It is normal to want to pay off your home loan sooner than your chosen tenure, as it can be a financial burden to carry. So, here are a few things you could try to do to pay off your home loan faster than the chosen tenure.
If you are looking to get rid of the financial burden of your home loan, then you can choose to pre-pay your home loan amount and close it. Pre-payment is done when you have enough money to repay the outstanding loan amount in one shot and want to do so before the chosen loan tenure. This can help you close your home loan soon. There is generally a lock in period of 6 months or 1 year after which you can pre-pay your home loan and close it.
2. Part pre-payment:
If you have enough money to make one large payment, but not enough to pay the entire outstanding loan amount, then you can opt to make a part pre-payment on your home loan. This can help with reducing your EMI or your loan tenure. A part pre-payment is generally a minimum of three EMI payments. This can help reduce your financial burden.
3. Low interest loan:
If you want to close your home loan immediately, you can take a low interest loan such as a gold loan and use that loan amount to close your home loan. You can then repay the low interest loan with ease over the chosen tenure.
4. Sell the house:
If you are in a dire state and need the money to repay the loan, you can sell the house that you have bought to clear the loan amount with the lender. This is the last option you can resort to in order to close your home loan with the lender you have borrowed from.
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