Home loan is one of the biggest commitments in life for most people. This long-term strategy in order to acquire your own home is the most viable option. Consider the fact that 80-85% of all the homes purchased are through home loan facility.
Once a person has taken the home loan there are certain tactics to ease the burden of home. Smart individuals can take make use of a good advisory and see if their home loan commitments can alleviate in the long run.
Here are the tips to ease the burden:
Prioritize Your EMIs
To repay your home loan one must make it a priority to make the EMIs first thing every month. Being consistent with your payment not just relieves stress but also maintain the creditworthiness in good shape. Remember, that even a single miss in the Earnest Monthly Instalment (EMI) will attract penalties and it will be very difficult to catch up on it in the later stages.
Periodic Lump-sum Payment
Making a periodic payment in your good days will ease your burden in future. In the months of bonus or salary-hikes resist the temptation of indulging in luxuries and instead use the excess to pay for your home loan.
Higher EMIs means Less Amount to Repay
The higher your EMI amount, lesser and shorter will be your overall repayment amount in the long run. Suppose you decide to pay an EMI of 25,000 per month compared to 15,000 then your interest outgo would be higher in the end. So, the higher EMI amount seems burden in the short run, but in the long run, it is always a smart decision.
Extra EMI Plans
If you can make a plan to pay an extra EMI every now and then, it reduces your burden in the long run. In your difficult days of finance shortfalls it will be convenient for you to count on the extra EMI paid in past as you are ahead of the time.
If you can work on these tips while managing your home load EMI then you will be able to successfully close the loan in or before its due time.