RE:Rising EMI
by Nand Gupta on May 05, 2007 04:50 PM Permalink
It seems you haven't come out of the world cup tragedy. Come'on man talk of something else rather than cricket and cricketers.
RE:Rising EMI
by babu rengaraj on May 02, 2007 12:45 PM Permalink
very well said , bcci is paying heavy amount to the players and the local government without any hesitation allots free land to the players real stupidity
RE:RE:Vote BJP
by Yadagiri Madhav on May 02, 2007 07:47 AM Permalink
Better to pre-close all HOME LOANS by the borrowers as early as possible. so that RBI,Banks,Government will have a GOOD LESSON. Then were come's the inflation worry? were come's the dollar vs rupee strongness? all this becz of government LURING HOME LOAN BORROWERS by increasing huge rate interests? Yes home loan borrowers opted for Floating rates of interests becz at that time other countries mortage loans were quite attractive and still they are they. can chk US,EUROPE mortagage loans. Here our culprit politicians habituated by luring COMMON MAN. This is a DAY-LIGHT ROBBERY FROM A COMMON MAN BY V-VIP'S OF THIS COUNTRY.
RE:Vote BJP
by Vikas Choudhary on May 02, 2007 09:18 AM Permalink
Bhai common man does not understand these techanical juggalaries like inflation rate,GDP etc,he realised when commodoties he wants to purchase get out of his reach.gOVT.DECLARES EVERY DAY INFLATION RATE HAS COME DOWN TO ...But tehy tried to see whether its impacting the prices of goods or not.No prices are not in control.Surprisingly 2 specialists of finance our P.M. and F.M. rae there but thing are getting out of control and worst day by day.On other hand laloo prasad seems to be more efficient in running railways. God hi mallik hein
The government is bad. It is not protecting common man. The rate of interest have increased. I am starving.... and many more. Buddy I just want to tell u all that this is an risk taken by u all. If you all were so concerned with rising emi you could have gone in for fixed Interest rates. But the famous greed of Indian Common man took over ' what if the interest rates go down? how much i will save?' and then because of that u sign on the dotted line. With every oppournity there is a risk. So everyone is paying for the risk. where is the government to blame? They have made rupee stronger in comparision to $. so they have done there job. dont crib now. It only the reasult of your own doing. Learn to accept ur own doings. It will lead to a happy life.
Interest rates keep changing based on the RBI Policy. Now during these times of high inflation interest rates are bound to increase but it would not continue for ever. We would have better times going forward....
We have to think all these before taking loan. It%u2019s always better to take loan such that the EMI should be max of 35% of our monthly net income. So even if EMI increases definitely it will not more then 5-6% of your monthly net income. So adjusting that may not be much difficult.
Example: Say monthly net income of Mr. X is Rs 66000. 35% of 66000 is Rs 23100, so his EMI at the max should be 23100. For this emi at the fixed rate of interest 7.5% (two year ago) he can get 25lakh loan amount for 15 years tenure After 3 years if the rate of interest increase to 11%, then the EMI will be Rs ~284100. During these 3 years there may be increase in salary also, so it will be not a big problem to pay the emi.
Bottom line: Need to make lot of analysis and with care we have to take home loan.
RE:Before taking home loan
by on May 01, 2007 03:49 PM Permalink
Sorry, iam confused. You refer to fixed rate of interest. Then why would this be increasing?
RE:Before taking home loan
by Dhoom on May 01, 2007 04:11 PM Permalink
FIxed mean...it is not fixed through out the tenure, it will be fixed only for 3 years. After 3 years it will change according to the market, then that will be fixed for next 3 years. Where as in Floating it will change every once in 3 months depending on market.
RE:Before taking home loan
by Rakish Poulose on May 02, 2007 12:22 AM Permalink
there are two types of fixed loans - regular fixed and full fixed - full fixed is fixed for the entire tenure of the loan, banks don't normally give this, only during special offer to corporates - you are allowed to strike off the 3 year interest reset clause!! Luckily I could do that.
All of you have various ways to make sure that you tame this rising interest rate. Like some of the readers I had taken the HSBC Smart Home loan policy that works exactly like the SCB Smart Loan. Before this I was on a standard home loan polity and the various thing I did to take into account the EMI was the following. 1. The bank advised to increase the tennure and hence reducing the EMI to where it was earlier - This is a dumb move and should never go for this. 2. Reduce all your outing expenses like eating outside / travelling / vacation. Make sure that all house members are aware elese they would think that something fishy is going on and you are not letting the money go. If all the members are aware of this it makes your life easier. 3. Avoid making late payemnts on your bills as that would be excess money paid as interest like credit card / electricity 4. Put your credit card in a safe place and use only cash, that way you know what you are spending all the time. 5. Cut on the electricity bill by shutting off all appliances that uses electricity than the bare necessity. 6. Try and save money on petrol and try car pooling or using public transport. Public transport can be a pain yet in the end you will be a winner 7. Always eat healthy home cooked food, this will maintain your mental stamina and will keep you healthy as well. 8. Quit investing in any funds that are directed by the markets. 9. Do not switch any Mortgage plans as such. Every thing runs in a cycle and what goes up will come down says Newton. 10. Get rid of stuff in the house that you don't need, you will be surprised how much junk you have collected and the money that comes out of it helps run the show for a few days. 12. Give more time to the family and always keep them telling how you are progressing - be a team leader. Sometime your family memebers may hear your stroy and do all that they can in their power to help you. Especially your kids who with your experiences will learn to be cautious with your money.
I am in the same boat as the other million of us who are suffering from this rise in interest rates. So be brave. Failures do happen but its the courage that keeps you standing tall. All the best
RE:Rising Interest Rates
by Kartik Patel on May 02, 2007 07:24 AM Permalink
Nicely written article. Though am not in the same boat as i live almost zero debt life, a similar situation came into my face 8 years ago and i started cutting down the expenses and at the same time paying off the high cost debt at the earliest. if not used with prudence credit card proves a very costly tool.
RE:Rising Interest Rates
by Sachin Rastogi on May 02, 2007 12:39 PM Permalink
Instead of cutting down all our necessary expenses , why can't we sell our home and stay in rented home?
Human needs are unsatiable. Patience loses and people start spending more than income. Income is steady and has limits on growth. Only possible solution is earn exponentially which is possible only through business. As a precaution, you can do job and your partner can do business.
They offerred 7 to 7.25% for diwali and dusserah offers. It was a trap. I was a fool to get trapped. Unnecessary I took a site and constructed a house. Now if i sell, i will loose registration charges, commission, etc. Now I am almost starving and do the same for next 15 years. EMI is increased.
RE:It is a trap and exploitation
by Navin W on May 01, 2007 01:15 PM Permalink
Hi, i understand you, from which bank u took the loan? I suggest you contact Lic for home loan, atleast they don't cheat. If u want i can give u one no, from which u can talk n take her suggestion. U can transfer the loan to LIC.
RE:It is a trap and exploitation
by Rakish Poulose on May 02, 2007 12:24 AM Permalink
now that you have realised that you were a fool, you will do better in life.
RE:It is a trap and exploitation
by annu santosh chandra on May 01, 2007 12:25 PM Permalink
their are the banks allows u to pay only interest and not the principal part, such as idbi bank's flexi option, where u can pay only interest and pay principal later period.
RE:Rent or Buy?
by Rakish Poulose on May 02, 2007 12:26 AM Permalink
rent is an expenditure, whereas emi is only partly expenditure - so don't compare the two. whether you buy a house or rent a house depends on what you need, of course on what you can afford as well!
see the property rate in changigarh periphery nosedived because of intervention of punjab govt, only govt can give people reasonanle prizes home,, no m n c or builder can give good home reasonable prizes,, all people come forward and form a joint action committee for social housing and corporative societies,,people should have option to live in reasonable prizez home,, it is the responsibility to provide to low income group resonable prizes
