Are you paying a higher home loan EMIs affecting your outlays?
A home loan is a long-term obligation that helps a considerable amount to buy or build a new home.
But if you are managing higher housing loan EMI, you don’t have to worry. It is because it is possible to reduce home loan EMI by following a few tips.
Read on this quick post!
Go for a higher down payment
When you apply for home loans, you will not get the entire value of your new home as the loan amount. The maximum you can get is 75-80%. The rest has to be arranged on your own and known as the down payment amount. Hence, if you put down more than the regular amount, you will need to borrow less. A lower borrowing amount means you can reduce home loan EMIs considerably.
Make regular part prepayments
If you already have an active home loan account, you can still reduce home loan EMI. It is by making time-to-time part prepayments. You should do that during your initial loan tenor so that you can pay off a large interest amount. Before doing that, you should check if your lender charges any amount for making part prepayments.
Opt for a home loan balance transfer
If you see a really good offer from a lender providing you with a lower rate of interest, you should switch your loan account to it. This facility is known as the home loan balance transfer. This way, you can bring down your EMI amount and also save on interest charges.
Other than these tips, you can also go for Pradhan Mantri Awas Yojana (PMAY) if you are buying or building your first-ever pucca home.
It can help you pay reduced EMIs because you can get an interest subsidy on home loans up to Rs.2.67 lakh as per your eligibility.
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