Walk a year, still strong. Walk two years, can still stand. Three-year walk, it’s getting heavy. I don’t know how it will be when he enters the fourth year, can he still or not? That’s about the picture of having a home loan.
Just so you know. Having a home loan is not a simple matter, you know. Just submitting it is already struggling. Likewise when paying, each month must allocate a budget for paying installments. It’s been paid off more than 10 years, even up to 20 more years.
So not a few people feel that this home loan is a burden on the mind. The problem is the increase in installments influenced by fluctuating interest rates can increase the amount of installments themselves.
Hopefully when home mortgage interest rises, monthly salaries also go up and can compensate. What if the salary does not increase? Isn’t it dizzy?
This is why many who want their house loans quickly paid off. Well, about how do I get this credit done quickly? Let’s find out in the following review.
1. Reducing the remaining principal of the home loan
Because the bank applies the annuity interest calculation in the home loan calculation, the lion’s share of the installments you paid at the beginning are allocated to pay interest.
For information, the calculation of an annuity interest is a credit calculation in which the composition of the loan principal payment and interest is modified according to the time period of the installment payment. After a certain period, then you pay the principal debt bigger.
Of course the amount of interest you pay depends on the amount of the loan you get from the bank. This is why it is important to reduce the remaining principal debt so that the credit installments paid are lighter than before.
It’s true there is a penalty fee of 1 percent-2 percent that applies once you reduce the remaining principal debt. However, reducing the remaining principal debt plus paying penalties is still better than paying credit which could one day increase in size.
2. Take over credit
This method can also be a solution for you so that the mortgage payments paid are not very large. The trick, move the current credit by applying for take over credit at another bank.
In essence, by taking over, you have moved credit from one bank to another. Take-over interest is clearly offered cheaper than the current lending interest you are still paying.
The process for applying for take over credit is more or less the same as applying for a mortgage. You are required to have a steady income, a minimum of 2 years of work, provide a photocopy of the account for the last three months, a photocopy of NPWP, up to personal income tax return 21.
The time needed for the bank to process the take over loan application is also more or less the same as processing the mortgage application, which is for one month.
So that this take over is not in vain, there are some things you need to pay attention to. First, you must pay a fine as a condition to take over. The amount is between 2-5 percent of the remaining loan.
Second, you will be charged the same costs as the fees that apply when taking care of the KPR such as administrative fees, provision fees, to the notary fees.
3. Reducing the remaining principal loan while taking over
In order to make installments smaller, you can do both of the above methods at once, which is to reduce the remaining principal and also take over.
If you take this option, the first thing you have to do is reduce the remaining loan principal. After some time paying the installments with new credit, take over as the next step for compressing credit installments.
Surely doing the two methods above is not as easy as imagined, especially about the provision of funds. The funds you have play a role so that the two ways above can be done smoothly.
Prepare funds to pay off home loans with investments
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As mentioned above, the availability of funds plays an important role in paying off home loans. Besides, if there are more funds, why pay long installments. Hopefully the funds can be directly paid off credit. Can escape from the burden of debt.
So that funds are quickly collected, prepare it not by saving, but by investing. Because the return obtained from investment is greater than saving.
For information, investing funds by buying shares can give a return of 20.63 percent for three years. Greater than you save in savings? You can also get big profits if you invest in mutual funds.
So, instead of being saved in savings, it’s better to be saved in the form of shares or mutual funds!