So, Do You Really End up Paying More Interest than Premium?
Many borrowers do not realize that repayments on a home loan will be more than double the loan amount. The longer the tenure, the higher will be the interest payments – and higher is the chance that you will pay more interest than the principal. No matter how high or low your equated monthly instalment (EMI) is, its interest component will be very high in the initial years of repayment. Higher the rate of interest or the loan tenure, the slower is the reduction in principal in the first few years of the loan.