Unique tricks to Pay off your Home Loan:
- Strategically make partial prepayments:
Take a closer view of your monetary plans before thinking that you have to pay off the home loan. You can also think about refinancing your home loan. Refinancing will lower home loan interest rate and reduce the option for repayment. Make sure about your investments making the required financial profits. Then only you can choose the option for prepayment of your home loan. Any compromise with your financial aim to pay off loans faster will not be a good idea. Moreover, this decision might take you to an emergency situation. So if you have surplus in hand, you can surely opt for partial prepayment.
- Do not miss your monthly EMI payments
Missing your monthly payments is definitely not acceptable as this is problematic in many ways. It is recommended to pay your monthly home loan instalments to avoid hurdles. Moreover, delaying your EMIs will increase your financial burden. So to avoid this, you may choose the longer repayment tenor. You must make repayments timely to avoid your credit score going down.
- Apply for a home loan with short tenor.
To pay off your loan faster, apply for a home loan with short tenor. Even if there’s a possibility that you have to pay higher home loan but there’s some benefits. In the long run, the amount you have to pay will be less than if applied for a long tenor. Moreover, you may consider of taking loans again without hesitation if there’s a need.
So these were some simple but effective strategies you can adapt to save enough money. You can easily have the surplus to pay your home loan much before and lead a healthy life.