Is it necessary that the home loan EMI should be more to finish off the loan earlier?
The answer is definitely, yes.
But everything in the world has exceptions. Similarly, the exception for not increasing the EMI can be, either you invest in some thing else worth or you can not afford paying more.
As we know, reducing the EMI will lead to longer tenure.
Before you take the step, ask yourselves.
- Can you bear the EMI for such long tenure?
- Can you finish the loan before you retire?
- Is there any other alternative?
- Is there a proper plan as to what to do with the rest of the extra(to-be-paid for the EMI) money, every month?
- Can you assure that the extra money is invested for a better cause?
The valid reasons for lessening your EMI can b
- Investing where you get better returns when compared with the present scenario.
- Financial crisis.
- Opting for a bigger amount of loan.
If you have a really strong reason and a well planned investment for the increased disposable income, it is a recommended suggestion.