Most of us have home loans. We keep paying EMIs regularly and wonder when this will get over. But for many of us, it is an endless task of paying EMIs.
Do you want to manage your EMIs better and close your home loan quicker? Then, this is what you ought to do. Moneymindz, India’s First Free Online Financial Advisory
1. Select appropriate home loan and tenure
Before getting a home loan, go and see the different options out there. Often, longer home loan tenures mean lower EMIs. This ensures that the borrower repays the loan with comfort but without stressing his/her finances too much. But a longer tenure also comes with a cost. You end up paying for the interest for a higher duration. Get Personalized Advice On Home Loan from Kuber Mindz or Give A Miss Call On 022-62116588
So keep in mind your age, income level, repayment capacity, job security, etc before going for a loan.
2. Raise your EMI amount over time
Many borrowers from the salaried class get an annual hike, so such people should increase their EMI amount simultaneously. Doing this every year will reduce your home loan tenure and your outstanding loan amount. Here, the extra you are paying will act as prepayment thus lowering your loan tenure. Moneymindz, India’s First Free On call Financial Advisory
3. Prepay whenever possible
Salary hikers, bonuses, extra interest from investments, tax savings, etc can be used to repay your loan and bring down your tenure. Banks aren’t authorized to charge prepayment/foreclosure penalty because of RBIs regulation. If you pay part by part, you can reduce your principal amount apart from saving the interest component over the loan tenure.
4. Home Loan Balance Transfer
A home Loan Balance Transfer is better if the existing lender’s competitors are offering lesser interest rate and terms of service or a home loan top-up request have been denied by the current lender or additional product features are being offered by other lenders. Since you would have paid a major part of your interest component during the earlier stages of the loan, a home loan balance transfer won’t lead to much savings if you opt for a higher tenure again. So keep the new tenure exactly the same as the remaining tenure of your current home loan.
Before going for a home loan balance transfer, compare how much savings the transfer will result in with the cost of transfer disguised as processing fees and charges. You ought to go for Home Loan Balance Transfer only when you can save a notable amount over time through it.
These are just four ways you can manage your EMIs better and reduce Home Loan. For more information visit www.moneymindz.com or give a missed call to 022-62116588