Almost everyone has an idea that a home loan is a long-term obligation. If you are not well employed or don’t have a source of income, you may not EMIs on time. It is why a housing loan is approved only to customers with profound eligibility.
Sometimes, your home loan EMI may fluctuate as per the prevailing condition or a change in interest rate.
The loan calculator home loan facility helps you calculate an exact EMI amount.
But things are changing in the market, you may again have to use the EMI calculator for home loans. In turn, you may arrive at the right EMI amount.
If your home loan interest rate bottom out, your housing loan EMIs may go up.
What next? Can you still pay the increased EMI, or there are ways to manage it?
Let’s check out everything in today’s post!
Take these steps if you want to reduce your home loan EMI burden
- Pay a higher down payment amount
While availing of a home loan, you should strive to pay a hefty amount as the down payment. A down payment is 15-20% of your new home cost that a lender would want you to bear. It sanctions up to 80-90% of the price of a property as a loan. Hence, the higher is your down payment amount, the better it is to avail a lower borrowable amount. In this case, you are less likely to be affected by market changes. It is because you will have a smaller principal amount, interest and an EMI amount to repay.
- Make prepayments
Another way to help you afford any changes in the market affecting your EMIs is to make time to time prepayments. When you continue doing that during the tenor, you should be able to reduce the borrowed amount, interest changes and pay lower EMIs. But, before making prepayments, check if your lender levies any extra charges for it. If the processing charges are more than what you will save, you should not go for it.
- Renegotiate with your lender
Even if there is a change in lending rates in the market affecting your loan EMIs, you should renegotiate for better terms with your lender. If you have been consistent with your repayments, your lender should consider your request. It can help you avoid the hassles of paying increased EMIs. You can always use the loan calculator home loan for EMI to know about your newly adjusted EMI amount.
- Apply for a home loan with a known lender
If you want to apply for home loan and don’t want to pay extra charges in terms of anything, you should do that with a known lender. Applying with a known lender will help you get faster approval. It is because such a lender is aware of your records. Hence, your eligibility may also be higher. You can use the home loan eligibility calculator on your lender’s site for free to know an exact amount.
- Go for a home loan balance transfer
If you take all these steps and still your home loan EMI is affected by market changes and others, you have another solution to go for. You can go for a home loan balance transfer. It will help you switch your existing loan account from a lender to one offering a reduced rate. It can help you pay reduced EMIs, and save. It is also possible to enjoy a high value top-up loan on balance transfer. This way, you can use the funds to cover anything without restrictions.
If you can consider the discussed points, you can help yourself avoid paying increased home loan EMIs and reduce its burden. But before taking any step, you should ensure using loan calculator home loan for EMI and know your adjusted figure.