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It is every ones dream toown a house and taking home loan to fulfill this dream is the most preferred way for most of them. But till you doesn't pay off your home loan house is not yours. So it’s also important to pay off the home loan early to get the full ownership of the house.
Let’s see how we can payoff the home loan early.
1. Opt for lesser tenure
Now these days some home loan lenders giving loan for 25 yrs tenure. Mostly people Opts for long tenure since long tenure reduces the EMI amount. Doesn't fall into this trap. You should understand that irrespective of tenure or EMI amount, the interest part EMI remains same. So if your interest rate is 11% that means you have to pay 11% interest annually irrespective of tenure, what it mean is the more is tenure the more interest you are paying.
You should opt for the minimum tenure you could afford. This will reduce the total interest paid.
This post first appeared on Finance Bandhu, please read the originial post: here