How To Plan Home Loan Prepayment BenefitsPosted by Noor Shaikh on November 10th, 2016 Does the outstanding amount on your Home Loan give you sleepless nights? Here’s help. We’ll tell you how to plan regular prepayments on your Home Loan. Prepayment can gradually reduce the burden of a Home Loan for real-estate investors. If you want home loan prepayment benefits on a regular basis, you can shrink both the principal amount and the interest on the loan. Think of it like eating a chocolate bar. A really big chocolate bar. Is prepayment easy? On home loan prepayment benefits Banks generally don’t charge a prepayment penalty for your Home Loan. That makes prepayment a piece of cake, right? All right, enough with the food analogies. Let’s tell you how to plan your prepayments. How to fund prepayments on your Home Loan Accumulate funds How do you do that? Invest a certain amount regularly in savings such as equity or debt instruments and build a sizable fund. Use this to chip away on your home loan prepayment benefits. Bonus money and asset liquidation Are you due to receive a bonus from work shortly? You could plan to use your bonus to fund your home loan prepayment benefits. Some of your investments not earning high enough returns? Consider liquidating these funds and divert them towards prepaying your Home Loan. Additional Reading: Dos & Don’ts of Home Loan Prepayment Benefits It helps to prepay a Home Loan
Some factors to consider Think about this before you leap into making Home Loan Prepayment Benefits.
When NOT to prepay a Home Loan It’s not always the best idea to make prepayments on your Home Loan.
It always helps to think about Home Loan Prepayment Benefits through. Thoroughly. {Source: https://in.finance.yahoo.com/news/plan-home-loan-prepayment-053057903.html} Like it? Share it!More by this author |