Is it advisable to opt for prepayment of housing loan in lumsum

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 Is it advisable to opt for prepayment of housing loan in lumsum , but major question is that , Bank / finance company charge and collect  interest component on entire housing loan amount in intial years,

Replies (2)
As per my view.,

NO... Interest will be calculated at the time of outstanding payment or Which will be paid by the borrower...

But,
Better to check out the details in Banks T/C in the Loan application...

 Thanks, Answer above  is not clear, there are 2 aspects of query.

1.. assume one  has certain funds, which he do not wants to invest in FD/ MF/ or utilize  for buying of furniture-jewellery

 then is it advisable /recommendable for him,to prepay part of housing loan .

2. as banks/ housing loan companies , opt  for EMI with major charged as interest component , minor is towards principle  ,in that scenario, whatever slum amount borrower repays , goes to interest component as major and minor towards repayment of reduced principle amount.

 so thus is it advisable for HL borrower to repay part of HL as lumsum one

 


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