5 Ways to Reduce Interest Rate on Your Home Loan

Paying home loan EMIs can become a financial burden even after strategic planning. Here are different ways to reduce the interest rate and subsequently the monthly instalments that can aid borrowers in easy loan repayment.  

5 Ways of Lowering Home Loan Interest Rate

Below are five ways in which one can lower the home loan interest rate:

1. Opting for a balance transfer

Borrowers can go for the balance transfer option if they come across a lender that offers a lower interest rate. However, to get maximum benefit, they can choose this option at the early stages of the loan. 

2. Selecting a longer tenor

A longer tenor provides individuals with sufficient time to arrange the money for credit repayment. Thus, they can request lenders for a lower home loan interest to avoid financial burden. 

3. Checking out part-prepayment option

One can part prepay their loan on getting work bonuses. This, in turn, reduces the principal and the overall interest that he/she will have to pay. 

4. Maintaining a good credit score

A good credit score reflects a efficient loan repayment history. This assures financial institutions that a borrower can repay the loan on time and hence sanction their home loan at a lower interest rate. 

5. Applying for a joint loan

Individuals can opt for a joint loan with their friends or family members. This helps in convincing their creditors for a lower interest rate.  

These strategies help borrowers to reduce EMIs of their home loan if they become a burden on their finances. However, they must check the availability of these options from their lender, before going forward with the credit.