5 Fast Ways to Pay Off an Effective Mortgage

When buying a house on credit, the process of paying it off is a long journey that is quite tiring.

From the beginning of the submission mortgage it just takes a long time, not to mention the installments that continue to run with tenors of up to tens of years.

Of course, when paying off a mortgage, there are times when you feel uneasy because you owe it for a long period of time.

Especially when interest starts to fluctuate, paying installments will feel even more difficult.

That is the reason why many people want to immediately pay off their mortgage, especially if they have additional income.

If you are one of them, here’s a quick way to pay off a mortgage effectively that you can try!

Advantages of Accelerated Mortgage Repayment

Advantages of Accelerated Mortgage Repayment

If you pay off your mortgage quickly, the benefit you get is that the debt burden is reduced.

That way, the heart will feel calmer and the financial burden will be lighter.

With the end of your mortgage debt, it means you don’t have to pay installments every month and the funds can be allocated for other purposes.

How to Quickly Pay Off a Mortgage

Reduce the Remaining Mortgage Principal

Reduce the Remaining Mortgage Principal

The quick way to pay off a mortgage is to reduce the remaining principal. This can be done by doubling your savings.

If you usually set aside a third of your income to pay home mortgagethis time try to set aside two-thirds of the salary to reduce the remaining principal.

You can also use the system auto debet, so that the installment money does not run away.

To reduce the remaining principal of the mortgage, you can also save funds to the bank where you apply for a mortgage.

So if at any time the bank offers a mortgage interest promotion, you are ready because the savings are sufficient.

Read also:

7 List of Cheap Mortgage Interest Provider Banks

Learn about mortgage interest rates

Learn about mortgage interest rates

As you know, while doing mortgage applicationof course there is an interest rate that must be paid.

There are two types of interest rates, namely fixed (fixed) and floating (floating).

The fixed interest rate has a fixed value for the duration of the current loan period, while the floating interest rate changes in value according to Bank Indonesia’s interest rate regulations.

When you want to apply for a mortgage, you should have learned about mortgage interest rate.

Look for mortgage products with low and fixed interest, but have a long installment period.

Do Take Over to Islamic Bank

Doing Take Over to a Sharia Bank

The next quick way to pay off the next mortgage, is to switch conventional mortgages with interest rates floating to Islamic banks.

Islamic banks apply a murabahah or buying and selling system, so that the nominal installment fees will turn into interest fixed.

That way, you can reduce the new installment nominal while enjoying interest offers fixed forever.

Prepare Additional Funds

It should be noted that the mortgage repayment period has been determined since the beginning of the credit agreement. This is actually agreed upon by the bank and the debtor.

Therefore, if it turns out that the customer intends to accelerate the repayment of the mortgage, the bank will give a penalty that must be paid.

The amount of the penalty also depends on the calculations and bank provisions.

The sooner the mortgage is repaid, the greater the penalty because the principal of the mortgage debt is still of high value.

Therefore, you must prepare additional funds to pay the fines given by the bank.

In general, the fines that will be imposed by banks range from 1-3% of the amount of payment made.

The difference in the amount of the fine can also be seen from the time the installment is in the interest period fixed or floating.

Invest Credit Repayment Fund

Invest Credit Repayment Fund

The next quick way to pay off a mortgage, is to invest funds to pay off a home loan.

You can invest these funds to get a bigger return, rather than just saving it.

However, before investing, you should do it first review budget for screening expenses and other needs.

After everything is determined, then calculate the funds that you can set aside to pay mortgage installments.

Those are some quick ways to pay off an effective mortgage.

If you are looking for a house for sale and want to apply for a mortgage, 99.co Indonesia has housing options to look at, such as:

Hope it is useful!

Read also:

Easy Tips to Pass the Mortgage Process

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