The term to pay installment of house in the loan agreement is not over 35 years or end when borrower’s age not over 65 years, considered as the very long time in the life. It’s absolute that having a big debt isn’t good thing because it will make borrowers lost the opportunity to take money to invest. So, TerraBKK is going to tell you about how to clear installment payment quicker than term in agreement.
As long as it’s called loan, it must come with interest that you have to pay. To clear installment payment of house is repay all debt as fast as you can. Taking a lump sum to repay the debt over the amount you have to pay in each month is the thing that we’re already known but what should you do to make it most effective? Let’s find out.
Select the short-term loan Generally, banks will lend not over 35 years but if you have power enough to pay monthly installment in large amount, you shouldn’t select the longest term.
Fast start, Fast end Banks tend to provide special interest rate, some banks may provide 0% of interest up to 2 years that is the golden period to speed up your repayment. If it’s possible, you should pay installment 1.5x of normal monthly installment. When promotion such as 0% of interest up to 2 years ended, it equals you have paid in the amount of 3 years.
Pay more in each month Calculation of rate of monthly installment, banks tend to estimate about 30% of salary but if you can pay over such amount slightly, it will help you clear out installment quicker.
Refinance after you have been pay installment for 3 years or over. When there’re other loans which have better offer and more interesting, Refinancing is good answer. See more detail of refinancing in Reduce Your Debt Burden by Refinancing.Reduce Your Debt Burden by Refinancing
For refinancing, you can select installment rate per month which higher than old rate or same rate but lower interest rate or shorter term as well.
If you clear out installment quickly, you will have some money to invest and make profit. Thing that help you repay installment effectively is your financial discipline and encouragement. Talk to yourself always that, ”there’s the end of debt and when installment is cleared, the house will be mine”

บทความโดย : TerraBKK.com