Welcome to Reader’s Query segment of FE Money. Many borrowers have two home loans but they are often not sure which home loan should they close first. One such borrower is Yatin.
Last week, Yatin shared with us that he is 37 years old and has two home loans in his name. He took his first home loan of Rs 50 lakh in 2016, out of which the current outstanding is Rs 39.87 lakh. Yatin took another home loan of Rs 30 lakh in 2022, of which Rs 29.9 lakh is currently outstanding.
Gaurav Mohta, Chief Marketing Officer of HomeFirst Finance answers Yatin’s query:
Looking at your outstanding loan amounts, your payoffs will depend mainly on three things:
- Your ROI of the loan. Clear the one for which you are paying a higher interest.
- Stick with the loan provider, that gives you better service. Any dealings will be relatively more straightforward that way.
- From the question, it is not very clear, whether your properties are still under construction or in a ready-to-move-in stage. If you have a choice, you can pay.
Prepay small amounts to close home loan fast
Experts say that with a well-planned strategy, it is possible to accelerate your home loan repayment. One of the easiest ways to do that is by paying a little more than your EMI every month. Alternatively, you can accumulate funds through FDs, RDs, SIPs etc. for repayment in a lump sum. This article explains various options borrowers can explore for home loan repayment.
Readers may also benefit from the following articles where experts have answered some important questions asked by borrowers.
- My salary jumped 40% after job change. Should I increase SIP or prepay Home Loan first?
- I am paying EMI for a Rs 30 lakh home loan. Will I be liable to pay tax after selling the flat?
- My Provident Fund account balance is Rs 14 lakh. Should I withdraw it to pay home loan?
Have any home loan, property or other personal finance-related queries? Write to email@example.com. We will get relevant queries answered by personal finance experts.
Disclaimer: Views and suggestions mentioned above are those of the respective experts/commentators. They do not reflect the views of vpfinancialnest.com.