Home lone - short term vs long term benefit

Knowledge resource 382 views 1 replies

Hi,

 

I have one basic query with Housing loan about pros and cons of long term or short term.

 

I think long term is better compared to short, because it will have low EMI and no pre-payment penalty.  So whenever it is possible, more amount can be paid as repayment and not worry about the Interest otherwise simply pay the monthly lowest EMI.   Please tell me whether it is the right decision or there is any other disadvange with it. Kindly clarify my query.

 

Thanks

Sakitram

Replies (1)
Dear sakitram, it depends with your annual income, other investment plans, contingent reserves plans, but yes in longterm plan their are benefits as compare to short term. Short-term loan as beneficial is you have a good capital strength and good liquidity in your assets. It is also beneficial in tax planning if done with proper analysis of your annual income. I hope answer is satisfactory to you. Regards


CCI Pro

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