Is It Wise to Prepay Your Home Loan? Exploring the Benefits | Gunjan Goel Pune
Owning a home is a significant life milestone, accompanied by one of the most substantial financial commitments one can undertake. For many homeowners, the dream of paying off their mortgages ahead of schedule and liberating themselves from the shackles of debt is a compelling one. The Power of Principal Prepayments Typically, when you start making regular monthly payments on your mortgage, a significant portion of those initial installments primarily covers the interest, while only a smaller fraction contributes to the principal amount. Gunjan Goel Pune However, as the loan term progresses, this dynamic gradually shifts. With each installment, a more substantial share starts chipping away at the principal balance. By making additional payments, you can expedite the repayment process and substantially reduce the overall interest paid. Understanding the Interest Component It’s crucial to recognize that the interest component is more substantial at the beginning of the home loan te...
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