Yes you read it correct Home Loan @ 0% interest rate. You must be thinking it as some prank or a fake freebie but no its true you can make your HOME LOAN interest free if you execute the calculations which we are suggesting you in succeeding paragraphs.
Possession of a dream home is the most important task of anyone’s life . However, this dream home also brings you burden of home loan interest & it is important to know that highest part of repayment is Interest on a home loan.
Now if you plan intelligently then you can get back all your Home loan interest you pay through EMI thereby making your home loan interest free.
For instance consider that you have availed a Home loan of 20 lacs for 20 years with an interest rate @ 9.5%. Calculations are as under;
Your Monthly EMI - Rs.18,643/-
Principal Amount payable - Rs.20,00,000/-
Interest Payable -. Rs.24,74,230 /-
Total Amt Payable -. Rs. 44,74,230/-
Way to get your Home Loan Interest Back
1. In addition to your EMI, invest 0.15% of your home loan amount in Equity Mutual Funds via SIP mode. In this case Rs 3000/- (0.15% of 20,00,000/-) per month till the tenure of your home loan.
2. Invest a Lumpsum (if available) amount 15% of your home loan amount in Equity Mutual Funds. In this case one time investment of Rs 3,00,000/- (15% of 20,00,000/-) till the tenure of your home loan.
Projected Results After 20 years (Which is tenure of your Home Loan)
HOME LOAN @ 9.5%
SIP @ 12.5%?
LUMPSUM @ 12.5%
Interest on SIP - Interest on Home Loan = 2488559- 2474230 = 14329
Interest on Lumpsum - Interest on Home Loan = 2863528- 2474239 = 389289
The end result after 20 year clearly indicates that the Home Loan & SIP combination or Home Loan & a Lumpsum combination would definitely make your Home Loan interest free and you can be a proud owner of your dream home with sound financial state.
Visit www.investocafe.com to know about mutual fund investment options and stay on path of financial freedom
Happy Investing !!!
Written by: Anvesh Pandey, SEBI Registered Investment Advisor