Some wonderful facts of financial planning
|Rate Increase of Home Loan||.5%||.75%||1.00%||1.50%||2%|
|Increase of Loan Term||2.73 Years||4.72 Years||7.55 Years||27.09 Years||Never End|
|Toatl Loan Term||22.73 Years||24.72 Years||27.55 Years||47.1 Years||Mothly interest is more then EMI|
This situation of uncontrolled loan can be avoided by simply monitoring your loan rate and its effect on your loan outstanding. Generally home loan institutions dont keep you informed regularly, they increase the rate without informing you and when there is reduction in interest, they wait for your letter. If your loan is more than 2 years old, there are possibilities that your rate has increased by nearly 2%. In that case your monthly EMI may not be sufficient to cover the monthly interest on your loan and outstanding loan may start increasing. Check your existing interest rates and take necessary steps to reduce your rate.
You can keep your loans in control by updating your loan details on Planyourworld.org, this will give you customized alerts so that you can protect your home and you dont work for bank only.