal repaid in Rs 4,027
the 6th month
Principal repaid in Rs 1,8734
first six months
Principal left Rs 24.81 lakh
Rate after 6 months 12.25%
Remaining tenure if 393.5 months
EMI remains same
Increase in tenure 159 months
Extra money paid to Rs41 lakh
service the loan (Rs 25,804 x 159)
Total EMI to Rs1.01
be paid crore
Avdhoot Investment
Aug 1, 2008
Home loans get costlier; repayment to rise by over 12%
New Delhi: Home loans just got costlier with the lending institutions on Thursday announcing a hike in their interest rates by an average of 0.75 per cent a move that would increase repayments by a minimum of about Rs 2.5 lakh for a Rs 20-lakh loan.
Consumers would have to fork out over Rs 1,000 more every month as EMI for a loan of Rs 20 lakh, whose repayment is spread over 20 years.
Market leader HDFC today announced a hike of 0.75 per cent in its retail prime lending rate, on which its adjustable home loans are benchmarked, with effect from August 1.
While a few banks already announced rate hikes yesterday, others are expected to soon follow suit.
HDFC said that for new home loan customers, the adjustable rate loans would now be priced at a minimum of 11.75 per cent. Fixed rate remains unchanged at 14 per cent.
On a 11.75 per cent floating rate, the EMI is estimated to work out to around Rs 21,675 per month, up Rs 1,031 from Rs 20,644 at a rate of 11 per cent.
This would result in an overall additional burden of close to Rs 2,50,000 over the 20-year period.
The rates are being revised in the wake of tight monetary measures announced by RBI on Tuesday, when it asked the banks to maintain higher mandatory cash reserves with it and also increased its short-term key lending rates for them. Avdhoot Investment or read more on Housing Loan here
Consumers would have to fork out over Rs 1,000 more every month as EMI for a loan of Rs 20 lakh, whose repayment is spread over 20 years.
Market leader HDFC today announced a hike of 0.75 per cent in its retail prime lending rate, on which its adjustable home loans are benchmarked, with effect from August 1.
While a few banks already announced rate hikes yesterday, others are expected to soon follow suit.
HDFC said that for new home loan customers, the adjustable rate loans would now be priced at a minimum of 11.75 per cent. Fixed rate remains unchanged at 14 per cent.
On a 11.75 per cent floating rate, the EMI is estimated to work out to around Rs 21,675 per month, up Rs 1,031 from Rs 20,644 at a rate of 11 per cent.
This would result in an overall additional burden of close to Rs 2,50,000 over the 20-year period.
The rates are being revised in the wake of tight monetary measures announced by RBI on Tuesday, when it asked the banks to maintain higher mandatory cash reserves with it and also increased its short-term key lending rates for them. Avdhoot Investment or read more on Housing Loan here
Subscribe to:
Posts (Atom)