So, Do You Re­ally End up Pay­ing More In­ter­est than Pre­mium?

Consumer Voice - - Home Loans -

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.

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