Compared to other loan categories such as personal loans, product loans, and others, Home loans are much cheaper. However, there are a lot of people who are paying more on their home loans in Mumbai. Are you the one paying more than the usual rate of interest on your home loan? Do you also want to take advantage of low-interest rates on your home loan EMI? Here is how you can decrease the charged interest rates on your home loan service in Mumbai.
Here are the tips to reduce home loan rates in Mumbai-
Go for Shorter Tenure
Ensure to go for shorter tenures of your repaying cycle as longer the tenure means greater the interests you’ll pay. In order to reduce the interest rates on your repaying cycle, it is essential to choose the tenure carefully and correctly. You can choose the online EMI calculator to calculate your monthly EMI and rate of interest.
Don’t Skip-Make Regular Repayments
Home loan repayments consist of two parts- interest charged on the total borrowed amount and the principal. That is why, initially, you will be paying more towards your charged interests and less on the principal. So, to reduce the burden and levied interest, it is always better to make some extra repayments when you get a bonus, hike on your salary, or an income from any other source. Making partial payments throughout your tenure will ensure reducing the rate of interest charged as well as decreasing the burden from your head. Most of the lenders provide partial payment options without charging any additional fees or charges.
Transfer your Home Loan Balance
Whether it's 5 years or 10 years or at whatever rate of interest you are paying to your EMI for a home loan in Mumbai, you can still refinance it at a lesser rate of interest. Refinancing is one of the best options to consider when looking to reduce the levied home loan rates in Mumbai. It is possible with a home loan balance transfer from one lender to another. This process will help you get your home at a more affordable rate of interest along with a few more perks such as a 3-month EMI holiday, top-up on your existing loan, etc.
Make a Revision in your EMI Payouts Every Year
Last but not least, to reduce the home loan rates in Mumbai, revising your EMI payout annually is vital. However, not every lender does provide this service. Still, if your lender provides this option, so make sure you revise your EMI amount every year at least. Moreover, whenever you see a consistent increase in your monthly income, go to your lender and increase your EMI amount. It will help you pay the principal amount faster and decrease the rate of interest charged on your home loan in Mumbai.
These small steps can lead you to decrease your levied rate of interest on your home loan and help you get out of this repaying burden faster.