Why prepayment of home loans is better in early years of tenure than later. Explained
- Home loan prepayments simply mean you pay a certain portion of your loan amount earlier than the planned repayment period. Generally, a borrower tends to pre-pay their loan amount upon having surplus funds.
Home loans are one of the best options available to gather quick funds for buying your dream house. The process of getting a home loan is also easy and flexible depending upon criteria levied by lender to lender. After home loans, all a borrower needs to ensure is to pay his or her Equated Monthly Instalment (EMIs) on time. EMIs are a mixture of the principal amount of home loans along with a certain percentage of interest rate that a lender levies while lending the loan amount. There is also a prepayment option available on home loans, and they do bring in a lot of benefits in easing your EMI burden. But it is important to understand when is the right time to make prepayments of your home loans to benefit substantially.
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