Rising interest rates? Effective ways to pay off your home loan quickly

Repo rates

HDFC Bank has been continously raising its repo rate linked home loan interest rates since January of this year. As the name implies, repo rate-linked home loan rates are supposed to adjust in line with changes in the repo rate. Here are some effective approaches you can use to pay off debt at an earlier stage in life.

Make larger initial payment

So, with this you can decrease the total loan amount you need to borrrow initially, leading to reduced interest payments over the loans duration.

Choose shorter loan term

Choosing a 15-year loan over a 30-year loan will necessitate higher montly payments, but youll pay off the loan more quickly and save on interest in the long term.

Avoid taking new debt

Refrain from taking on additional debt while repaying your home loan.

Review your budget regularly

Assess your budget and identify areas where you can reduce expenses. Redirect these additional funds towards your home loan to expedite the repayment process.

Opt for bi-weekly payments

Some lenders permit bi-weekly payments. This boosts the number of payments you make annually, effectively expediting the repayment process.