Feb 03, 2020

An effective guide to Reduce Interest Rate on Your Home Loans

By Admin

Investing in the home are actually assets that last a lifetime. Its significance in reviewing your home loan regularly to ensure you always have the lowest rate possible. To get the best deal, you can follow the steps below to reduce the interest rate on your homes loans.

Improve your credit score

On the market, there is no lender who doesn’t love a good borrower, the one who will repay the loan pleasing all pre-determined terms and conditions. A lender can conclude the value of any borrower by looking at his/her credit scores. A fine credit score can be your avenue to better interest rates and more favourable terms on the loan. 

Balance transfer

The home loan balance transfer is an alternative by which your terrific loan balance is transferred to another lender at a lesser rate of interest. There is a little payment charged on the balance transfer (often a proportion of the outstanding loan amount). So, it is superior to conduct a cost-benefit analysis before taking this option.

Increase the EMIs

Increasing EMIs is another simple trick that works great to reduce your overall rate of interest for a property like mahagun meadows sector 150 Noida. As your salary increases every year, so should your EMI. You would have paid a lesser amount as interest through the term of your loan if you increase a small amount of EMI every year by 5% or 10%. A huge chunk of the EMI goes towards interest payment, as home loans have long tenures. If financial situations allow you, then being debt-free earlier is always better!

Play the loyalty card

Utilize your loyalty card as a bargaining chip if you must. Many borrowers stay with the same lender for years, and if you have a good record with them, it can help when it comes to negotiating a lower rate. Prior to asking for a lower interest rate in mahagun meadows sector 150 Noida, review your position and check that you have been making your repayments on time and that your loan to value ratio has gradually been getting lower. By this, you now have a current timeline of your loyalty and proof of being a reliable customer. This can be very helpful.