Relatively little principal is paid off in the early stages of the loan, with most of each payment going toward interest.
Understanding the loan amortization schedule can help an individual to determine where to focus to pay down debt.
Home loan borrowers are the worst impacted people due to the sharp rise in lending rates
Borrowers with a big outstanding and longer tenures will be hit the hardest.
“Loan interest is often the biggest expense in home ownership. So, the lesser it is, the better,”
Existing home loan borrowers can use surpluses parked in low-yield fixed income products to make home loan prepayments.
The interest rates charged on home loans are usually higher than the interest rates offered on most fixed income products,
This may be the best time to go for partial prepayment or accelerate your prepayment and reduce the interest burden.
Any partial prepayment brings down your loan outstanding instantly, reducing the interest outflow also.
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