How is interest cut in a home loan?
One of the key reasons that influence the amount of interest you must pay is your term loan. Though lengthier tenures, such as 25 to 30 years, reduce the monthly installment amount, shorter tenures, such as 10 to 15 years, assist in minimizing the overall interest payable. Using a house loan EMI calculator, you can see for yourself how the interest rate is substantially lowered for loans with shorter terms. So, before you sign up for a loan, carefully consider the duration so that you don’t wind up paying more interest on your loan.
Lenders’ quoted rates are annual rates. The interest payment on most house mortgages is computed monthly.