Pay Home Loan or Keep as Savings/investment
I have home loan of 10.23 Lakh and I have Savings of 9.5 lakhs if I do savings for 2,3 months more I will be able to pay off my home loan This is the only home we have as my father had bought this home with loan 10 years back. The Total tenure of home loan is 20 years and will end in 2034 so shall I foreclose this loan or keep this savings as investment?
Get it over with. The relief of not having debt is more than the 2% gains you'll make in MF investments esp now that markets are edging higher
Thank you...
Be more pragmatic about it. Burning total savings for loan is not a smart idea with current uncertainty around everything. Rather pay around 30-50% of your loan. With repo rate on decline, your ROI would come down and with smaller principle component the interest would largely saved. Pay 50% now and save other 50% for next year ( or even every 2 month prepayment might also be good) Have enough savings for support yourself for atleast 6 months.
