Wise ways to Save on Home-Loan Repayment Amount

Dev Singhraha

Relocation Expert

Home loan is a necessary move to buy a house. It acts as an alternate source of money while keeping your other financial resources intact and also a crucial medium to avail tax benefits. But all of these come with a cost which is referred as interest rate which the borrower has to pay along with the principal amount for a fixed period of time. The loan amount is paid back through monthly instalment (EMI) that is calculated on the basis of loan amount and tenure of the loan. The EMI goes from your monthly income but you can save on this cost and use it elsewhere, such as you can invest that amount somewhere else or use it in doing the interiors.

So here are some options through which you reduce your cost of availing home loan.

Prepayment

While applying for a home loan, do enquire about the prepayment option that the banks and financial institutions offer to their borrowers. But this option might come with certain terms and conditions, so you as a borrower must be aware of those conditions or any financial institution attached to it. The prepayment option gives you the flexibility to repay the loan amount as well as the interest applied to the loan whenever possible for you.

Negotiating the interest rate

Lenders usually have varying interest rates based on the borrower’s profile and the loan amount. This means that you can negotiate the rate of interest offered to you by the lender. For instance, if the lending institution is offering the loan at an interest rate of 8.4 percent then you can negotiate for the lowest available rate and get the approval. The difference in the interest rate can make you save a loan in the long run.

Balance transfer option

In today’s competitive market banks and housing finance companies compete with each other to provide attractive benefits to their borrowers. And balance transfer is among one of them. A balance transfer is a flexible option for an individual to transfer the balance loan amount from one lender to another whosoever offers a lower rate of interest and better services. This option helps you to reduce your EMI and save more.

Miscellaneous charges

Home loan comprises of some hidden charges that a borrower should know about. Usually, borrowers come to know about such charges when they have to pay them. So you should always inquire about the break-up of the EMI that you need to pay. If there are some add-on charges apart from the interest amount then it is better to negotiate or find other option to avoid the additional charges.

Looking for property portal?

Find a property Post property

How to Get the Best Mortgage Plan?

With the recent boost in the real estate market, many first time home buyers must be planning to invest in a real estate property. But many of you must be having wary feels about the mortgage plans. In order to make you feel more confident, here a...

Nov 15, 2016
Looking For a Rented Accomodation? Here Is What You Need To Know

Renting is not a simple process; it requires thorough research and questioning. It is highly important to make sure of a number of things before one finalises on a house that he or she would want to rent. This helps in avoiding future tiffs between t...

Jul 01, 2016
Have you Ever Thought What Would Happen if Anyone Gets Caught in a Loan Trap?

We have come across many people known to us who have taken a loan and thereafter, the income source from where this loan must be repaid gets dried up.And to overcome this situation one applies for a personal loan to repay the previous loan and the pr...

May 25, 2017
Points to Remember While Taking a Home Loan from NBFC

Getting a home loan is not a child’s play, especially the way it is usually portrayed in advertisements. Not only is it a time consuming affair but you are also expected to be ready with piles of documents to prove that you can be trusted with a lo...

Jul 14, 2017