Taking loans to fulfill your dreams is definitely a big thing; especially taking home loan in Delhi could be a difficult one. Hopes and expectations are tied into them and you work hard to match it. So if you are looking out to take a home loan now, you should also be prepared for what comes after; paying up the outstanding installment amounts making up for that. This basically cuts off a huge part of your monthly earnings and that could really irk you after a certain period of time. So it is necessary that you prepare yourself and take on certain measures which will help you in planning ahead of this eventuality.
Below are factors which should be kept in mind when you are planning to pay the home loan installments. It could improve or worsen your situation based on how you react to it.
1. YOUR SALARY: The major part of your installment cuts from this source. Your income makes up for the largest part for your daily expenses, savings and what not. Home loan eligibility basically depends on how much salary you get and thereby you get a certain amount of home loan. Based upon the eligibility and the criteria, home loan calculators is used to determine the amount. If you are working in a stabilized job sector there might not be issues since your income will also increase gradually with time. Therefore you can keep your installment rates at a higher side as well so that you can pay it off quickly without much of an interest cut. It would seem cumbersome at first since banks usually take half of the earnings as part of the home loan installment and you would be faced with a choice to keep the earnings versus expenses ratio intact. However if you have a stable industry, with proportionate increase in salary then this would not pose a problem to you in the future.
2. EXPENSES: Managing your expenses is another daunting task. You need to keep your regular spending ratio in check if you need to get out of the installment cycle early. There are always times when the spending ratio increases over time as you would have your own needs and wants. If you have a family then you would need to look out for the impending expenses to be carried out. Therefore you need to manage all of this, so that the monthly installments do not cease.
3. TENURE OF YOUR INSTALLMENT: This is also a vital aspect while paying up your installments. The tenure until which you need to complete the payment of your EMIs, this option is available when you first initiate the process. If you don’t want this to drag on for many years, then you can spend more than half the amount of your salary and make it work. Generally, people opt in for 15-20 years loan tenure so that they can pay it up slowly and without any haste.
4. HOME LOAN INTEREST RATES: Another vital factor to be taken into consideration while taking the installments is the home loan interest rates to be paid every time the loan matures. The rates would not remain the same so you need to be certain since the installments depend upon that as well.
Most of all, planning is essential. If you are hasty, you would make mistakes, you won’t be able to fulfill your dreams. So planning ahead before taking any decision so that you are aware of the ins and outs of it is the wisest course of action.