HOME LOAN - IN YOUR INTEREST
Dec 05 2015 : The Times of India (Pune) The interest rate and tenure are two factors that have a bearing on the EMI you pay towards your home loan Home loan repayments are made by way of equated monthly in stallments (EMIs). EMIs are arrived at by clubbing the principal and interest payable, divided by the number of months of the loan tenure.The EMI stays constant, divided equally across the loan tenure. Usually, the changes in rate increase or decrease are reflected in the form of a reduced or increased tenure as the case maybe, rather than any change in the actual EMI paid every month. When you are paying an EMI, you are paying an interest component and a principal component in it. It is to be noted that in the initial years a major part of the EMI comprises the interest portion and only a small part goes to wards the principal repayment.In the later years of t the loan tenure, the composit tion changes the principal portion is more than the interest portion. T