Home Loan: Buying your own house is one of the most expensive deals and for this people take a home loan by mortgaging their documents and a large part of the salary is spent every month in paying its EMI. To avoid such hassles, every person wants his loan (lowest home loan rates) to be over as soon as possible. For this, if you want, you can reduce the period of the loan by adopting some easy tips. Let's know about these tips.

How is the monthly EMI calculated-

Let us understand this through an example. For example, suppose you have taken a home loan of Rs 50 lakh, that too for 25 years. This home loan has been given to you by the bank at an interest rate of 8.5 percent (home loan interest rate), so according to this, if your monthly EMI (Home Loan EMI) is calculated, then every month your monthly EMI is Rs 40,000.

This much EMI on a loan of Rs 50 lakh-

In the initial years of giving the loan, the bank charges more amount from your loan (Home Loan EMI calculation). For example, you pay Rs 4.80 lakh through an EMI of Rs 40,000, but still, the principal amount of your loan is reduced by only Rs 60,000, and Rs 4.20 lakh is spent only on paying the interest.

This tip will reduce the tenure of the loan -

If you have taken a home loan and you want to finish the 25-year home loan in just 10 years, then for this you will have to make the payment with the right strategy (home loan best strategy). First of all, pay one EMI extra every year, that is, whenever you pay the monthly installment, make an extra payment of Rs 40,000 along with it. This will reduce your money not from your interest amount but from the principal amount and the advantage of this will be that the tenure of the loan (home loan tenure) will be reduced. This will also reduce the tenure of the loan (How To Close Loan Faster) from 25 years to 20 years.

Know what is the second tip -

On the other hand, talking about the second tip, for this, you will have to increase your EMI at the rate of 7.5 percent every year and this will reduce your home loan tenure from 25 years to just 12 years and once your loan tenure is reduced, then due to the reduction in the loan tenure, you will have to pay less amount for less time and you can get rid of the loan hassle soon.

Benefits of the third tip -

Now comes the third and most important tip. This is also the best strategy (short tenure of home loan) to get rid of the hassle of a loan soon, using which you can close your 25-year loan in 10 years. Or it is a mix of the first and second strategies. Let us tell you that for this you will have to deposit an extra installment of Rs 40,000 every year (Home Loan EMI tips) and along with this, you will have to keep increasing the EMI at the rate of 7.5 percent every year. This will reduce the tenure of your loan to just 10 years.

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