Monday, June 13, 2011

How it affects, if your housing loan interest is increased by 1% ?


Effect of 1% hike in your Housing Loan Interest:-



Calculation of Loan Amount Rs. 35,00,000 @ 9% Interest Rate
 



Loan Tenure
EMI
Total Interest
Total Principal

Total Paid
10 Years
44,337
18,20,382
35,00,000
53.20 Lacs
15 Years
35,499
28,89,879
35,00,000
63.89 Lacs
20 Years
31,490
40,57,698
35,00,000
75.57 lacs
25 Years
29,372
53,08,314
35,00,000
88.11 Lacs




Calculation of Loan Amount Rs. 35,00,000 @ 10 % Interest Rate





Loan Tenure
EMI
Total Interest
Total Principal

Total Paid
10 Years
46,253
20,50,330
35,00,000
55.50 Lacs
15 Years
37,611
32,70,012
35,00,000
67.70 Lacs
20 Years
33,776
46,06,181
35,00,000
81.06 Lacs
25 Years
31,805
60,41,357
35,00,000
95.41 Lacs




DIFFERENCE OF 1 % INCREMENT IN HOUSING LOAN



Loan Tenure
EMI  @ 9%
EMI  @ 10%
Total Paid @ 9%
Total Paid @ 10 %
EXCESS PAYMENT
10 Years
44,337
46,253
53.20 Lacs
55.50 Lacs
2.30 Lacs
15 Years
35,499
37,611
63.89 Lacs
67.70 Lacs
3.81 Lacs
20 Years
31,490
33,776
75.57 lacs
81.06 Lacs
5.49 Lacs
25 Years
29,372
31,805
88.11 Lacs
95.41 Lacs
7.30 Lacs



So, some questions arise if interest on your housing loan is increased by 1% :

1.    Advisable to close the housing loan on earliest basis?

2.    Is it worth buying a second house for Tax Rebate Purpose?

3.    Is your house going to appreciate more than the amount paid on interest?

Answers of this question depends upon the need of an individual person.

-Manan Mankad

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