Comments on: Taking a Home Loan-Tips to Save Money

By: Vinay

Vinay — Fri, 23 Dec 2011 02:54:35 +0000

Hi uday yr article was very informative . I need some clarifications I have planned to buy a fully constructed apartment or villa which cost around 35 to 40 lakhs ,my gross salary is 60k per month what is the initial down payment should I invest if I am taking a house loan in Hdfc n I already have a car loan monthly emi is 7000 n how much loan will i get.i want to take a maximum loan from bank can u pls help me out .

By: saranya

saranya — Tue, 19 Jan 2010 06:37:16 +0000

hi uday…. this article is superb and i need to buy a flat within 30lakhs… and i am looking for home loans for remaining 20lakhs amount
please suggest some tips to do my task….

By: unni

unni — Thu, 10 Dec 2009 15:04:35 +0000

Hi Roy what was the outcome, does a visit to the marketing offfice help, you mentioned in your case you were interested in sunnyvale did it work for you

By: Jagdish

Jagdish — Sat, 07 Nov 2009 10:50:18 +0000

Hi Uday,

Thanks for the information and it’s very useful.

Need few clarifications,
Planning to go for composite loan, 25L for plot(excluding down payment – 10L) and 20L for house construction (total investment: 55L)

In this case planning to take 25L loan first, wait for 6 months and do 5L + 5L down payment for next 2 qtrs. Then start the house construction and again have prepayment of 5L 6 months down the line.
Please comment on this. is my decision makes sense? else go for complete funding of 45L and complete the house construction,then start the prepayment?

Kindly educate me on this and let me know the benefits of the case you suggest over the other.

Another question, is to good go for short term loan like 10 or 15 yrs instead of 20 yrs and continue to do the repayment else go for 20 yrs tenure with prepayment?

Thanks in advance.

Regards,
Jagdish

By: Srinivas

Srinivas — Mon, 22 Dec 2008 13:45:42 +0000

Hi,
I am quite confused with this point.
“So if you are buying a apartment for Rs 30 Lakhs , you should shell out around Rs 3 -4 Lakhs. Assume that you had more money in hand say Rs 6 Lakhs. You would obviously go for less loan amount and pay out the rest from your Hand. PLEASE DON’T DO THIS.”

1. It doesnt look logical taking a loan from the bank for higher amount (additional 2~3 lacs here) when u have it.

2. You will end up paying interest for the entire amount. By taking less loan, u may save some interest amount. (@ 10% interest rates, its approx 900 per month or 16200 for those 6 months on 3 lacs that you are asking us to wait)

3. Also, those 3 lacs in ur bank savings or fxd deposit will end up fetching less interest than you pay on home loan. (the banks have to protect their fat margins)

4. The only Benefit I see out of this is u will get interest benefits on tax computation. But, keep in mind, u need to spend 1 re to get 33 paise benefit.

By: uday

uday — Sun, 30 Nov 2008 16:04:33 +0000

thanks pad

By: Pad

Pad — Sun, 30 Nov 2008 08:27:12 +0000

Those are great tips Uday with detailed information. Thanks others as well sharing their valuable inputs.

By: Gladwin

Gladwin — Sun, 12 Oct 2008 16:19:50 +0000

Thanks guys for the excellents inputs on home loan

By: Suneel

Suneel — Wed, 16 Apr 2008 07:14:39 +0000

Is any one aware of Chennai pattinam by Cee Dee Yes builders. Their sqft rate is 2250/- and they will take care of the interest part. We don’t have to pay any thing till the project is complete, in 2010 April. It looks like a good arrangement.
They are reducing the price to 2075 per sqft if the money is disbursed immediately.

Can some one suggest which option is better? I would go for the second option because in the second option, you end up paying 20% as interest by 2010 April, which works out to Rs 400 per sq ft.

By: uday

uday — Wed, 19 Mar 2008 01:18:41 +0000

Thanks Suresh for adding additional points. Hope it benefits our readers