RBI has increased the repo rate again
Home Loan EMI's have increased by 20%+
5 ways how you can KICK OUT Home Loan within 8 Years (instead of 20): π§΅π
Home Loan EMI's have increased by 20%+
5 ways how you can KICK OUT Home Loan within 8 Years (instead of 20): π§΅π
1. Inflate EMIs with Salary
Your salary increases every year, right? Then why shouldn't your EMIs?
Say, if your salary increases by 10% p.a., and you do the same with your EMI
The tenure reduces to <10 Years (FROM 20 Years)
Step-up EMIs are as powerful as step-up SIPs
Your salary increases every year, right? Then why shouldn't your EMIs?
Say, if your salary increases by 10% p.a., and you do the same with your EMI
The tenure reduces to <10 Years (FROM 20 Years)
Step-up EMIs are as powerful as step-up SIPs
2. Dedicating your bonus to Loan repayments
Say, if your EMI is 1/2 of your salary
and you get 10% bonus every year on your yearly salary
and you dedicate all of that towards your loan
The tenure reduces to 12 Years (FROM 20 Years)
Say, if your EMI is 1/2 of your salary
and you get 10% bonus every year on your yearly salary
and you dedicate all of that towards your loan
The tenure reduces to 12 Years (FROM 20 Years)
3. Combo of Option 1 and Option 2 - MOST POWERFUL
Your salary increases by 10%, and your variable payout is 10%
Now you inflate your EMIs as dedicate 100% of your bonus towards Home Loan repayment
The tenure reduces to ~8 Years (FROM 20 Years)
Your salary increases by 10%, and your variable payout is 10%
Now you inflate your EMIs as dedicate 100% of your bonus towards Home Loan repayment
The tenure reduces to ~8 Years (FROM 20 Years)
4. Paying just 1 extra EMI every year
This can reduce your tenure to <17 years (from 20 years)
This can reduce your tenure to <17 years (from 20 years)
5. Reconsider contributing to fixed income instruments
Home Loan interest rates are 9%+ now with limited Section 24 Deduction
For an individual, having >25 Lakhs of loan, there's no incremental tax benefit on interest
You shed out 8%, but get 6-7% (insurance policies, FDs etc)
Home Loan interest rates are 9%+ now with limited Section 24 Deduction
For an individual, having >25 Lakhs of loan, there's no incremental tax benefit on interest
You shed out 8%, but get 6-7% (insurance policies, FDs etc)
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[2] A lot of time commitment
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If you liked this summary, kindly retweet the first tweetπ
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Preferences may change if we discuss past performance of equity. That note is for some other day.
Disclaimer: Shared for educational purpose. Not investment advice
I know there might be incremental benefits of investing in alternate instruments. This note is for those who place a higher value to reducing outstanding loan amount.
I know there might be incremental benefits of investing in alternate instruments. This note is for those who place a higher value to reducing outstanding loan amount.
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