Want to Pay Less Interest on Your Home Loan? Follow These 3 Tips!
For any individual, purchasing a house is one of the most important financial decisions of a lifetime. Hence, it is advised to opt for the best home loan interest rates in the market to make repayment easier.There are several ways by which you can get the best home loan interest rates on your home loans, such as opting for a shorter tenor, increasing your loan eligibility, balance transfer, etc.
Top 3 ways to avoid high-interest payments –
Higher Downpayment
While opting for a home loan, borrowers are required to pay a certain amount of the property value as a downpayment. Making a higher downpayment will help to reduce the principal component of the loan.
Hence, it will also lower the loan amount, which may reduce the rate of interest. It will also decrease the high-interest payments on the EMIs.
Home loan balance transfer
If you have an existing home loan, you can opt for a home loan transfer facility to shift your loan to a financial institution offering comparatively lower interest rates.
Part-prepayment facility
In the initial stages of a loan tenor, a large portion of EMIs is consumed by interest payments than the principal component. So, borrowers can part-prepay to decrease the gross principal of their payable home loan amount, which reduces the total interest applied to the borrowed sum.
So, financial experts advise borrowers to consider these top factors, to avoid high-interest payments and avail the best home loan interest rates
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