Once, you decide to purchase your own house, you will obviously think of Home Loan too. A Home Loan is the best way to finance the purchase of a home purchase, but this is also the most vital decision that one must take care in life. This is because the prime focus of a Home Loan is to smooth the process of home purchase, however, it should not increase your burden nor make it more costly for you.
The best combination of applying for a Home Loan will be the shorter tenor and more EMI amount. You may be thinking that how will you manage to pay a higher EMI and you may become a defaulter in the future. But, think the other way round, if you have a higher EMI, you can do away with the loan easily and quickly.
You can take the help of a Housing Loan EMI calculator and calculate the exact amount of EMI on the basis of loan principal, loan tenor and the rate of interest. From there, you will be able to find how much you need to pay and how much you can afford to pay. Suppose, you can pay Rs. 5000 as EMI easily, but if you push yourself a bit and try to pay Rs. 6000 as EMI every month, it will help you to finish off with your loan at a shorter duration of time.
Watch the video to know how EMI calculator works:
The benefits that you can avail in the shorter tenor of Home Loan are policy changes are less likely in the short term, more savings in the long run, and faster realization of other financial goals.
To know the other factors, read: