Points to Take Note in Prepaying for a Home Loan

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Preparing yourself, your expenses and budget as you get a house loan is not at all easy— but no one said it will be that hard for you not to do it.

Basically, it is everyone’s joy to finally buy a house of their own. What comes sad is not being able to afford it. That’s why the option they have is to get a house loan.

Getting a house loan means getting a full house with a sum of money borrowed from a financial company of bank. A house loan is consist of an adjustable or fixed interest rate and payment terms. Depending on the type of agreement or loan you have undertaken. For more information, you can visit website  https://onqfinancial.com/ https://onqfinancial.com/

However, this blog today will talk about the ways and guide in pre-paying a house loan you have taken. Let’s check this out!

Should You Repay?

Oftentimes you ask yourself, should you repay your house loan? And more often than not you always leave yourself hanging at the thought of it. Is it really worth it to repay it? Or just leave it as it is.

But imagine owning a house that is debt-free. Imagine resting in your sofa knwoing you can sleep the whole day long that you are not paying for it as a debt anymore? That’s someting really emotionally fulfilling for some— especially if the house is self occupied.

With that, if you have finally paid for your house you can then do whatever business you want to do with it. Sell half of it, make it for rent or lease and even earn bigger income or omoney through it. Or just simply live with the fact that you are now debt-free with your house.

It is definitely emerging from a stressful period. So if you are going to ask yourself again that question, it is time that you finally answer yourself— YES! You are going to repay your loan.

Tax Benefits of Home Loans

This is where the good news is coming, when you are repaying your house loans you are actually getting tax benefits from it.

If the house is self-occupied the interest componenet paid during a financial year can be deducted under section 24 up to a maximum of RS 2 lakhs. For a person failing under the highest tax bracket, there will be an addition deduction up to Rs 60,000 in a year.

While for first time home buyers, there will be an additional deduction of up to Rs 50,000 under section 80EE.

Final Thoughts

Now that you finally know some points to take note off when repaying a house loan it is time that you finally take action in doing it. Repaying your house loan does not just mean getting away with your debts, but it is somehow losing ties with your responsibility of paying for it and enjoying the fruit of your hard work— your dream home.

For more information on house loans, you can visit website on https://onqfinancial.com.

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