Own house is the biggest dream for every family. Most of us take home loans from banks but we don’t know how much money take loan from banks without getting troubles in future. There is a rule called 3:20:30:40 Rule
3 RULE :
3 rule is nothing but “Property cost should be less than 3 time your family annual income”
for example
Annual income of the family is 20 Lacks
3 times annual income is 60Lacks
Your property cost should be less than 60 Lacks
20 RULE :
Your home loan tenure should not cross 20 years
30 RULE :
The EMI paying against the Home Loan should be less than or equal to the 30% of monthly salary of the person who takes the loan
for example
Monthly salary of the person who takes the loan is 1Lack then choose EMI per month is 30,000/- or below
40 RULE :
This is very important rule we don’t know how much pay down payment . This rule states the pay 40% of home loan as down payment
