How to reduce home loan tenure by increasing EMI?

 

Home loans are financial tools that enable people to realise their aspirations of becoming homeowners. While these loans give you the money you need, managing them can be difficult because of their lengthy terms and the significant interest they accrue. However, there are practical methods that borrowers can use to shorten the loan term and save money.

The Importance of Reducing Loan Tenure: 

Reduced loan terms are essential for several reasons. First, it enables you to get out of debt faster. Second, you can save money by taking out a loan for a shorter period and paying less interest over time. Borrowers can achieve full homeownership more quickly and feel financial relief by implementing strategies to shorten the loan term.

Increasing EMI Payments: 

One of the most effective ways to reduce loan tenure is by increasing your Equated Monthly Instalment (EMI) payments. EMI is the fixed amount you repay every month to the lender. You can expedite the repayment process and minimise the overall interest burden by paying a higher EMI.

Suppose you have a home loan of Rs. 50,00,000 with an interest rate of 8% for a 20-year period. The accurate monthly instalment, known as the Equated Monthly Installment (EMI), for this loan, is approximately Rs. 41,753.

Now, let’s consider that you decide to pay an additional 1% of the loan amount every month, which amounts to Rs. 418 per month. By making this extra payment, you have the potential to reduce the loan tenure by five months, bringing it down from 240 months to 235 months.

Use this tool to claculate –https://khatabook.com/calculator/loan-tenure/

Please note that these calculations assume that the additional payment is made consistently every month, and they are approximate values. The precise impact of extra payments on loan tenure may depend on specific loan terms and conditions.

More Ways to Reduce Loan Tenure: 

Borrowers also have more alternatives to shorten the loan term apart from increasing their EMI payments. 

Refinancing the loan is one of these techniques. Refinancing allows borrowers to benefit from cheaper interest rates given by competing lenders, effectively lowering the total interest paid throughout the loan.

Prepayment of the debt is another approach to think about. You can pay the principal in one lump sum if you have extra money, which would lower the overall debt. As a result, the tenure and interest payment reduces.

A balance transfer is a third option. When borrowers move the balance of their outstanding loans to a different lender with better terms and conditions, there can be more benevolent payback conditions, lower processing costs, or lower interest rates. Borrowers may be able to shorten the tenure and pay less interest overall by choosing to transfer their debt.

Tips for Choosing the Right Home Loan and Lender: 

It is crucial to assess several aspects to ensure the best loan and lender when considering a home loan. You can use the following to make an informed choice:

• Compare different interest rates: Compare and analyse the interest rates provided by various lenders to find the best offer.

• Understand your alternatives for loan terms: Examine whether it would be feasible to choose a shorter loan term from the start to reduce your interest payments.

• Explore prepayment fees: Find out the prepayment charges imposed by lenders. To have the freedom to shorten the loan term when you have extra money, choose a loan with lower or no prepayment penalties.

• Consult a professional: Consult with mortgage brokers or financial consultants who can offer professional advice and assist you in navigating the complexity of home loans.

Shortening the loan term can be a wise financial move that might result in more savings over time. Borrowers can reduce the loan term and pay off their debts sooner by raising their EMI payments, looking into refinancing possibilities, considering prepayment, or choosing a balance transfer.

Before selecting the ideal house loan, it is necessary to review the terms and conditions of several lenders. Borrowers can more easily attain their goals of becoming homeowners by putting these tactics into practice and making well-informed judgements.

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Originally published at http://realestateandepc.wordpress.com on June 22, 2023.

What is Builder Floor? A Low-Rise Alternative to Apartments

 

Builder Floors are residential projects that offer more privacy and independence than a High-rise Apartment but less maintenance and cost than an independent house.

Builder Floors are residential units in a low-rise independent building which is generally two to four floors high. Each floor has only one apartment unit, and such projects are developed by the builder on his own or in collaboration with the landowner under a joint development agreement.

What are the features of Builder Floors?

Builder Floors have distinctive features that make them different from other residential properties. Some of these features are:

• They are not part of a large housing society or complex and hence, do not have to follow the rules and regulations of a cooperative housing society (CHS) or a similar legal body.
• They offer more space and freedom to the owner, as each floor is a single residential unit with no common walls or shared amenities with other houses.
• They usually come with proportional ownership of the plot, which means the owner has more control over the design and construction of the property, as well as the possibility of future expansion or renovation.
• They do not have amenities like gyms, swimming pools, security assistance, etc., like in High-rise Apartments. However, this also means that the owner does not have to pay any monthly maintenance charges or shared area expenses to a society or association.

What are the pros and cons of Builder Floors?

Some of the advantages of buying Builder Floors are:

• They give more privacy and exclusivity to the owner, as there are no other residents on the same floor or adjacent walls.
• They are more affordable than an independent house or a villa, as it requires less land and construction cost.
• They are more suitable for people who prefer living in low-rise buildings that offer convenience and accessibility, especially for senior citizens and children.
• They can be customised according to the owner’s preferences and needs, as there is more flexibility in choosing the layout, design, fittings, etc.

Some of the disadvantages of buying Builder Floors are:

• They may not have adequate parking space, water supply, sewage system, power backup, etc.
• Less reputed builders usually construct Builder Floors projects.
• The property before and after construction could differ considerably.
• They may not have well-equipped security and safety measures, as there is no dedicated staff or guard.

How are Builder Floors different from an apartment?

An apartment is a residential unit in a high-rise building part of a large housing society or complex. An apartment has common walls and shared amenities with other apartments in the same building or society. An apartment has to follow the rules and regulations of a Cooperative Housing Society or a similar legal body that manages the affairs of the society or complex. An apartment does not have proportional ownership of the plot but only an undivided share in it.

Builder Floors is a residential unit in a low-rise independent building not a part of any housing society or complex. Builder Floors have no common walls or shared amenities with other apartments in the same building. Builder Floors do not have to follow any rules or regulations of a Cooperative Housing Society or a similar legal body. Builder Floors have proportional ownership of the plot, which gives the owner more control and flexibility.

Visit — https://shapoorjirealestate.com/residential/northern-lights

Shapoorji Pallonji Real Estate a leading real estate developer in India, has a legacy of over 155 years. Shapoorji Pallonji has several residential projects in Mumbai, Thane, Pune, Kolkata, & Bangalore cities in India, including High-rise Apartments, villas, townships, etc.

Originally published at http://realestateandepc.wordpress.com on June 15, 2023.

Builder Floor

Builder Floor Apartments

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What are Teaser Loans? A Closer Look at Introductory Rate Loans

 

In the realm of lending, Teaser Loans have gained popularity for their enticing initial terms. Also known as Introductory Rate Loans or Hybrid Loans, these financial products offer borrowers a temporary period with lower interest rates or payment amounts. However, it is essential to grasp the intricacies of Teaser Loans to make informed decisions and avoid potential pitfalls.

In this article, we delve into the details of Teaser Loans, their mechanics, and the considerations borrowers should keep in mind.

What are Teaser Loans?

A Teaser Loan is a type of loan that presents borrowers with a lower interest rate or payment amount during an initial period. The name “teaser” aptly describes the purpose of these loans, as they are designed to attract borrowers with appealing terms. Often associated with adjustable-rate mortgages (ARMs), credit cards and other loan products, Teaser Loans usually provide a fixed interest rate for a predetermined period, typically ranging from six months to several years.

Understanding the Mechanics:

During the introductory period of a Teaser Loan, borrowers enjoy the advantage of a lower interest rate or payment amount. For example, an ARM might offer a fixed rate of 6% for the first three years of a 30-year mortgage. This initial rate is significantly lower than the fully indexed rate, which is the rate the loan would typically carry throughout its term.

However, it’s important to note that Teaser Loans are not static. Once the introductory period concludes, the interest rate adjusts based on predetermined factors. In many cases, the rate transitions to a higher fixed rate or is determined by a variable rate that fluctuates in response to market conditions.

Key Considerations:

Short-Term vs. Long-Term Benefits

Borrowers need to carefully evaluate the short-term benefits of Teaser Loans against their long-term financial goals. While the lower initial rate may offer immediate cost savings, it is crucial to consider how the rate will adjust and the potential impact on monthly payments.

Financial Stability and Future Rate Increases

Teaser Loans require borrowers to assess their financial stability and capacity to handle higher payments once the introductory period concludes. Anticipating potential rate increases is essential, as borrowers must be prepared to accommodate higher monthly instalments.

Market Conditions

Teaser Loans linked to variable rates are subject to market fluctuations. Borrowers should be aware of the index and margin used to calculate the rate after the introductory period. Researching historical trends and consulting financial experts can aid in assessing the potential impact of market conditions on future payments.

Exit Strategies

It is essential to have exit strategies in place to mitigate the risks associated with Teaser Loans. Borrowers should consider options such as refinancing, selling the property, or adjusting their financial plans if the loan terms become unfavourable.

In conclusion, Teaser Loans, or Introductory Rate Loans, provide borrowers with an initial period of lower interest rates or payment amounts. They can be a viable option for individuals looking to benefit from short-term cost savings.

However, it is crucial to approach Teaser Loans with caution and consider the long-term implications. Understanding the mechanics of Teaser Loans, evaluating personal financial stability, anticipating future rate adjustments, and being mindful of market conditions is key to making informed decisions.

As with any financial decision, it is advisable to consult with professionals, such as mortgage advisors or financial planners, to assess the suitability of Teaser Loans based on individual circumstances. By carefully considering the terms and potential risks, borrowers can navigate Teaser Loans effectively and make informed choices that align with their long-term financial objectives.

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Originally published at http://realestateandepc.wordpress.com on June 15, 2023.

How to check MahaRERA registered projects details online without login

 What is MahaRERA?

MahaRERA stands for Maharashtra Real Estate Regulatory Authority, the state-level body that implements the Real Estate (Regulation and Development) Act, 2016 (RERA) in Maharashtra. The RERA Act aims to regulate the real estate sector in India by ensuring transparency, accountability, efficiency, and consumer protection. MahaRERA was established on 1st May 2017 and has its headquarters in Mumbai.

What are the functions of MahaRERA?

• To register real estate projects and agents in Maharashtra and maintain a database of them on its website.
• To monitor the progress and quality of registered projects and ensure compliance with the RERA Act and rules.
• To adjudicate complaints and disputes between promoters, agents, and allottees of registered projects and impose penalties or sanctions for violations.
• To promote awareness and education among stakeholders and the public about the RERA Act and its rules.
• To advise the state government on matters related to the development and regulation of the real estate sector.

How can one check the MahaRERA status of a project?

Step 1 – Visit the official website of MahaRERA at https://maharera.mahaonline.gov.in/

Step 2 – On the MahaRera website homepage, click on the ‘Registration’ tab and choose Registered project

Step 3 – You can search for a project by entering the name, registration number, location, or other criteria in the search box. Alternatively, you can browse the list of projects by clicking on ‘View All’.

Step 4 – Once you find the project, click on its name or registration number to view its details. You can see information such as project status, completion date, amenities, layout plan, sanctioned plan, approvals, financials, litigation history, agent details, etc.

Step 5 – You can also View, download or print the project certificate by clicking on ‘Download Certificate’ or ‘Print Certificate’

What are the benefits of checking MahaRERA’s status before purchase?

By checking MahaRERA’s status, buyers can verify the authenticity and credibility of a project before investing in it. They can also compare different projects or agents based on their features, prices, ratings, reviews, etc. Moreover, they can file complaints or grievances against any project that violates the RERA Act or rules through the MahaRERA website.

MahaRERA is a landmark initiative that has brought a positive change in the real estate sector of Maharashtra. It has increased transparency, accountability, efficiency, and consumer protection. It has also boosted investor confidence and encouraged real estate development in the state.

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Joyville Homes, a subsidiary of Shapoorji Pallonji, offers five premium residential projects in Mumbai and Pune, all of which are MahaRERA registered. To know more about these properties and explore offers and pricing, visit – https://www.joyvillehomes.com/

Originally published at https://realestateandepc.wordpress.com on June 8, 2023.