6. Know About Foreclosure Norms

Before taking home loan try to educate yourself about foreclosure norms of the bank. Usually foreclosure process as levied on residential mortgage loans from the banks if the owner of the borrower fails to fulfill to repay before the termination.

However, recently RBI has banned on foreclosure penalties, so before taking any step further make sure that you don’t pay anything extra while foreclosing your loan.

7. Save To Foreclose

Foreclosure of loan means closing the loan before the fixed period of time. For instance, if your bank has permitted you to repay the loan within 5 years and if you repay it before the end of the 5th year, it is called foreclosure of account.

So, if you have tried to save 1 lakh then do not spend it on a dream holiday. Instead use it to repay your home loan balance. The sooner you try to foreclose your loan the better monetary freedom you can enjoy.

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