Home loans are a nifty way to get you landed in your dream home without excessively digging into your savings or your inheritance. But when it comes to paying the EMIs, only a few of us are lucky to manage the sudden overheads after moving into our cozy homes. Home Loan EMI Calculator and a set of carefully planned moves can save you from all the headaches. Recently, Jiyo Zindagi Plan has been launched by Investors Clinic that allows you to pay the EMIs two years after possession which means that you will have 2 EMI free years even after possession.
Most of the means of repaying your home loans are within your reach, but somehow they remain imperceptible. RBI has acted as a great savior as it has cut down the rate of interest, which is a big help for people who have taken loans. Generally borrowers can make some prepayment of a part of the loan (if they have surplus cash) to reduce the interest burden or they can increase the EMI (if they can afford) to reduce the tenure period and therefore the overall interest paid.
A simple look at your home loan calculator-
Processing fee (which might be waived off due to promotional schemes)
From the above key factors which can help you contribute to a healthier repayment scheme are-
Higher Frequency and Amount of Prepayment- If you have bought a home recently because of a hike in salary or a bonus or sudden gains in stocks, whatever the reason, it is a nice idea to use whatever the windfall towards settling the loan by adding a little prepayment amount now and then. The higher is the frequency of repayment, lesser the number of years for you to bear the loan. The same holds good for the higher the amount of repayment, it effectively cuts down the principle amount and hence the rate of interest.
Lower Rate of Interest- An option to switch banks may be a wise decision if lower rate of interest can be availed. Keeping an eye on different rates of interest will help even if the EMI is the same the interest rate will be less.
Higher EMIs- It’s always a good idea to analyze your monthly expenditure, especially if you have to repay a home loan. If you can afford to cut down on your spending and increasing your EMI marginally, bit by bit, that amount adds to a sooner repayment of loan and a lesser rate of interest.
Home Loan EMI calculators are an easy way to plan. You should be saving, investing and spending in order to get the most out of your new home and your total income. Owning a home is a joy and a dream fulfilled which can be experienced only after you have paid your loan.
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