New Delhi | Jagran brand office: The first home purchase is a joy like no other for most of us. Your home not only serves as a place for you and your family to live, but also serves as an assurance that your finances are secure for a long time. However, achieving this goal is difficult. The high prices of properties and houses in India make buying a home quite difficult. You can make your dream of owning a home come true, but you might need a home loan.
A home loan is one of the best solutions to the current challenge of inflation in India. But, while it is true that a home loan can provide you with housing, you need to consider the mortgage interest rate applicable to your mortgage. Applying for a home loan from a reputable lender like Bajaj Finserv ensures that you get pre-approved loan offers and the lowest home loan interest rates available. Using our online home loan calculator guarantees you get accurate information on the equivalent monthly payment (EMI) you will pay for your home loan.
Read on to learn more about the EMI home loan and its impact on your home loan.
What is the EMI home loan?
An EMI home loan represents the fixed amount payable on your mortgage. This EMI home loan includes a portion of the principal amount of the loan with which you purchased the property or house. It also includes a portion of the interest that you pay as well. Some EMI payments tend to be higher than others.
Sometimes you’re lured into a mortgage deal with a high interest rate, but you don’t find out until after the deal is signed. Using a home loan EMI calculator helps you select a home loan deal that favors your pocket. We recommend that you select a long term home loan if you want a lower EMI amount. But if you can afford it, switch to a short-term home loan. We advise you to only select the short term loan offer if you can afford to supplement the high mortgage EMI payments that will follow.
Sometimes the burden of high EMI payments for home loans can seem heavy. To reduce the heat of loan repayment, we suggest ways to reduce this burden.
Ways to Reduce the Burden of Paying Higher Home Loan IMEs
To ease the burden of paying higher home loan IMEs, there are a few methods you can use to get a reduction in what you pay monthly. Remember, lower EMI payments save you money for future purposes. Here are ways to reduce the burden on your EMI home loan.
* We recommend that you consider changing your interest pricing system. Sometimes the lending institution’s loan rates change. An increase in this rate will result in an increase in the amount you pay as a home loan EMI during your home loan repayment process. To avoid this, simply use your lender, be it a bank or a non-bank financial corporation (NBFC), to switch from one interest rate system to another. Note that they may charge you a nominal fee, but that’s little compared to the low EMI mortgage payments you will benefit from.
* Request a home loan balance transfer. Several banks and affiliated financial institutions may offer mortgage loan agreements with variable interest rates. You may just be suffering from a high EMI charge for home loans because the home loan interest rates from your lender are not favorable. You are allowed to request a move from another lender whose services you prefer. We recommend that you perform a background check with your lender before considering this option. Once you learn their real estate interest rates aren’t good enough, request a balance transfer. It only costs one token but saves you a lot more. A quick tip: Make sure you have paid off your home loan IME for up to 12 months before requesting a home loan balance transfer.
* We recommend that you make a partial prepayment of the loan to adjust the current IMEs. If you have a variable rate home loan, your chances of making a partial prepayment to reduce your home loan EMIs are higher than those of a fixed rate home loan. Each prepayment you make affects the length of your loan. Making partial prepayments helps reduce the remaining loan principal amount. We also advise you to negotiate with your lenders to reduce the IMEs of your mortgage by making a large prepayment on your mortgage.
* Look for an extension on your home loan. If the mortgage loan IME charge has become beyond your control, you can extend the term of your mortgage. This will give you some space to pay off the loan and set some money aside for personal savings. It significantly reduces the IME of your mortgage.
Now that you know the ways to reduce the burden of EMI payments on your home loan, wouldn’t you want a lender that offers the lowest interest rates for home loans? Discover Bajaj Finserv’s mortgage loan offers today.
(Note: The article is written by the Brand Desk.)