Ideal Of Home Loan Tenure
Buying a home is undoubtedly one of the most important things for individuals. And the process generally goes through a slew of elements, right from choosing the right location to finding an affordable financing option. Though every element is important to ensure a better and more affordable investment in real estate, choosing a financing option is somehow more challenging and critical.
There are so many elements before selecting a particular home loan, but you need to be more careful while fixing home loan tenure. A small ignorance can end up putting an additional burden on your monthly budget.
There is no loss if you go for either short or long tenure for your home loan—what gets affected after your selection is the monthly budget that you have to spend on other heads.
Investment in real estate in India is certainly an important step, but you should go for it very carefully after checking out every aspect as per your own financial status.
Here in this write-up, there are three important factors that you should check out before you find out a home loan and fix the tenure for the same.
Let’s start with your age—it’s an important factor that makes a difference in deciding tenure for your home loan. You will have complete freedom in fixing the loan tenure if you are aged under 30. In such circumstances, you should go for a longer tenure ranging from 25-30 years.
And if you are in your 50s, then you would not be allowed to go for a longer tenure. It is safe not to get involved in any sort of liability after retirement. A real estate property in India should be used as an important vehicle for the post-retirement life—avoid taking additional burden at this stage.
Secondly, it comes to your monthly income. Your gross monthly income is the second critical thing that plays a good role in determining the loan tenure. A longer tenure ends up drawing affordable EMI. But if you have a substantial gross salary and you can easily bear a larger amount as an EMI every month, then you may choose a shorter tenure for your home loan.
Lastly, it does also depend on your purpose that how do you want to pay your home loan. If your aim is to avoid paying the extra rate of interest, then you must go for the shorter tenure as it ends up lessening the rate of interest over the period.
So, it is never worrying if you choose home loan tenure with either longer or shorter tenure. Both the options can have benefits for you; provided that you choose a particular option perfectly based on your financial status. Choose a longer tenure only with the repayment option with the least penalty.