What is a Home Saver Loan?

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Home Loans
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What is a Home Saver Loan?
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• Pre-payment of home loan is a double-edged sword.
  It reduces the future obligation but at the same
  time, also incurs opportunity cost and risk in
  case of an emergency when you urgently need cash.
  This is exactly where a home saver loan helps.
• Background Home Loans or Mortgage is one set of
  financial transactions that almost every one of
  us is bound to encounter at least once during our
  life time, and then deal with it for a majority
  of our life. So, any available option in this
  area should be explored very carefully.
• Most of us, after a few years of running a
  successful EMI schedule would also look at the
  option of pre-payment of home loans.

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• What is a Home Saver Loan? Home Saver Loan is a
  kind of loan where you have a dual advantage of
  pre-paying your home loan
• (and thus reducing your balance amount or tenure
  or both of EMIs) as well as having ready cash in
  hand which can be withdrawn in case of an
  emergency.
• How does a Home Loans work? The concept, though
  simple, is powerful.
• The idea is to make use of your deposit in your
  current or savings account to offset a part of
  the principle.
• Once some of the principle is offset, interest
  obligation comes down.

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• Such savings can be quite huge when you consider
  the fact that EMIs will have to be paid for
  several years more.
• What if you do not have immediate funds ? In that
  case, even when you deposit a recurring amount in
  your account, this deposit will still be
  subtracted from principle outstanding to
  calculate the EMI.
• The savings would be less in initial months but
  will compound in the later part of the tenure.
• Source http//elevate-your-life.blogspot.in/2013
  /02/what-is-home-saver-loan.html

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