|
|
RESOURCES
• Agents in real estate
• The deal in mortgaging
• Hidden Cost in mortgaging –
Plan for your finance
• Mortgaging or Rent – vital decision
• Refinance - The competitive market
• Plan your finance – mortgaging is an
additional burden
• Borrowing in Real Estate
• Mortgaging Jargons
• The Fundamental Needs
RELATED LINKS
|
|
|
Borrowing in Real Estate
Home is a desire and the flexible options have fueled the indomitable interest of human beings to own a real estate as per his choice. Now, once you decide to go for a real estate and that too in finance schemes, you must take a note of your repayment capacity and the mortgaging amount that you can borrow.
You must remember that the principle, which you can borrow, is directly proportional to your monthly repayment capacity. The amount you pay each month towards your loan repayment is called EMI (Equated Monthly Installment). How do you calculate your repayment capacity? Though it varies from bank to bank and is also based on the country but generally the figure is 30% to 45% of your gross monthly income. So, if your gross monthly earning is $1000, you can afford to pay $300 to $450 towards your EMI. Please take a note that if you have any other existing loans then that EMI will also be deducted in calculating your repayment capacity.
Determination of a mortgaging principle
We assume the following for calculation of principle
|
|
|
