Firstly, it reduces the overall interest burden as the outstanding principal amount reduces, which means lower interest on the remaining balance. There are several benefits of making prepayments on a home loan. In full prepayment, the entire outstanding balance of the home loan is paid off in one go, while in partial prepayment, a certain amount is paid towards the principal outstanding. Prepayment can be done in two ways- full prepayment and partial prepayment. Essentially, it means making an early repayment of the loan amount either in part or in full before the tenure of the home loan comes to an end. Home loan prepayment refers to the act of prepaying a part or all of the outstanding principal amount of a home loan before its scheduled due date. The easy to use calculator requires you to input fields namely:īased on the values you input into the fields, you can view the new EMI to the right of the calculator post prepayment. Home loan calculator with prepayment helps you determine the amount you can save using prepayment. It can not only reduce your debt but can also save you from paying excessive money in the form of interest. Prepayment is one of the few ways in which you can either reduce or consolidate your debt by repaying the loan in part (or full) before the completion of full tenor of the loan.
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