Are you willing to be much better out of pre-expenses your house or investing the money?
It can really confidence brand new value for your dollar. Let us consider that it, from the increasing into the earlier analogy. So you can review, you have 20 seasons, 12% drifting price mortgage of Rs 50 lakhs, the place you pay a keen EMI regarding Rs 55,054. Let us assume your prepay Rs 1 lakh yearly, whenever you are retaining your own EMI and you may decreasing the loan period on a yearly basis. As much as possible prepay Rs step one lakh every year your mortgage was fully reduced of the 13 decades cuatro months merely, rather than the 1st period regarding 2 decades. New chart below shows the interest and you may dominant repayments of the financial EMI, which have a good prepayment out of Rs 1 lakh annually.
Today let us look at the choice circumstance.