“Pay Off Home Loan Quickly”
For anyone who has ever borrowed the home loan; paying it as quickly as possible is the main concern. Well, taking home loan might relieve a little stress but then again how to repay it is the main question.
And without any ignorance; one must always think about how to pay it quicker because it acts as a better option.
I understand; paying a particular set of amount for at-least years from your salary is something that hurts a little no matter what. And the biggest problem is when sometimes the interest rate that you pay to your lender may end up making the re-payment amount bigger as compared to the amount you have borrowed.
Thus to pay off home loan quickly use these useful tips.
- Financial Plan shouldn’t be ignored
Once you’ve made up your mind to pre-pay the amount; just make sure that you don’t ignore all the other financial status in your life. Make sure that the other investment you have done and the returns you’ll be getting are enough to look after your financial goals without providing any burden.
If the calculations goes up well and is suitable then be free and sorted to pre-pay a certain amount.
- Increase in down payment
One best thing you can do is while you’re taking a certain amount of loan; you can always pay higher down payment so the rest payments made on agreement turns out to be lesser.
Suppose if you’re not able to pay even 2000/- (based on agreement) then for the next month it can end up making the re-payment amount bigger for you. So, think smartly.
- Use annual bonus to pre-pay loan
If you’re lucky enough to get annual bonus; don’t spend it on other things e.g. buying household heavy items or vacation and stuff. Instead use that particular bonus amount to pre-pay the loan.
Doing so will reduce the pressure off your shoulder.
- Pay money before it’s due
Suppose the first payment is said to be done on 20th of so and so month. If you’re not sure about paying the total fixed amount right on the settlement date of the month then make sure at the start of the month you collect money and pay it off. (A little early is always good)
- Try to always save money
Quit spending money on other things that can be enjoyed later as well. In short, compromise a little more and try to pre-pay amount whenever possible. It will help you a lot to get rid of the home loan quickly.
Use the above mentioned ways and pay off home loan quickly. If you have an queries then leave a comment below.