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Showing posts with the label partial prepayment of home loan

Pre paying your home loan

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 Prepaying your Home Loan Pre-closing the home loan means closing the loans before the completion of actual tenure Home loans are usually availed for a long tenure by borrowers to minimize the EMI pressure.  Prepayment is a facility that allows you to repay your home loan before the completion of your tenure. Prepaying your home loan means savings on interest and reduction of principal outstanding. Usually, customers opt for prepayment when they have surplus funds. Pre-closing a loan means clearing off your dues with a single payment. Prepayment means making part payments on your loan over and above your EMIs. Before Prepaying your home loan The interest rate at a record high Compare your return on investment with the cost of a home loan Repay higher-cost loans first Consider your cash need for emergencies, goals When to Prepay home loan Interest rate record high The higher part of EMI goes towards principal repayment Bulk income, bonus incentives received Prepaying your home loan Ther