HousingLoanPrepaymentPlan
UnderstandtheimplicationofreducedtenorversusEMIs
Lenders usually offer two options once you make a part-prepayment. The first one is reducing the subsequent EMIs for your housing loan. This helps you free up more income and use it towards other needs or obligations.
Explorebalancetransferoptionsforoptimalsavings Before making a prepayment, check with different lending institutions to see their current home loan interest rate and consider refinancing your loan. Use the handy home loan prepayment calculator to compute how partial prepayment can help you save on total interest.
Suppresstheurgetousesavedemergencyfunds For most borrowers like yourself, prepaying a large portion of their housing loan with savings is a common decision. However, keep in mind that emergency funds are meant for crises. If you apply this money to prepay your housing loan, then it may detrimentally impact your financial wellbeing later.
when you are servicing a housing loan, it is prudent to plan your investment well ahead of time and continue to grow your wealth while repaying debt. Make sure you choose low, medium, and high-risk options to compound your earnings based on your income, goals, age and risk appetite.
Prepayusingplannedinvestmentreturns Even
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