A home isn’t just a place to reside. It’s a place where countless memories are created. Buying a home still holds a greater significance in every Indian’s heart. The process has become easier today thanks to the easy availability of home loans. But choosing any home loan isn’t considered a wise step. It involves a careful thought process to find the best home loan with competitive rates.
If you have finalised your dream home, it’s time to explore home loan providers and compare their interest rates. In this blog, we will discuss ways to find the best rates and take measures to reduce the rates as much as possible. Let’s check out.
Tips to reduce home loan interests:
Compare the home loan rates
One of the most important ways to get a competitive rate on a home loan is through comparison. Compare the interest rates of non-banking financial corporations or national banks and find out which one offers the most competitive rates. Get the quotes and compare them before making a final move with a lender. This will help you find a lender with the best rate of interest for buying a home in Lucknow or any other Indian state.
Make a considerable down payment
When buying a villa, plot, or residential flat in Lucknow, a significant down payment is always recommended. Paying a big amount as cash payment lowers your overall loan and interest rates, too. So, it’s always recommended to save as much as you can to make a down payment that decreases the principal amount of the home loan.
Go for a shorter repayment tenure
The overall cost you pay in the form of interest rates depends on the tenure as well. A financial institution may provide you a tenure of up to 30 years based on your home loan eligibility. A long tenure means higher rates on the principal amount. So, it is recommended to choose a shorter tenure, which reduces the rates on monthly installments.
You can use a home loan EMI calculator to check the interest rates for a specific tenure. You can check and make an informed choice.
Opt for balance transfer
Another way to reduce your home loan interest rate is to consider a balance transfer. In this step, you can transfer the remaining amount of a home loan to a different financial institution that offers you a lower interest rate. Opt for this option if you are left with no other option. It is because the balance transfer procedure may include some charges or fees.
Prepayment or foreclosure
Another way to reduce your interest rate is to choose foreclosure. When you prepay your home loan, you significantly reduce the rate of interest. Some banks and non-banking financial corporations may or may not charge a foreclosure fee on a floating rate. Repaying your loan in a timely manner reduces the principal amount and rate of interest.
Before opting for a foreclosure, ask the lender first and confirm whether they levy a certain fee on fixed rates.
Conclusion
Taking a home loan from a bank or financial institute is a big decision. You need to consider all the aspects before making a final move. Once you have found a competitive rate, explore Jashn Elevate project by Jashn Realty and book your dream in Lucknow.
