There are various tips through which a person can have a low home loan interest rate, some of which are as follows:
Compare home loan Rates Online-
Browsing is an excellent way for house loan borrowers to compare home loan offers. Several websites and online portals summarise the interest rates, fees, and other costs charged by various lenders.
Go for a Longer Repayment Tenure-
The borrower should only choose longer loan payback terms if they believe that they will not be able to afford higher EMIs. Before taking out a home loan, the beneficiary should carefully analyze the terms and interest rate alternatives accessible to them. The beneficiary can use ET Wealth’s housing loan EMI calculator for this.
Try to Make a Higher Down Payment-
It is advisable to pay a higher down payment to lower the expense of EMIs as no lender will provide the borrower with a loan for more than 80-90% of the property value. However, the remaining 10-20% will be required as a down payment on a home loan. So, once the borrower has made a 20% down payment, he will have to worry about paying interest on the remaining 80% of the home’s worth.
Negotiate the Service Terms with the Existing Lender-
The borrower can negotiate the service terms of the home loan if he has an amicable relationship with their current lender. This might help reduce home loan interest rate on their loan amount.
Make Prepayments from Time to Time-
If the beneficiary receives a yearly bonus, incentive, or other forms of additional income, he can choose to prepay a portion of it. Doing this will cut their loan EMI and term by a few months or years.
With these housing loan facts in hand, the borrower will be able to spot an advantageous deal. Indian companies offering home loans are a solid choice to explore in this regard. They have a low home interest rate, a tenure of up to 30 years, a high-value sanction, and a home loan balance transfer facility. To qualify, simply meet the easy home loan eligibility criteria, submit the minimal documentation required to process the loan, and await loan approval.
