If you are the one who is struggling with loan repayments in such inflation then you must be aware of the fact that you are not the one only. There are number of people who are struggling with the same thing at same point. Buying a dream home requires huge funds, for which you can “Apply For Home Loan“ but one has to repay the loan along with interest rate in fixed period.

Generally, there are two main factors such as rate of interest and repayment period that affect the home loan because these are the factors that determine your EMI which you are supposed to repay the loan. One can work on both the factors to cut down the loan repayment to shed the loan burden in less time.

Therefore, in this blog post we will go through some of very useful points that would help you to cut down your interest on your current home loan:

→ Higher down payment: Higher payments have many benefits so you must plan well before availing a home loan. When you have sufficient funds to make high down payments then it will surely reduce your loan amount that would lead to lower rates and small EMI amount.

Making a higher down payment will increase the chances of your loan approval but you must be careful not to stretch your finances too far as it is necessary to have some savings to face emergencies in future.

→ Pay additional installment: Yes, you heard it right that paying an additional EMI will not only cut down your interest rate but also helps you to repay the earlier than the tenure. You can pay extra installment whenever you get promotion in your office or you get an incentive or bonus. It might be a small amount but it will surely make a big difference by reducing your loan tenure as well as levied interest rate.

→ Prepay your loan: One can opt the prepay facility in which one can deposit some additional amount along with monthly installment to reduce the total loan amount as well as decrease your repayment period. Nowadays, most of the lenders do not charge any foreclosure fee or penalty on the prepayments towards home loan.

→ Avail balance transfers: This option is now available at every lending platform these days. Many individuals are not aware about this facility but it’s really useful to reduce the interest payments. The option of balance transfer let you switch over to another lender who offers you lower rate of interest.

However, to avail this service you have to pay the fees to both the existing as well as new lender. Before doing so, one must conduct a proper research and compare the interest rates charged by different lenders.

Hence, there is no denying fact that it is very exciting to purchase and construct your dream house and you can “Apply For Home Loan Online“ or offline to fulfill your desire. Sometimes, loan repayments towards home loan can prove to be difficult but following such tips would make you able to handle them easily.