8 Tips to Lower Interest Rates on Home Loan
Below are eight tips for borrowers to reduce their home loan interest rate:
1.Select a longer tenor
Borrowers can go for a longer loan repayment tenor so that lenders can approve loan at a lower interest rate. Borrowers can use these tips to reduce house loan interest rates significantly. This allows them to increase their savings as the monthly outgo decreases.
2.Maintain a good credit score
If lenders see that potential borrowers have a good credit history, they can sanction their credit at lower interest rates.
3.Go for annual EMI revisions
Borrowers can request creditors for a decrease in the interest rate on receiving a hike in salary.
4.Opt for a balance transfer facility
Individuals can go for a balance transfer if they come across a lender that offers a home loan rates compared to their current one.
5.Try to prepay the loan
Part-prepaying the loan results in a lower number of monthly instalments and decreases the overall interest.
6.Present proof of additional income
One can present proof of additional income to the creditors, assuring them to repay loan on time.
7.Purchase home at a good location
Purchasing a home at a good location ensures lenders that they can sell it to raise money in case of default.
8.Apply for a joint home loan
A joint home loan makes lenders believable that there will be no delay in credit repayment, and hence they can allow a lower interest rate.
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