Home loans over the years have gained immense popularity. It has helped a lot of potential homebuyers to buy their dream home or property. It is a feasible option when all the other doors are shut. In short, there is no more room for complaining about not being able to purchase a home due to lack of finances. Well, now that you have taken a home loan for 2 BHK flats in Thane, you know you have to repay it on time and without any delay. Delay in the same only leads to increasing the interest rates. This is where the importance of planning your home loan repayment comes into the picture. If not planned appropriately, home loan repayment can take a huge toll.
An individual can easily reduce the burden of home loan repayment through prepayment, either full or partial, increasing the EMIs or even shifting to another loan. Coming to the topic of how to plan your home loan repayment, mentioned are some tips that might come handy:
Know the Ways for Repayment
You can take advantage if the loan offers the flexibility to increase regular repayments or lump sum repayment without incurring additional charges or fees. Other than this, you can even decrease the burden by making frequent repayments. It can be done either weekly or fortnightly, whichever suits you the best.
Pay Off the Mortgage Quickly
One of the finest ways to save some finances on loan is by paying off the amount as quickly as you can. You should know the interest rates tends to increase when taking your time to pay off the loan principal. This further leads to higher loan cost overall.
Place Your Home Loan Repayment with The Cycle of Income
Another amazing way you can add when planning our home loan repayment is by aligning the repayment with the income cycle. In simple terms, you can pay the loan amount as and when your salary is credited. So, if you get your salary fortnightly, ensure you make the repayments fortnightly. By doing so, it maximises the amount that is paid against the home loan.
Do Not Lower the Repayment
You are advised not to lower the repayment even if your minimum home loan repayment drops because of a decrease in the interest rates. In fact, you tend to pay off the loan amount much quickly when you maintain your current repayment. This ensures you make your repayments on time, in fact, more than what was discussed.
Deposit Any Spare Cash If You Have
Another great aspect to reduce your burden or to repay the home loan is by paying extra repayments whenever you can. This further helps in reducing the interest cost of the home loan.
These are some of the simple yet useful tips one can consider when planning out your home loan repayment whether for ready to move-in apartment or under construction projects in Thane.