3 Things That Can help You Repay Your Home Loan Faster
Shashank Suri, 33, started greying prematurely apart from putting on weight. His friends would have fun at his expense and joke about his "receding hairline" and "increasing pounds", in reply to which Suri would flash a confused grin. The jokes will take a toll later when Suri would look in the mirror and think about his bygone days when he was termed a handsome dandy by his classmates and work colleagues. Suri attributed a large part of his physical decay to the home loan burden he imposed on himself when he was 30. Day and night, he keeps thinking about how he can get rid of the load as soon as possible.
Don't be mistaken. We are not saying being under a home loan is a bad thing. Many of us, as a matter of fact, will not be able to enjoy the title of being a home owner if we did not have financial institutions to bank upon. But, people have different temperaments; while a home loan and the monthly EMI (equated monthly instalment) may seem like a financially prudent option to you, it may seem like a gigantic burden to others. A loan repayment tenure of 20 years may have a drastic impact on the physical and emotional health of the latter category. So, how can this category repay the loan as fast as it can?
- You were quite naïve when you decided to take the loan. A self-respecting man as you are, you did not want to take the help of your family member in financing the deal; going to the bank looked like a better idea. Now that you realise that the interest on the home loan is killing you slow, you could ask your parents or siblings to help you with some money. More than anything, freedom from the loan is the only thing that is on your mind right now. Owing to your parents is not as burdensome as owing to a financial institution; not to mention the fact that you will not be paying them any interest on the loan that you take.
- At the time when you bought the house, you did not have enough money to invest in furniture. You could not doll up the house as you would have liked. So, when your office gave you a grand raise in your salary apart from an annual bonus, you started making plans to have a brighter Diwali by investing in expensive furniture and fixtures. Those who dread the idea of a loan burden would better not put the money in that direction yet. The furniture can wait.
- You have your share in your ancestral property but it has been years since you even paid a visit to that place. Your cousin, on the other hand, is trying to use the property to build a farmhouse there and has approached you to sell your share to him. Your parents have advised to refrain from taking the offer because of the emotional value attached to it. Why not sell your share to your cousin and use the money to prepay your loan? In all likelihood, neither you nor your future generations will be tempted to turn towards the rural India.