Hi All,
I need your help in choosing the best option for my Home loan needs.
Background Information
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I current own a piece of land in Chennai ( Registered jointly under my name and my wife name ) and I am planning to build a home.The construction will be started some time in 2013.I currently estimate the construction cost to be around 30 lakhs.
Additional Facts
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1.My Wife is a home maker.
2.I am in the 20% Tax Slab and my wife is in the 10% Tax slab.
I currently have 2 options.
1.I can foreclose some FDs for the entire cost of the house and construct the home without any home loan.The FDs are currently earning less than 10% interest rate.
2.I can take a joint home loan to avail the 3 lakhs interest deduction ( For me and my wife ) given by the IT Department.I have choosen SBI Maxgain Homeloan for this purpose.I am NOT planning to use the Principal deduction under 80 C as my EPF and PPF contributions will cover it.
Please advise on the best option in my scenario.