September 24, 2022

5 Tips to reduce your home loan interest rate burden

It is everyone’s dream to buy their own home, but rising loan interest rates never allow this dream to come true. Every homeowner knows that the home loan interest rate is one of the most taxing commitments of life, and this is because the homeowner opts for the tenure of 15 to 20 years to pay off the loan. If for some reason, you forget or fail to pay your dues, then your home loan EMI goes up, and as a result, it harms your mental health.

If you are thinking of taking a Home Loan, ApnaPaisa this year, then follow these 5 Tips to reduce your home loan interest rate burden as we have mentioned, and these tips will bring you relief in an expeditious and episodic manner.

1.    Be considerate of your loan tenure

A borrower needs to be aware of various aspects of home loan tenure. If you opt for shorter home loan tenure, you will have to pay higher EMIs, and the advantage is that your home loan interest rate will come down. Still, it may impact your financial budget, and if you opt for longer home loan tenure, you are entitled to a lower rate of interest, but as a result, you will be required to pay for a longer period of time.

So, why not choose a home loan tenure that will neither affect your budget nor burden you with a higher interest rate. Use a home loan EMI calculator and know how much interest rate you are going to pay to the lender over this period. According to this, maximize the amount of home loan repayment as soon as the income increases, resulting in the EMI being higher. The tenure of the loan will also become shorter.

2.    Try to pay an extra amount other than EMI

Do you know that the amount of EMI you pay to the lender is in line with the interest amount on your home loan amount? If you make regular repayment, then the home loan interest rate will go down. Also, if you have received a bonus or have additional funds and you pay it towards your home loan principal payment, your floating home loan interest rate might get decreased, or you can contact the lender to re-negotiate.

3.    Have a higher credit score? Get better home loan Interest rates

Suppose you make regular home loan EMI payments and have a high credit score. As a result, you can write an application to the lender to get a relaxation on your current home loan interest rate. The lender has an authority to make amends to your home loan interest payment, and if your income increases, you can ask the lender to increase your loan amount, as a result of which you can pay off your loan amount faster.

4.    Opt for a home loan balance transfer

If your current lender provides a home loan at a high-interest rate, you can opt for a home loan balance transfer in this condition. A home loan balance transfer is a method, by which you can choose a new lender, and this new lender pays the balance amount and interest rate to your old lender and transfers the loan account to their institution. In such cases, a borrower has an option to renegotiate the charges and fees applicable on the loan.

5. Take a joint home loan

If you take out a joint home loan to pay for your home with your partner, you are both required to be eligible to claim the interest deduction under Section 24. As well as the premise for repayment of the principal amount of the loan under Section 80C, as long as you are both servicing the loan.

Final word

Whenever you decide to take a home loan, always keep in mind that the home loan should have a minimum interest rate. Therefore, choose a company that provides you with a home loan at the slightest interest. The best and easiest way is to go through research and compare different offers, and read all the terms and conditions carefully before ever signing any document that may result in inconvenience in the future.

Despite this, if you want to buy your dream home and reduce the home loan interest rate you can visit Apnapaisa. If you follow and make good use of the tips being provided to you, you can easily negotiate the terms and conditions of a loan.