Quick Tips to Bring Down the Interest Rate for Home Loans
Does it not make the whole loan payment process easy when the interest rate that is paid every month is less. Yes, of course, it makes the payment process very much easy and not much burden to take on for the borrower.
There are Housing loans in Hyderabad
provided by many lenders. With just a few tips both new loan borrowers, as well as existing ones, can benefit by getting low-interest rates from the lenders.
For new home loan borrowers
1. Compare rates online: You got to be smart in getting the right home loan. Nowadays everything seems to be online and you can also get a loan deal online. You just must search for multiple lenders by sitting at home and then get their best deals to you. They give you details on certain things like their interest rates, fees charged and other extra charges. You need to make a note of them and see which lender offers the best loan with the best price.
2. Tenure period: Your tenure period will decide on the interest rate that you pay every month. If you wish to choose a longer tenure period to pay the loan, then prepare yourself to pay more amount of interest by the time your loan is cleared but the interest rate that is charged will be less. So, you need to calculate the tenure and the interest rate options before opting for a home loan as this will give an impact on the amount of EMI that you pay every month.
3. Down payment: You need to know you need to pay a down payment to the lender before taking the loan. The lender will give only about 80-90% of the loan amount and the remaining amount must be made as a down payment. So, you need to make sure to make a higher down payment as this will decrease the Loan-to-value ratio.
For existing home loan borrowers
1. Balance transfer the loan: If you are an already existing borrower then if you think that you have been paying a high interest rate to the lender, then you have a chance to transfer the remaining balance to another bank that is offering lesser interest rate. Generally, banks offer interest rates based on the MCLR (Marginal cost of funds lending rate), this differs from one bank to another.
2. Prepayment of loan: If you have some savings made that you don’t need at present, then that amount can be used to make prepayments for the home loan before the end of the tenure period. This will reduce the overall interest payments that are made to the lender. Lenders will give an extra mark when you try to pay some extra EMI at least occasionally. This might sound a bit burdensome, but it makes it easy for you to repay the outstanding principal amount and interest rate will be reduced.
3. Credit score: A good credit score will give a good impact on the lender. It makes him believe that you make the payments on time and give them any trouble with defaulting the EMI. So, when the lender checks on your credit history and if the credit score is high, then the lender will charge you with a low-interest rate. With this rate, you can easily clear off the loan within no time.
Home loans can be a risk to the borrower as you must pledge the house with the lender. With the property being under risk, it is very much important for you to choose the right lender and who offers the loan with a low-interest rate.