Paying off your home loan faster can help you save a considerable amount of money in interest and reduce the overall loan tenure. Here are some tips to pay off your Engineers home loan faster:
- Make frequent payments: Consider making payments on a bi-weekly or fortnightly basis instead of monthly. This will help you make one extra payment each year.
- Increase your EMI: If you have some extra funds, consider increasing your EMI (Equated Monthly Installment). This will help you pay off your loan faster and save on interest.
- Make lump sum payments: If you have received a bonus, inheritance, or any other lump sum amount, consider using it to make a part payment towards your home loan.
- Opt for shorter loan tenure: Choosing a shorter loan tenure will increase your EMI but will help you save a significant amount in interest.
- Refinance your loan: If you find a lower interest rate, consider refinancing your loan. However, make sure to factor in any refinancing costs.
- Avoid prepayment penalties: Before taking a home loan, check if there are any prepayment penalties. If there are, consider choosing a lender who doesn’t charge any prepayment penalties.
By following these tips, engineers can pay off their home loans faster and save a considerable amount of money.