Wednesday, November 12, 2008
Everybody wants to own a home,once you have decided to take a home the very next thing that comes to your mind is to take a loan,and when it comes to loan ,many questions arises like from where to take a loan? how to take a loan? how to choose between fixed rate and floating rate?
This is the place ,where we need to think twice while coming to a proper decision .because there are lot of option's in the market and we need to choose among the best.
Home loan is no long a far away,you don't have to run away to get it approved for yourself ,it has been simplyfied a lot. There will be a lot of plans,advertisement,easy installment which will be tempting you take a loan now and then.and the banking and finance industry are also there to help you out according to your desire.
The criteria and eligibility for taking loan has also been rationalized and any one can plan to take a home loan by fulfilling the bottom lines.
But then the question comes in mind that whether you should take a home loan or not because it is a long term assessment and you should not fall in debt.
I will advice you to keep it below 25% of your present net income,because you should have some reserve for any unforeseen situation,it may be healthcare,financial, or any other expenses.
Don't take any decision based upon estimation on future project.as the home loan is a long term liability in this period your income may keep on rising,but so do your liabilities and expenses and may be the vice-verse. what will you do then?always keep all this thing in mind.
You should keep a balance between liabilities,expenses and income,and also remain stress free of the burden of EMI.