POSTED BY September 23, 2013 12:48 pm COMMENTS (2)ON
I am in the verge of signing a home loan aggreement with SBI for 27 lakhs @ 10.05%p.a. under SBI Maxi-gain. With the current Interest rate scenario would it be benefitial to go for a 15 year tenure or a 20 year tenure.
At the current ROI my EMI would be 29,097 for 180 months and would increase to 29,512 if the ROI goes up to 10.3% p.a. But if I choose for 240 months, then I get an EMI of 26,595 @ 10.3%p.a. considering RBI would increase the base rates from here on.
My question is if I can invest the difference ~ Rs.3000 in an RD and get around 37000 and repay the principal. I am totally confused which way to go and I am signing the deal on 25th, any help/calrity extended would be very helpful.
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2 replies on this article “Longer or Shorter Home Loan Tenure ?”
Dear Vikram, to keep liquidity with you, please opt for a 20Y term. Please starrt parking amount into Max Gain account equal to short fall in the 15Y EMI. This ‘ll save you interest outgo.
RD may fetch interest Rate less than House Loan Interest Rate. If you keep the money as OD extra balance, it will fetch House Loan Interest Rate and also liquidity.