The following factors would affect your home loan EMI:
- Interest rate- The interest rate is directly related to the EMI. The higher the interest rate, more will be the EMI and interest cost.
- Loan amount- Higher the loan amount, more will the EMI and vice-versa.
- Loan tenure- Longer tenure results in low EMI. However, the interest cost incurred is usually higher.
- Balance Transfer- Transferring your home loan to a lender offering lower rates reduces your home loan EMI.
- Partpayment- When you pay a lump sum amount towards your principal before the loan maturity date, the outstanding loan amount reduces. This reduces your monthly installments and the overall interest cost.
