How to close home loan early?

When you apply for a home loan, you are in for a long haul. So long that it may take 25 to 30 years for you to repay the home loan. But there are times when you try to repay the loan quickly because your financial circumstances have changed for the better. If you are wondering how to close home loan early, I can share a few tips with you on the same. Read through and tell me if these tips help you. Go for a shorter loan tenure The first thing which comes to my mind is to opt for a shorter loan tenure. You can perhaps apply for a home loan for 10 or 15 years. However, if the loan tenure is shorter then the repayment amount will be a little higher. Go for home loan balance transfer You can choose to transfer your home loan to another bank which offers a lower interest rate and accordingly you can choose the loan tenure which is shorter than the earlier loan arrangement. A new lender may offer you a top up loan which can help you repay the home loan quickly. Find out how to transfer home loan from one bank to another Prepay your home loan Whenever you have surplus funds, you can choose to prepay your home loan to reduce the burden of home loan from your shoulders. It is advisable to indulge in this activity occasionally. There are nominal pre payment charges levied by the banks for pre payment of loan. These are the top 3 ways in my opinion on how to close home loan early. I also made use of NoBroker's Loan Eligibility checker to keep a check on how much loan I could get in future. You can check it out too. [widget_emi_calci]