2014 will be a milestone year for me. I am planning to be finally debt-free by the end of 2014.
My outstanding HDB housing loan will dip below $100K in 2014, making it impossible for further re-financing with the bank.
I have done a loan re-financing in 2012, with 2 years locked-in period. It was not a bad deal as the interest rates were 1+% for the first year, 2+% for the second year and 3+% for the third year.
I am planning to pay off the remaining HDB loan by the combination of the followings:
1. Matured endowment policy
– Luckily I have one 21-years endowment policy maturing in mid-2014. Time really flies and 20 years have already gone by since the day I started contributing to that endowment.
2. Housing loan “pay-up fund”
– I have started this fund after the last re-financing, contributing a fixed sum every month into it.