How to Repay Your Mortgage Loan Quickly â€“ ESWARI CAPITAL
Posted On: 12-May-2022
If you can afford to pay loans faster, then why hold it for long and burden yourself with all the stress. Paying off your mortgage loan faster will reduce your debt burden to a great extent. It will also ensure that all your debts are cleared on time and you can avoid paying penalties or any late charges.
Let us look at the ways in which you can make your mortgage loan repayment faster.
- The greater your down-payment of home loans the lesser the principal amount. This means that the principal outstanding of your home loan is instantly lower. With a lower outstanding, the interest rates, as well as the overall payment reduces. This can be done by paying a certain percentage of the entire amount as the down-payment. Depending on the state of your finances you can pay a down-payment of 20% to 30% of the entire amount.
- Making a few part-prepayments during the repayment tenure of your home loan will help you by reducing the loan amount as well as the subsequent EMIs lessening your repayment burden. Once your EMIs are low you can pay them off quickly in a comparatively shorter duration. In case, you’re looking for simple and easy pre-payment options you can look up to ESWARI CAPITAL. It allows you to pay through flexible options and charges you no extra rate for it.
- Since we are talking about how to pay your loans faster, you can choose a shorter tenure period. Even though the EMI becomes quite huge when you choose shorter tenure but it helps you paying off the loan faster. The interest rate charged on shorter tenure period is lower than that of a longer tenure period. Also, the sooner you clear your outstanding the greater is the chance for you to avail loan in case your requirement of it arises. This will also improve your credit score.
- Before finalising your lender for your first home loan you must read the market carefully and compare each one of them based on their interest rates. The safest and the best option for you is to go for the lender that offers the lowest interest rate. This will ensure that your EMIs are affordable which will help you to pay it off easily and quickly.
- Pay your EMI in the amount as higher as you can afford. This will not only complete your loan repayment tenure in a shorter period of time but will also release you of all the stress and burden that comes along with loans.
We are sure we have given you some easiest possible ways to repay your loans faster. But it is important for you to know why you must do so. Paying off your mortgage loan will decrease the interest rate which you can put to some other use. These extra funds could be used easily to meet your other significant purposes.