You can take a loan from any bank or non-banking financial institution (NBFC) to purchase a home. The housing loan is one of the most sought-after and biggest loans in the current scenario. As the property value keeps increasing, buying a home is a great investment. Banks give a home loan for a considerable amount and charge a certain interest rate. The house loan EMI comprises both the interest and principal portion and is fixed for the loan tenure. Before I tell you how to calculate housing loan principal repayment, let me explain about repayment.
On several home loans, you have the option to make repayments monthly, fortnightly, or weekly. You can pick any option according to your budget. More repayments mean less interest, so weekly repayments are sure to save you a lot of money. However, you should keep your budget in mind before you commit to a weekly repayment schedule!
How to Calculate Principal Repayment Home LoanOnce you start making your housing loan EMI payments, the principal as well as the interest amount you pay change over time. When you take a loan where you make repayment towards both the principal and interest, you’ll pay most of your repayment towards interest in the start, and only a small amount goes to the principal repayment.
The lender generally lets you know about the exact amount that you will be required to pay monthly to pay off the housing loan. They usually amortize the schedule, in which you can see what amount is going towards principal repayment and what amount is going towards interest.
I want you to know that when you make your repayment, not all of it goes to paying off your loan. Some amount goes towards paying the interest first and then your principal amount.
I hope you like my answer on how to calculate housing loan principal repayment
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How to calculate housing loan principal repayment?
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2021-09-15T16:47:00+00:00 2021-09-28T18:33:05+00:00Comment
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