There is no greater joy than having a roof overhead that you can call your own home. You have worked hard to save for your down payment and putting your papers in order to get your home loan sanctioned. But the fact is that your test has only begun, for you will be servicing your mortgage for a good number of years now and that is indeed a huge responsibility. In order to service your home loan, along with your other loans well, you must indeed think and act like a fund manager. Here are some tips that will help you in prudent money management:
Find ways to maximize your benefits
When you have a home loan to service, the first thing to do is to list out all your savings and investments. Scrutinize all your investments carefully to find out investment instruments giving lesser returns than the interest rate on your home loan. Endowment insurance plans, ULIPs and postal deposits may be examples of such investments. It will be wise to close most of such investments and divert the funds towards servicing your home loan. You should ensure that your long term savings are undisturbed.
Ways in which you can repay your debt quickly
A home loan is a debt like any other and the sooner it is closed the better it will be for you. Here are three ways to reduce your debt burden: