4 Tips to Ease the Stress of Home Loan Interest Rates
Once your Home Loan is approved and sanctioned, you need to focus on repaying the loan along with the interest. With the right research in your corner, you can learn to properly deal with interest rates and pay back your loan on time. In this article, you will read about how to reduce interest rate burden on Home Loans.
Companies like Bajaj Finserv offer you the chance to submit online applications for Home Loans via their own websites. Whether you apply online for Home Loans or in person, there are a few things that you need to keep in mind beforehand so that the interest rate doesn’t become a problem later.
Reduce Interest Rates Burden on Home Loans
Communication and Negotiation are Key
When it comes down to it, lending institutions are operated by people. If you feel you aren’t getting the best deal, you have the right to talk it out with the institution. The Reserve Bank of India issued a new policy that tips the scale in favour of borrowers. You can discuss your contract with the financier in order to get a better deal. If the interest you’re paying for the loan is on the higher side, then you can always talk it out.Don’t hesitate to express concerns over what you’re paying, because at the end of the day, it is your money and you have the right to clear any doubts that you might have about it. Time changes many things, including the prevailing Home Loan interest rates; so talk to your lender and find out if you’re being offered a lower interest rate.
Allow yourself to be proactive during the process of repayment. Sometimes, interest rates may increase or decrease, and it’s crucial to keep yourself informed of these changes. For instance, Bajaj Finserv provides a range of constantly improving benefits to its customers, including some of the lowest interest rates in the country.
Reconsider the Tenure
You could readjust the tenure of the loan to manage your Home Loan interest rate in a better way. If your interest rates increase midway, you can communicate the strain it puts on your ability to make ends meet. Lenders are often open to extending the tenure of Home Loans; a longer loan tenure means a reduced EMI amount.
Adjust Your Interest Rates
Any adjustments to the interest rates need to be made before the midway mark of your loan tenure. This is because in the first half of your loan tenure, the EMIs that you pay go toward the interest of the loan, while the second half consists of mostly principal payments. For example, say your loan tenure is 20 years. In this case, you need to adjust the interest rates within the first ten years of the specified tenure. Post the ten-year mark, rethinking the interest rates won’t be of much help as you’d have already paid off a major chunk of the interest.
If you have more than one loan under your belt, then ideally you need to focus on paying back those loans with the highest interest rates before moving on to the low-interest ones. The right strategy can help you successfully tackle your interest rate concerns, helping you repay your loan on time.