Since a home loan involves obtaining a sizeable amount, the monthly instalments inevitably go upwards if borrowers do not choose the repayment schedule wisely.
Both the rate of interest and tenor have a significant role to play here. Therefore, comparing different lenders is a must before getting into such long-term commitments. Assessing EMIs using a loan calculator for a home loan is also necessary to handle the financial responsibility smoothly.
However, apart from paying heed to repayment schedule, individuals also need to know useful ways to decrease their home loan EMIs. For instance:
1. Make prepayments
A great way to deal with hefty EMIs is to make prepayments whenever there is a lumpsum amount available to you. It reduces the borrowed amount in the process, and you can understand the difference by comparing the monthly instalments (before and after making prepayments) using a home loan EMI calculator. However, before going for it, you also need to check if your lender levies additional charges for the same.
2. Choose a known lender
Even though it is wise to calculate home loan EMIs and compare different lenders before going for such long-term credit facilities, choosing a known lender comes with certain advantages. You can easily negotiate for better home loan interest rates in case you have already established a good rapport, and that also increases the chance of getting prompt approval.
3. Make a higher down payment
Submitting a sizeable amount as down payment helps in reducing the principal amount, where the monthly instalments go down automatically. Note that the higher your down payment is, the lesser your home loan interest rate will be.
Apart from these, opting for the refinancing facility is another beneficial way to reduce the home loan EMI burden. However, make sure to check for associated charges and estimate the monthly instalments with a loan calculator for a home loan before going forward.
Read Also: How Home Loan Borrowers Can Benefit from the Home Loan EMI Calculator
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