4 Solid Tips to Choose the Best Home Loan Tenure

Home Loan Tenure

Are you planning to buy a new house?

You will have to apply for a house building loan.

Don’t worry. Your lender allows you to repay the loan over a long period. You can maximum up to 30 years to repay the loans.

So, your EMI payments will get evenly distributed.

But how will you choose the best tenure?

Well, many people opt for home loan with longer tenure. They aim to reduce their monthly instalments.

However, they end up paying higher interest in the long run.

Choosing a shorter tenure increases your EMI amount significantly. But you can clear your debt earlier. Moreover, your total interest outgo is also lesser.

But you also need to consider some other factors while deciding the tenure of your home loan.

Things to Consider While Choosing Your Home Loan Tenure

  1. Your Current Income and Expenditure

Calculate your earnings and spending. That will help you understand how much EMI you can pay. If you have enough money left after meeting your expenses, go for a shorter tenure. However, if your income does not permit you to pay a higher EMI, you can go for a longer tenure. It will reduce the burden on your finances.

Your Retirement

Your income will reduce drastically after your retirement. No one wishes to bear the burden of loans even in their retired lives. So, how to ensure a stress-free retired life?

 Well, you have to choose your loan tenure in a way that you have some time left before retirement. You must clear off your debt at least 5 years before retiring.  That will allow you to save for your retired life.

3.Interest Rate of Your Home Loan

It is one of the most crucial factors to consider while deciding your loan tenure.  The rate of interest will determine your EMI and also your total interest outgo. So, if the lender charges a higher interest rate, it is better to opt for a shorter tenure. That will reduce your total interest payments. However, if the rate of interest is low, you can choose a longer tenure if you want.

4. Your Life Goals

Yes, you read that right. You should consider the goals of your life while deciding your home loan tenure. Do you plan to get married?  You might also plan to have kids. You might be wondering what it has to do with your loan tenure. Well, do you want your EMIs to interfere with expenses like your child’s education? Then you need to make sure that your loan gets repaid before your children start schooling. So, do not forget to consider your life goals while choosing your loan tenure.

Shorter Tenure vs Longer Tenure: Which Is Better?

Well, no one tenure that suits everyone. You have to choose the duration of your loan based on your needs. What is a good tenure for someone else might not suit your needs?

So, consider the factors mentioned above and choose your home loan tenure accordingly.

However, if you wish to save money in the long run, it is better to go for shorter tenures.

Know Your EMI with A Home Loan Calculator

A home loan calculator helps you to know your interest payments. You have to enter your loan amount, income, and other details. It will display the EMI amount for you. Isn’t that great? It will help you in your decision-making process. So, do not forget to use it before deciding your loan amount and tenure.

Final Word

PNB Housing is the one-stop solution for all your loans. Their home loans are super affordable and easy to get.

The online application process makes sure you do not have to wait for days to get your loan approved. They will process your application within a few days and then transfer the amount to your account.

So, stop wasting more time. Start planning to make your dream house a reality.

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