Reasons to Keep the Loan Repayment Term Shot
Apr 14, 2017 Home Loan
After months of research and negotiations from the banks and seller for the right price of the property, when you finally find the home of your dreams, that feeling is unmatched. Some people buy it as an investment while others buy it just to save taxes; undoubtedly buying a property is a safer investment area. Thanks to the financial institutions and banks that provide a huge sum of the loan to the buyer to fulfil this dream. Since banks provide home loans up to 80 percent of the property price for the time period as long as 30 years, buyers stretch their financial margin to buy the property even when it is out of their reach.
At the time of taking the loan, a long time period seems like a better option as the per months EMIs will be low, but as the time goes on and responsibilities and other areas need financial attention, this turns out to be a huge mistake. A shorter home loan may seem like a burden while taking the loan, but it has long term benefits.
The sooner the loan is repaid, the better for the family and future investments. The cost of education is getting higher. And in future you will need money to invest in the better education of your education and home loan getting in between that will be stressful.
As you keep getting old paying home loan won’t be your only priority. It is better and wise to pay your home loans sooner rather than later. The sooner you finish off your one loan; you can invest your money in some other projects or make another property investment.
As a self-respecting person, buyers tend to take a loan from banks and not family. Repaying loan to your parents will be easier than repaying the bank or the home loan financing institutes.
Also, to repay you home loans faster, use the bonus money that you get on festive season and appraisal, rather than spending it on yourself. Treating yourself with gifts is good, but it is more important to pay off your loans sooner.
In India, home loans are treated with enormous pressure unlike the people in the west who aren’t so much bothered by it. Home loans are treated as burden and people even start facing health issue under the same, which isn’t healthy.
Also, it is better to pay off the home loans sooner because if in case you are not able to pay it off, the burden falls off to your spouses’ shoulder, which can cause a lot of financial trouble.
At the time of taking the loan, a long time period seems like a better option as the per months EMIs will be low, but as the time goes on and responsibilities and other areas need financial attention, this turns out to be a huge mistake. A shorter home loan may seem like a burden while taking the loan, but it has long term benefits.
The sooner the loan is repaid, the better for the family and future investments. The cost of education is getting higher. And in future you will need money to invest in the better education of your education and home loan getting in between that will be stressful.
As you keep getting old paying home loan won’t be your only priority. It is better and wise to pay your home loans sooner rather than later. The sooner you finish off your one loan; you can invest your money in some other projects or make another property investment.
As a self-respecting person, buyers tend to take a loan from banks and not family. Repaying loan to your parents will be easier than repaying the bank or the home loan financing institutes.
Also, to repay you home loans faster, use the bonus money that you get on festive season and appraisal, rather than spending it on yourself. Treating yourself with gifts is good, but it is more important to pay off your loans sooner.
In India, home loans are treated with enormous pressure unlike the people in the west who aren’t so much bothered by it. Home loans are treated as burden and people even start facing health issue under the same, which isn’t healthy.
Also, it is better to pay off the home loans sooner because if in case you are not able to pay it off, the burden falls off to your spouses’ shoulder, which can cause a lot of financial trouble.
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