Do you want to apply for a home loan or have an active loan account, and want to reduce your housing loan interest rate?
If yes, you can do that after following a few handy tips.
Thus, without further ado, let’s know more in this quick post!
Go for a smaller loan tenor
The longer is your loan tenor, the lower will be the EMI amount but your interest rate charges will increase. On the other hand, a smaller loan tenor means paying a large EMI amount but reduced housing loan interest rate charges.
Make prepayments
If you can make some prepayments during your home loan tenor, then it will reduce the principal amount. In turn, it will lead to lower housing loan interest rate charges. But you should also check if your lender charges any amount for making prepayments.
Compare all deals
Before opting for a home loan, you should compare all offers online and pick one that best matches your needs and repayment capacity. This facility is available on a third party platform for free.
Make a large down payment
You should also try to make a significant down payment to reduce your overall borrowable amount and pay decreased EMIs. For example, your lender may allow you to make a down payment of 15-20%. And you should aim to increase it.
Go for a home loan balance transfer
If you avail of a home loan and find your lender charging a higher interest amount, you can switch the loan to another creditor offering a lower interest rate. This way, you can pay lower EMIs and even manage a top-up loan for diverse needs at lower charges.
Implementing these five tips can help you to reduce your housing loan interest rate and manage lower EMIs.
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