Comments on Shyam's Column: Prepare for higher interest rate on your home loan...

sathiesh - please check your calc.

2010-01-22T12:13:57.458+05:30

sathiesh - please check your calc.

Sir, One doubt on your article on Oct 8 2009 - "...

2010-01-18T20:35:05.536+05:30

Sir,

One doubt on your article on Oct 8 2009 - " Prepare for higher interest rate on your home loan " -

How

For our example that would be PV(0.75%, 240, 30000) = 33.34 lacs.

It will come only to Rs 54000 and not 33.34 lakhs as you mentioned

please clarify my doubt

Re

Sathiesh kumar

Jambu - interest rates are hard to predict...so on...

2009-12-04T12:32:17.156+05:30

Jambu - interest rates are hard to predict...so one cant really say what the interest rate on your variable rate loan is going to be 5 yrs form now. The best way to deal with this is to use the margin of safety method laid out in the article. Take a look at the maximum level interest rates reached during the last 10 yrs. Now see if the interest rates where to go back to those levels (14%-15% range) will you still be able to afford the EMI on your loan? That's the best planning you could do.

I read this in hindu. Thanks for the home loans f...

2009-11-06T21:42:15.527+05:30

I read this in hindu.

Thanks for the home loans formulae , helps in my own decision making for home loans.

Any formula avbl for variable rates (annual step up increases of fixed rates of our banks) ?

thanks again for your timely help.
jambu.
"jambu.ganeshk@workmail.com"

Hi Manish - I appreciate the work that you are doi...

2009-11-02T19:08:36.824+05:30

Hi Manish - I appreciate the work that you are doing thru your website

Asif - thanks for the kind words

Guha - as usual a wise observation!

sir when will u publish ur next article in ur site...

2009-11-01T01:03:32.039+05:30

sir when will u publish ur next article in ur site????????

we r waiting ur coming article....

The concept of using future money came from west. ...

2009-10-16T21:21:57.163+05:30

The concept of using future money came from west. I believe our previous generation were more happy in using the money what they had instead of spending the future money now( then take the pain of paying EMI's).

Aleast the westerners have social security from the govt during their sunset years, what do we here and fail to understand as why are we following the west in following the credit funding route.

I am a regular reader and great of both of you Shy...

2009-10-08T18:40:57.061+05:30

I am a regular reader and great of both of you Shyam & Manish !!!

Excellent article ... keep up the good work !!!

Thanks,
Asif

I am your fan .. This is a great post and it has...

2009-10-08T14:02:33.405+05:30

I am your fan ..

This is a great post and it has taught me something amazing .

Most of the people do invest in Real estate just because they are not able to see the dark side of it .. They do not want to consider the case when home prices crash and it turns out to be a asset that is a burden .. Just because prices are rising , they will invest in it without figuring out if they can really afford it . Same thing happens to Equity markets most of the case .

This is what i call other face of risk . People concentrate on their "willingness" to take risk , but never the "Ability" to take risk ..

My email is manish.pucsd@gmail.com

And I am a Financial Planner , I write at http://www.jagoinvestor.com

I would like to hear your views on this small study by me on "Equity returns in long term" : http://www.jagoinvestor.com/2009/10/4-charts-which-will-change-your.html

Manish