A précised estimate when investing in homes through mortgage or loan

Many people think that owning a home is one of their biggest financial goals in their lives. Home not only provides us with a shelter but also establishes our identity, which is what we plan to leave for the next generation to ensure their future. Although epidemics in recent years have mainly affected most aspects of our lives, most of the respondents’ wealth goals received an impressive “importance” score of 90.7. `-The difference between the importance and readiness of the respondents for any goal-above average at 6.3, which shows that many people still feel that they still have a way to buy a house. It is not cheap. 

Sometimes, the cost of owning a house can be 10-15 times your current family’s annual income, or even more, especially if you plan to buy a property in a big city where real estate rates and segmented verification is very high. Therefore, it is understandable that most people turn to house loans to fund their purchases and repay them with interest over a period of 30 years. In addition, you may need to use your own resources to pay for several other major expenses. Therefore, when planning for important things like buying a house, it is best to keep these costs under control. Here are some tips to help you roughly estimate the true cost of buying a house with the help of a mortgage.

A down payment mortgage can usually fund up to 90% of the property value; this means that the remaining 10% must be paid out of pocket. However, if your mortgage exceeds 7.5 million rupees, your lender can only approve up to 75% of the loan amount, and the remaining 25% must be paid as a down payment. For example, if your property is worth 3 million rupees, your down payment requirement is maybe 10% of that amount or 300,000 rupees. But if your property is worth 1 million rupees, you may have to pay 25%, which is a down payment of 2.5 million rupees. In recent years, it has set a record low in decades. Lenders determine the interest rate applicable to housing loans based on several factors such as age, gender, income, credit score, property value, and loan-to-value ratio (LTV). Of the borrower. Ideas, suppose you are a 30-year-old person with a credit score of over 800, and he plans to buy a house worth 3 million rupees. Your LTV is 90%, so your mortgage amount is 2.7 million rupees. If your lender approves the loan at an interest rate of 6.75% per year. For a 30-year term, your EMI will be 17,512 rupees in 30 years (assuming the interest rate does not change during the loan term), the total interest payable will be 3.604 million rupees, and the total repayment amount will be 63.04 million rupees. If the same person plans to buy a house worth 10 million rupees, his loan amount maybe 7.5 million rupees, with an annual interest rate of 7%. 

For more than 30 years, your EMI may be 49,897 rupees, the total interest is 1.04 crore rupees, and the total repayment amount is 1.8 rupees. Therefore, it is very important to have a high credit score to obtain the best available interest rate and sufficient repayment capacity to be able to repay the loan in full on time without interrupting other key financial goals. It is also helpful if the borrower can use any accidental windfall from time to time to repay the loan (prepay floating-rate housing loans without penalty) to drastically reduce the total interest payable and get rid of debt. 

Other expenses related to housing loans must pay some additional fees to the lender, such as loan processing fees, document fees, legal advice fees, property evaluation fees, etc. 

The loan handling fee is a non-refundable amount paid to the lender, which accounts for a small part of the loan. Some lenders may bundle documents, legal opinions, and evaluation fees in the processing fee, while others may charge them separately. Loan until all the installments are paid in full. The lender charges a contract fee called the MODT fee, which is usually 0.1% to 0.3% of the mortgage loan amount and may vary from state to state. Processing fees, legal advice fees, and MODT fees are generally less than 1% of the loan, and they are often waived, restricted, or discounted. These costs vary based on factors such as the location, price, and size of the property. Together, stamp duty and registration fees account for almost 3% to 6% of the property value. If the property is purchased through a broker, the buyer must pay brokerage and legal fees, which may be 1% to 2% of the total value of the property. 

Therefore, assuming that the registration fee and printing costs are 6% and the brokerage fee is 1% (total 7%), then a property worth 3 million rupees is worth 210,000 rupees and property worth 1 million rupees is 700,000 rupees. For these, homebuyers may also have to pay various other fees to the developer, including utility bills, floor rises, municipal taxes, annual partnership maintenance fees, and clubhouse fees (if applicable), which add up to a considerable amount. Developers can also charge separately for swimming pools, gyms, club memberships, shaded parking lots, and other facilities. In addition, the property under construction involves payment of consumption tax.