i have taken home loan of 17,37,000/- Rs. from HDFC bank, with initial tenure of 20 years. (i have paid only 1 emi till now, so it's fresh loan). Now i was just wondering whether tenure of 10 years or 20 years will be benifetial?
i did some calculations in following way for the period of 20 years:
if i go for tenure of 10 years:
emi = 24,921/-
so i pay emi for first 10 years,
and then i start investing full 24,921/- (in MF, eqquities, etc).
so my returns after 20 years (from now) will be 49,80,000/- (compounding with investment of 24,921/- pm for 10 years with return 10% pa avg.)
if i go for tenure of 20 years:
emi = 19,126/-
so i will have 5874/- (i.e. 24921-19126) cash available in my hand pm.m for investment for 20 years
so my returns after 20 years (from now) will be 42,19,000/- (compounding with investment of 5874/- pm for 20 years with return 10% pa avg.)
so, in above way, i see that tenure of 10 years will be benificial for me. But still i am not considering income tax benefit, and also am i doing compounding calculations in correct manner?
can anyone help me to analyze my calculations and point me to the correct decision?