ear Manishji,
Hi, I searched several websites to get the answer for my query but the same were confusing.
My details is as under:
Home Loan Amount : 2375000
Original Tenor : 240 months
Paid Tenor : 146 months
Pending Tenor : 94 months
EMI Amount : 30000/-
I am in the highest 30% tax bracket. Currently am saving 1 lac in 80 C & 1.5 lac deduction under Sec 24 (b) by having this home loan.
I have an extra fund of 2 lac available which I am thinking as to whether to pay back and reduce the loan tenor
OR
Invest this money in FD / you can suggest some investment option for a longer period.
Ideally I believed that if I am investing at FD (the net return would be 30% lesser of 9.25% rate of interest i.e. effective interest is around 7%) and my home loan rate is 10.4%….so its always advisable to payback the loan as its on a higher interest…………but some of the websites suggested that its not a better idea to payback the loan…..ideally the money should be invested as the overall returns will be higher……..they are considering the difference of present value of money and future value of money.
I am really confused.
Would request you to kindly help me out.
Thanks and Regards,
Amit