Making regular loan payments have become difficult for many people because the Covid-19-induced shutdown hurt financial flows. This problem gets even more difficult for those who have taken out housing loans with high EMIs. If you're an applicant seeking strategies to make your home loans easier to manage by lowering your EMI payments, consider the suggestions below.
Compare rates online- Browsing is one of the best ways for house loan borrowers to compare home loan offers. Several websites and online portals summarize the current home loan interest rates, fees, and other costs charged by various lenders.
Go for a longer repayment tenure- You should only choose longer loan payback terms if you believe you will not afford higher home loan EMIs. Before taking out a home loan, you should carefully analyse the term and interest rate alternatives accessible to you. You can use ET Wealth's house loan EMI calculator for this.
Try to make a bigger down payment- It is advisable to pay a bigger down payment to lower the expense of EMIs as no lender will provide you with a loan for more than 80-90% of the property value. However, the remaining 10-20% will be required as a down payment on a home loan. So once you've made a 20% down payment, you'll just have to worry about paying interest on the remaining 80% of the home's worth.
Negotiate the service terms with the existing lender- You can negotiate the service terms of the home loan if you have an amicable relationship with your current lender. This might help reduce interest rates on your loan amount.
Make prepayments from time to time- If you receive a yearly bonus, incentive, or other forms of additional income, you can use a portion of it for home loan prepayment. In this way, you'll be able to cut your home loan EMI and term by a few months or years.
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