Home Loan Truths

Home loan

Home loan strikes a big cord with people: with small monthly investments you create a big asset and get good tax savings. Is that the complete truth? If you take a loan of Rs 50 Lakhs at current 8.3% interest rate for 15 years for a 70L house, you will pay an EMI of Rs 48,652 for 15 years, a total interest of Rs 37.57L and thus end up paying back Rs 87.57L to home loan company for 50L borrowed. Your house costs you 1.07 Crores practically! On this you save a tax of maximum 11.27L over 15 years if in 30% tax bracket, a mathematical average of 75,000/- per year or Rs 6,261/- per month. So, to save a tax of 11.27L, you pay back 26.3L more! Learning – never take home loan only to save tax. Read more at https://humfauji.in/?s=home+loan