By Chaitali Dutta
Should I search for a shorter tenure of three years for an schooling mortgage and is there any penalty for prepayment?
— S R Kumar
Typically, an schooling mortgage tenure can be 6-7 years because the compensation of the mortgage is anticipated to be completed by the scholar as soon as the course is over. However, if you happen to, as a dad or mum, really feel that it’s your duty to supply for greater schooling to your baby, then a shorter tenure is best. That means the full curiosity payout is smaller.
Can I switch my floating price residence mortgage to a financial institution on fastened price of curiosity?
— Ashok Bisht
Yes, once you do a stability switch of a house mortgage to a different supplier, you may tweak the traits of the mortgage. However, do calculate the full prices concerned within the switch. The further unfold of curiosity you pay for a set mortgage must be lower than the anticipated greater curiosity cost on the floating price mortgage.
My housing finance firm insists I’ve to pay a easy curiosity on the mortgage for pre-payment. Why is it so?
— VR Vishwanath
When full compensation is by a cheque, the supplier might add a number of days’ curiosity on the present stability, to cowl the fund clearance. The curiosity is calculated on the method of every day decreasing stability itself. But, if we take a look at the method, because the stability would stay the identical for these 2-3 days, a easy curiosity method would give the identical end result.
For a top-up mortgage, do I must have a house mortgage from the identical financial institution?
— Anmol Vatts
Yes, a top-up should be from the identical agency because the mortgage of the property is completed with the house mortgage supplier. A top-up mortgage can be basically a house mortgage; therefore the second supplier received’t be capable to have a safety to the mortgage.
Can one get Section 80E tax profit on curiosity paid on schooling mortgage taken from overseas monetary establishments for abroad schooling?
— Soumyashree
Interest on schooling mortgage is exempt from earnings tax if the mortgage is taken from a monetary establishment authorised by RBI. Hence, an schooling mortgage taken from a overseas monetary establishment, is not going to be coated underneath this clause.
(The author is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to [email protected].)
Source: www.financialexpress.com”