Can I get my Home Loan Back (Principal & Interest)??
Most of us want to settle the Home loan because of the heavy burden of Interest we have to pay over the Loan taken & in the Span of 20 Years (Standard Loan Time), we would have been Paid more than the Principal amount.
If we get a Formula where we can get the Entire money (Principal & Interest) back at the End of the Tenure, then we will be the Happiest. This is not at all any magic but a Simple Math & Investment Strategy . A Good Financial Advisor Can easily help you to achieve this Goal.
Let’s Understand the Formula with the Help of an Example.
Let’s suppose you have to take a Home loan of Rs. 20 Lac @8.5% Annum for 20 Years –
Monthly EMI- Rs. 17356.
Total Payment in 20 years – Rs. 41, 65,552 (Principal – Rs. 20, 00,000 + Interest Rs. 21, 65,552)
Website Courtesy :- https://mutualfundcalculators.com
Now Start a SIP of 20% of the Loan Amount in a Good Sector or Small Cap Fund (Expected Return 15% with 20 Year Horizon) with the Help of Your Financial Advisor.
SIP Amount – Rs. 3500 Time -20 years,
Return Target -15% –
Total Invested Amount- Rs. 8,40,000
Gain – Rs. 44, 65,842 Total Corpus Accumulated – Rs. 53, 05,842
Return – Rs. 53, 05,842- Rs. 41, 65,552 (Loan paid) – Rs. 8, 40,000 (Invested Amount) = Rs. 3, 00,290
You get your home in Free with 3Lac Profit, if managed the EMI properly
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