SAt a time when the Covid-19 induced lockdown is affecting cash flows, making regular loan payments has turned out to be highly challenging for many people. In the case of people who have taken home loans where the EMIs are high, this challenge is far tougher. To make your home loans easy you want to produce your EMI payments by following the tips:
Change your lender
If a lender offered you a high home loan interest rate, you can find a new lender who offers lower interest rates and thereby change your lender mid-loan. If this does not happen, you can seek a lender willing to extend your repayment period. You can use an online home loan EMI calculator before you change lenders so that you know exactly by how much your EMIs can go down. It is to be remarked that changing leaders is extremely convenient. All that you have to do is approach your lenders-existing and new and request for a loan balance transfer. This shows refinancing your housing loan at a lower interest rate is one of the trouble-free ways to lower EMI.
Pre-payments help
Lenders allow borrowers to repay vast sums of their home loans before the end of their tenure. To help the borrowers more, most banks have dropped taking pre-payment fees. If you wish to lower your EMIs and the amount of interest charged, pre-pay your home loan online or offline at the beginning of your repayment tenure.
Make a bigger down payment
Making a higher down payment helps you reduce the size of the principal amount. This means the interest payable and the EMI charged naturally reduces. If you have any extra savings you can use to make a significant down payment while applying for a home loan, go ahead doing so.
Choose longer tenures
You can at best extend your home loan tenure in case other options do not work. Given a longer loan repayment tenure, you will have to pay more interest, but your EMIs will come down to a greater extend. You just need to negotiate with your lender to get your repayment period extended. Determine the exact amount of interest you will pay by using a home loan EMI calculator. You must read the home loan eligibility criteria of the lender before you choose the lender. Use clever financial planning and seize on opportunities for interest or EMI reduction whenever possible.
