Owing to several reasons, borrowers often struggle with their home loan repayment. In such scenarios, taking measures to decrease the home loan EMI is a sensible idea. Borrowers can use the EMI calculator for a housing loan available online to get a better understanding of what EMI they can afford according to their current financial situation.
Apart from that here are some tips for homeowners looking to reduce their home loan EMIs.
Part-payment: Apart prepayment directly reduces the outstanding principal. As your total outstanding debt is reduced, you can choose to either reduce the tenor or the EMIs or both, depending on the total repayment made. While calculating the financial benefits, make sure to consider the part prepayment charges as applicable.
Extending the tenor: Extending the tenor always reduces your EMI. You can take the help of an EMI calculator for a home loan available online to check how long you have to extend your tenor to fit the EMI amount you can afford. But also consider the additional interest payment you will be liable with the extended tenor as a part of the repayment.
Balance transfer: This is a convenient and easy way to reduce your home loan EMIs. You can transfer your existing debt from one lender to another and benefit from better terms via a balance transfer. However, you must check the charges for loan balance transfer service while calculating the financial benefits.
Apart from these, you can always negotiate with your lenders for a more affordable interest.
