3 important tips to reduce your home loan interest rates
With the continuing skyrocketing prices of the real estate properties in today's time, it’s nearly impossible for common man to buy their dream home by paying the entire costs. They wonder if they could win some kind of lottery and buy their home. However, not every person is lucky enough to win a jackpot and buy the home. In real terms, you will have to arrange a housing finance to fund your home buying.
Looking at the stiff competition amongst the lenders it’s a daunting task to choose the home loan that's right for you. There are large numbers of financial institutions and banks who offer attractive apnapaisa home loan interest rates try to lure potential customers. However, once you make a loan application, doesn’t mean that you should grab the first deal that you get. Lets' understand that home loans are usually availed for a good period of around 25-30 years.
So, it’s important you make sure you do thorough research before you shortlist the best deal which doesn't give a pinch on your pockets. Firstly, you should check your loan eligibility for the housing loan. It’s usually based on your income source, age, existing debt, repayment history and most importantly your credit score. Luckily, there are home loan eligibility and EMI calculators on the websites of reputed banks and non-banking finance companies or download the app that will help you determine your principal amount, home loan interest rates applicable, EMIs with just a few clicks on the laptops or smartphones. No more tedious calculation, No more paperwork! Thanks to the digitalization.
Once you know your loan eligibility, it’s time to focus on home loan interest rates. You should try to negotiate with the lenders to offer the best rates after careful comparison. This is something you'll be able to figure once you track the market for a few weeks or months. You can follow blogs, get expert opinion online, and keep track of Non-banking finance company ads, and deals. Some lenders out there offer a home loan with interest rate starting as low as 8.30% with a mere processing fee on it. Thus, with good credit score and stable income source you can grab the best deal as soon as possible. Interest rates have a direct impact on your overall repayment costs. So, here are there important factors you can consider to reduce your home loan interest rates:
Compare and Negotiate
Now that you know the importance of interest rates, it would be wise to compare home loans of reputed players in the market and then zero in on a particular lender. You can compare it in terms of interest rates, principal amount, processing fee, repayment options, loan tenure and other charges implacable. Further, with a good repayment history, credit score and stable income source you have the power to negotiate with the lenders to reduce the interest rates. The financial institution will offer loans at highly competitive rates, thereby saving you a good deal of money.
CIBIL Score of 700 & above
Your CIBIL score is one of the important factors that would determine the interest rates on your borrowings. A higher CIBIL score would display your disciplined payment efforts. It will lower your interest rate. Usually, lenders consider a score of 750+ as a good platform to negotiate and offer some attractive home loan interest rates deal. A good credit history will imply lower risk, and thus lender would be willing to offer a lucrative deal to such potential borrowers.
Home loan Re-finance
Many times the existing lenders prove costly on customers' wallet. At such point of time, they can compare interest rates across different lenders on aggregator sites online and then plan to migrate to them. A lower rate will save thousands of rupees and prove affordable on your pockets. With low-interest rate deal, you can reduce the tenure and clear the loan as early as possible.
