 "Should you choose lower EMI or lower interest rate while taking home loan?")
- Loan tenures can go up to 30 years. Give thought to the tenure of home loan you opt for
- On a home loan of Rs 50 lakh taken at an interest rate of 8.5 per cent for 20 years, your EMI will be Rs 43,391.
- Your total interest cost over the tenure of the loan will be Rs 54,13,879.
- If you extend the loan tenure to 30 years, your EMI will become a more affordable Rs 38,446.
- However, your interest cost over the loan tenure will rise to Rs 88,40,443.
- In other words, your interest cost will increase by Rs 34,26,564
- Besides comparing interest rates offered by different players, also compare the processing fee, as this will make a difference to the total cost of your loan
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