Reduce Home Loan EMI: To buy a house, you need to take a home loan. In such a situation, it is important that you also know about how to reduce home loan EMI. With this you can save a huge amount.
It is everyone’s dream to have their own house. But buying a home is also a huge financial burden for most people. This is the reason that the number of such people in India is very high, who need a home loan to buy a house. In such a situation, if you are taking a home loan for the first time, then you may have to face many challenges. Often people are confused about the decision of taking a home loan, whether to take a loan from a borrower? Apart from this, there should be many important information about loan terms, tenure, amount etc.
Home loan repayment is not possible for an individual in one go. That is why a monthly installment (EMI) of the home loan is fixed so that the financial burden does not come on the home buyer and they can repay the loan easily. But there are very few people who know that they can reduce the EMI of their loan for the loan. In such a situation, if you have also taken a loan and want the EMI to be reduced, then do not worry. We are telling you about this.
How to reduce home loan EMI?
1. Loan-to-Value (LTV) Ratio: The LTV of the home loan means what proportion of the total value of the property is being financed through the loan. A lower LTV means that your home loan amount will also go down and thus you will have to pay lower EMIs. That is why it is advisable to avoid low down payment while taking a loan. Pay as much down payment as possible.
2. Long Duration: Home loan is a long term financial commitment. The longer the tenure of the loan, the lesser will be the EMI burden. But you also have to keep in mind that less EMI has to be paid in the long term, but the interest payment also increases. Contrary to this, the EMI burden is higher on short term loans but the interest payable is less. Experts say that choosing a long-term loan increases the chances of getting the loan application approved. This is because EMI is economical for the creditor.
3. Compare Interest Rates Before Taking Loan: Compare the interest rates offered by various banks and HFCs before choosing any borrower to avail a home loan. In today’s time, there are many such websites, where you can easily compare the interest rates. In such a situation, it is important that you do a good research before taking a loan so that you can get the loan at the most economical rate.
4. Bargain Interest: Generally, most of the borrowers keep the interest rates in the minimum and maximum range. The actual rate of interest depends on various qualifications. If the creditors have the bargaining power, they can get a home loan at a lower rate of interest. Many times when two people apply for a home loan together, the income source of both the person is looked at. On this basis also the interest rate is decided.
5. Take Loan Together With Spouse: In general, interest rates are lower for female creditors. That is why it is advisable that the wife and husband take a home loan together. Even after taking a loan, you should keep an eye on the interest rate.
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