Most of us have taken or will take loans. One of the loans taken is Home Loan. Debt always gets us into tricky situations. Paying the Equated Monthly Installments (EMI) is arduous. We have to clear debt at the earliest. However, interest rates are always rising! How can you as a home loan borrower reduce this burden?
Nine Steps to Home Loan Borrowers To Reduce The Interest Rate:
1. Influence and Amend Your Credit Score:
A good credit score is a must for any loan. If you don’t have a good credit score, the bank can deny the loan and you will be left without any loan for building your house(House Loan). Even if the bank or financial institution gives you the loan, they won’t give you attractive prices and interest rates. [Get Personalized Advice For Home Loan –Visit]
2. Bargain With Your Banker/Official Representative:
If you have ever visited open markets, you will often find customers bargaining with vegetable and fruit vendors, flower sellers, shopkeepers and so on for lesser rates. You can do the same. Ask to lessen the price or defer processing fees. [Get Personalized Advice For Fixed Deposits –Visit]
3. Boost The Down Payment:
Now before you give that famous horrified expression of Macaulay Culkin, the boy from Home Alone; listen! Making a high down payment at first will diminish the burden of a heavy EMI value!
4. Additional Payments:
Imitating Macaulay Culkin’s famous terrified look again is of no good. Listen first! Reducing the interest component, you can pay off some of the loans from your yearly bonus. The more you repay, the less you will have to repay.
5. Borrow For A Shorter Duration:
A shorter home loan makes sure that your principal amount gets repaid earlier. The rate of interest is calculated on the principle, so the absolute interest pay-out reduces once the principal amount is recovered by the bank.
6. EMI Goals:
Have a target that you should pay an extra EMI each year so that you can clear everything much before you anticipated. [Get Personalized Advice For EMI –Visit]
If the housing loan interest rate of another lender is lower than the one being offered by your present lender, go for it but not before verifying the legal fee and pre-penalty fee, etc [Get Personalized Advice For Housing Loan –Visit]
8. Your Spouse Also Needs To Work:
This is a no-brainer. If your spouse also earns sufficient income, both of you can pool together your money and pay off the EMI.
9. Sell What You Don’t Need:
Let’s say you own two cars. Sell one and use that money as an investment that will help you deal with EMI of home loan.
For more information visit www.moneymindz.com or give a missed call to 022-62116588