The process to compare different lenders and opting for the lowest interest rates is inevitably the modus operandi of most borrowers while availing a home loan. In order to help prospective borrowers out, most financial institutions offer a home loan EMI calculator where one can check the EMI payable beforehand and check if the same matches his/her repayment capacity.
In case you think that the Equated Monthly Instalments will put severe stress on your budget, consider following the below-mentioned options to reduce your EMI.
Negotiate home loan interest rates: Since this factor directly impacts your loan EMI, it is important to negotiate and choose the right interest rate to facilitate easy repayment. In this case, borrowers availing the loan on floating interest rates automatically benefit from the reduction in market rates.
Opt for a longer loan tenor: Even though opting for a lengthy tenor increases your total interest outgo, it also reduces the home loan EMI. It is wise to make use of the online home loan EMI calculator to find a suitable loan tenor that makes your repayment process convenient.
Pay more as a down payment: Consider making a hefty down payment as it can reduce the amount availed as loan, and consequently the EMI as well. Also, paying a higher amount as a down payment not only reduces your EMI but also ensures fast approval.
Choose home loan balance transfer: In the case of existing borrowers, a home loan balance transfer is a great way to reduce your monthly financial burden. Find out which lending institution is offering the lowest interest rate at that moment and transfer your loan.
Both the rate of interest and loan tenor play significant roles in home loan EMI reduction; therefore, it is wise to pay attention to the factors associated with them. Consider comparing different deals offered by financial institutions and use the home loan EMI calculator to plan your repayment at the very onset.
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