A home loan helps you buy your dream home. You can repay your loan in IME (easy monthly installments). Before applying for a home loan , compare their interest rates, EMIs and seniority.
Contents1. Early repayment of the home loan2. Search and compare rates3. Use the PMAY scheme 4. Mortgage loan balance transfers5. Pay more on your depositMost people choose a home loan with the longest term because it reduces their financial stress. Taking a long-term loan means you pay smaller EMIs each month. However, this also means that you pay more interest than if you had chosen a shorter term.
Discover 5 easy ways to save money by reducing mortgage interest rates.
Prepayment involves repaying the loan as soon as possible or before the end of the loan term. Repaying loans early has many advantages. For one thing, it reduces the interest you pay. Shorter tenure means lower interest. If you repay the loan quickly, you will only spend a small amount on interest. This is the easiest way to reduce mortgage interest rates in India.
A simple Google search will help you find current home loan interest rates . Banks charge different interest rates on home loans. The interest also depends on your credit score, employment status, existing loans and the bank you choose. Check with the various banks that offer the lowest home loan interest rates and flexible repayment plans.
The Pradhan Mantri Awas Yojana is for first time home buyers building a pucca lodge. If you apply for a home loan through PMAY, you will get a grant of up to Rs.2.67 lakhs.
The subsidy makes home loans an even more affordable financing option.
If you are unhappy with current home loan interest rates and repayment plans, you can switch lenders.
Switching lenders is the best way to save money on interest and other fees. Once your balance transfer request is approved, the new lender will repay your loan to the existing lender. You will now have to pay the new lender, following their repayment terms. By transferring the outstanding amount to another bank, you can reduce the total interest payable and lower the monthly payments.
Banks pay 75-90% of the total cost of your home to the seller. You must pay the remaining amount, called the “down payment”. It can be 10-25%. It depends on the bank and how much you can afford. It's not necessary to increase the down payment, but paying more means you can lower the interest rates on your home loan.
