Buying a house on your own name is not less than any great achievement. The size of the house does not matter! But the effort taken in buying that house, decorating each and every inch of it is all that you have sweat for! When the possibility is to buy a house is as fit, you will definitely go for it! Loans these days have made it quite possible for every individual to buy the home they have always dreamed of! A home loan gives you an opportunity to let your budget a little stretched and buy something today what you had thought of buying 5-7 years later.
As any loan, the home loan will also require the good credit score with a clean credit report. A good score is a key towards better loan interest rates. Better the credit score, less is the interest rate you will have to pay towards the loan. Lesser the interest you have to pay indirectly lead you to save more!
Let’s come on the topic we need to discuss here : Which is how should you plan for the home loan’s monthly installments.
First of all the loan given to you will definitely be the one which you can afford along with your daily expenses. Make sure that the loan installment for your home loan is always kept aside before using anything form your every month’s salary/profit. There are various ways how you can save more so as to have a lesser burden on your head. The Home Loan Interest Rate should be made sure to have the lowest you can get seeing all the factors.
There is saying “Serve only that much which you can eat” and “ Fill your mouth on that much what you can chew” , both the things just directs towards one thing: Never over burden yourself. It is applicable in case of finances also. Take a loan of the amount of which you can pat the EMI on easy bases and not living in tension always! If suppose, the EMI for your home is 20000 per month, make sure those 20000 are saved in the previous month itself in order that if any mishaps or urgent financial requirement arises, you are not in the condition that you do not have any money. Also, If you have little savings, invest it in the places where you can have constant returns and the risk factor is low!
Keep on adding the small amount in that saved money, so that in last few years of your home loan, you really do not have to shed a single rupee. Making default in your home loan payment will not take you anywhere but shelter less. This will also affect a lot in your credit report and intern affect your credit score massively.
Mia and Shahid, were a new young age couple. They were dating each other for 7 years and they finally thought of hitching! They both were with a nice decent salary and good position in their receptive office. They thought of keeping the marriage as least crowded as possible because they wanted to marry with their own money and not their parents. Rather they thought of buying a house putting major of their savings together and then applying for a Home Loan. Mia and Shahid had the credit score of 790 and 785 respectively, so getting a loan was no big deal for them! The checked the bank which offered them minimum Home Loan Interest Rate which would cost them pretty okay as the monthly installment.
The couple was smart enough, that they did not invest all their money in the house or marriage. A good amount was kept as the combination of investments of Fixed Deposits, Mutual Funds, Shares and Funds. After 2 happy married years, Mia’s father was sick and hospitalized. They had to use major of their savings in that. But because they had planned the whole Home Loan installments right from starting, it never came across tough for them! If they never planned the finances, and had thought of making the payments of the installments for the monthly salary which they get, it must have been a terror situation for them now.
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