Prepare to buy a house with the 3/20/30/40 rule:Don’t buy a house more expensive than 3 times your annual income, understand its full math

Making a financial plan before buying a house is like designing a blueprint for the house. With a correct plan, first-time home buying keeps you away from financial crisis and stress. There is a 3/20/30/40 rule for first-time home buyers. Here is how it works: Now understand this with an example Many banks, including SBI, are offering home loans at less than 8% Many other banks, including SBI, Union Bank of India, and Central Bank of India, are offering home loans at interest rates below 8%. Home loan interest rates at Bank of India start from 7.80%. Meanwhile, SBI’s interest rates start from 7.25%.