A home loan facility helps you get a large amount as per your eligibility.
Since a housing loan is secured, it comes at a lower rate. But repaying over a longer tenor may increase your interest charges.
If you wish to avail yourself of the lowest home loan interest charges, this short post will help you know more! Read on!
Go for a shorter tenor
Opting for a smaller tenor means that you have to pay the higher home loan EMIs. But it will also help you to repay reduced home loan interest charges.
Make prepayments
During the tenor, you can also make some prepayments to bring down the outstanding amount. Once done, the home loan interest charges will also reduce. It will help you to repay lower home loan EMIs.
Shop around
You should compare all available home loan offers of lenders. You should choose the best one matching your needs and repayment budget. The facility could be availed on a third-party website for free.
Pay more as the down payment
A lender will not sanction the entire cost of your new home as a loan. You have to manage 15-20% on your own. It is known as the down payment. The higher you pay; the lower will be your borrowable amount. In turn, you have to manage lower home loan rates and EMIs. You can always use the home loan EMI calculator and know an amount you will pay over a tenor. It will ensure that you can indulge in proper financial planning.
Opt for a home loan balance transfer
Existing borrowers looking to reduce their home loan interest outgo can switch their loans to a lender offering a reduced rate. It is known as the home loan balance transfer. You can also enjoy a top up loan with a significant amount, restrictions free usage, reduced interest and tenor like your ongoing loan.
You can consider one of the tips and lower down your payable home loan interest charges and save.
