Second Milestone Reached: Closed my 30-year home loan in just 3 years
Hi All,
Around a year ago, I shared my first milestone of reaching 50 lakhs in investments. Today, I’m happy to share my second milestone.
I have completely closed my home loan of 63 lakhs, which I took in August 2023 for 30 years. The loan was closed on 6th October 2026.
A little background:
In 2023, we purchased our first home and took a loan of around 63 lakhs at 8.75% interest. The initial EMI was around 50k per month.
Initially, I was planning to continue my SIPs along with the home loan, but gradually I started prioritising loan prepayments.
The main reason was job security. I had lost my job once in the past, and that experience made me realise how important it is to have fewer financial obligations.
I know that investing in equity mutual funds could potentially generate better returns than the interest saved on a home loan. But I wanted to reach a point where even if I lost my job, I wouldn’t have to worry about paying an EMI every month.
Over the last 3 years, I used most of my surplus income for prepayments. I also used the maturity amount from an old investment to reduce the principal. In the final year, I temporarily stopped my SIPs to focus on closing the loan.
The total interest I paid over these 3 years was around 11.45 lakhs.
There were times when I questioned my decision, especially when the stock market corrected and I didn’t have enough surplus to invest.
But now that the loan is closed, I feel it was worth it for us.
My next plan is to rebuild my emergency fund and resume my SIPs. With no EMI, I should be able to invest more consistently going forward.
I understand that closing a home loan early may not be the best decision mathematically, but for me, reducing financial stress was more important.
Just wanted to share this milestone with the community.
For those who have closed their home loans early, would you make the same decision again?