- 4 Efficient Ways To Pay Off Home Loans EarlyDecember 29, 2017
Home buyers are often burdened with the monthly EMIs of home loans while also facing financial crunch every month due to repayments. However, with efficient planning, home loans can be foreclosed leaving the home buyer stress-free to enjoy one of the most important assets of his life.
Following are 4 ways to help pay off the home loan early.
1. Efficient saving
It is highly recommended to start saving as soon as the home loan is availed. It will be beneficial in the long run to make substantial cuts in expenses as much as possible in order to make monthly repayments easy. Cutting back unwanted luxuries will ultimately result in making a significant impact in savings.
2. Larger repayments
Making the monthly repayments slightly higher should be considered to help reduce the principal amount, even if it is in smaller amounts. This will in turn reduce the interest amount and help reduce the loan tenure by at least one or two years.
3. Refinancing loan
Replacing the existing loan with a new loan is another easy way to pay off the home loan early. Available only for those with a sound credit history, refinancing a loan can be useful to obtain a lower rate of interest with better terms. And a lower interest rate with the same monthly repayment will mean that the large share of it will be considered for clearing the principal amount.
4. Using windfall gains
Even if one is not able to afford substantial savings to make efficient repayments, he can always utilise bonus pay outs and tax returns for the same rather than spending them during festivals. Using windfall gains or any additional money for clearing the home loan is always considered a smart move.
Ladder Mankav Greens, the flagship project of Ladder Kerala, one of the reputed residential developers and builders in Kozhikode, Kerala offers a range of ultra-luxury flats and apartments for sale in Calicut coupled with the best in class luxurious amenities and offers home loans at an amazing interest rate of 4.99 percent.