By Chaitali Dutta
If I’ve to do half fee of my residence mortgage, ought to I do it within the first week of the month to cut back the easy curiosity payout?
— Akash Thakur
Most of the house loans are on a day by day lowering steadiness, so it will not matter which date you selected for half fee. The earliest the higher. However, if your own home mortgage is on a month-to-month lowering steadiness, then higher to pay it earlier than the seventh of the month.
Last yr, I had availed a top-up mortgage. Now, I’ve obtained some quantity from the proceeds of an funding. Should I take advantage of it to prepay part of the mortgage?
— PR Sagar
If the quantity you obtained is surplus funds that you simply really feel that if invested, will fetch a decrease fee of return than the curiosity charged on your own home mortgage, then go forward and scale back your mortgage legal responsibility.
Is there any age restrict for a mother or father to get an training mortgage? I’ll retire subsequent yr, and my son wants funds to pursue an MBA in Ireland. Can I get a mortgage which I’ll repay from rental earnings I’ll earn after retirement?
— Pradeep Singh
An training mortgage compensation is the duty of the coed and never the co-applicant, the mother or father. As an incomes mother or father, if you need to pay the easy curiosity accrues on the training mortgage, go forward. However, when you retire, let your son handle the curiosity and principal compensation from his personal earnings.
How do I get a mortgage towards my deposits and different securities which I don’t need to break?
— Alok Verma
The course of can be totally different for every safety. In case you’ve a financial institution mounted deposit, sometimes the identical financial institution will grant you an overdraft facility towards that FD. The rate of interest can be increased than the FD fee and is the incomes for the financial institution. If you’ve mutual funds, it’s possible you’ll strategy your banker to offer you a mortgage towards the models. Here the margin can be increased and it’s possible you’ll get solely 40% or 50% of the worth of the MFs. If you’ve a bond portfolio, the identical facility can be supplied to you at a decrease margin, because the returns on bonds are mounted.
The author is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to [email protected].
Source: www.financialexpress.com”