You must always remember that your home is your liability unless you settle your loan. No matter how your financial planner tells you, no matter your home has appreciated how much since you bought it many years ago, it is still your liability if your home can not make any money for you every month.
I think there are a few ways for you to settle your home loan fast, always use these techniques and becomes a free man like me in 5 years time,
1) Choose the best rate Always do your survey and choose the best rate in town, never underestimate the power of even 0.5% of difference. A lot of home buyers are attracted to all kinds of promotion the bankers are offering. Never take a higher percentage home loan because you are attracted to the gift they are offering to you even though the interest is only 0.01% higher!
2) Choose a package that the interest is calculated on daily basis. You will be surprised how much you can save in interest if you chose a daily interest home loan package rather than a monthly interest package. You immediately save on interest every time you pay extra.
3) Make a habit to pay extra Do not think that you extra 50 bucks will not make a difference. It makes a difference and save you a lot of money even you pay 50 bucks extra every month. Make a habit to pay extra every month
4) Use your bonus to pay extra Yes, you are going to get a month bonus during this coming Christmas, do not spend your bonus, save 1-2 thousand and pay a lump sum to your home loan account!
5) Never Refinance your house Never, ever refinance your house unless you have a good reason to do so. You will think that you can get fast money from that and trust me, you will never settle your home loan by doing so!
Hope you find these tips useful, visit www.investing-tip.com for more interesting articles!
About the Author
Hnery Goh is a practising doctor by profession but has a strong interest in internet and web site design.
