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Do you prefer paying off home loan early?

Do you prefer paying off home loan early?

Do you prefer paying off home loan early?

Purchasing a home is one of the most common desires of people in India. The available option of home loans is the greatest help one could ever hope for for fulfilling his/her dream of owning a home. However, the help comes with its own challenges for example one has to have a good credit history.

Once an individual opts for a home loan and becomes the owner of his property, starts the elongated process of paying EMIs and shelling out a great part of the monthly income. But have you ever given a thought to paying off the home loan earlier than the time period that you opted for? Do you think that removing the debt hat might be beneficial financially? To understand the perspective of home buyers and home seekers, Makaan.com researched whether they prefer paying off home loan early. In the survey, the maximum number of people said that they will prefer paying off early; however, 13% of the people were unsure as they did not have a clear idea about its advantages. The following information aims at helping the home buyers know more about paying off home loan before the time period.

Before finalizing on a home loan, apart from calculating the interest that has to be paid off, one should also take in consideration the capacity and the time required to pay off the loan completely. According to many industry experts, it is beneficial to pay off the home loan at the soonest probable time.

You should always compare between the various sources from where you can take home loan. Read the terms and conditions in detail and give quality time to documentation. One should be familiar with all the categories of fees that are to be paid under the agreement. Prior to taking a home loan, understand whether there is a pre-payment fee or rebate that is given for early or on time payments.

Be observant about the rise and fall in the interest rates. At times, when the interest rates fall unexpectedly and drastically, it is advisable to keep the option of refinancing handy. It is wise to recognize and check as to how the interest is calculated and the impact of the fluctuations in the rates on your annual, quarterly, or monthly payments.

Calculate your finances that include all the bonuses and other financial gains and make the payment of home loan a priority. Being ready and upfront with the payments also helps in emergency and financially crunch situations.

One should always weigh the options of paying off home loan early and have a systematic plan for doing so. One can enjoy the sole ownership of the home as early as one pays off. Buying a home is one of the most significant financial investments that one ever makes; therefore, it is only advisable to do a proper market research and survey prior to finalizing anything. For more of such poll reports and to cast your vote in a poll, visit MakaanIQ.

Last Updated: Mon Jul 08 2013

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