In continuation with our previous blog regarding the reduction in home loan interest, hereby we suggest few more tips that can help you minimize your interest on home loans. The most evident point to be taken into consideration is choosing the right lending organizing offering competitive interest rates and suitable terms and conditions.
Look to get better interest rates on home loan
If you stand in the category of paying the monthly EMIs of home loan on a consistent basis, you find yourself in the class of having a higher credit score whereby your eligibility criteria changes for the interest rates. Being a steady payer, you may file an application to your lender asking them to offer you better interest rates.
This will help in the overall reduction of interest amount.
Home Loan Balance Transfer
In case your lender is charging higher rate of interest on home loan as compared to other lenders and is also not willing to revise your interest rates, you always have an option to opt for a Home Loan Balance Transfer.
In order to reduce the overall loan liability, you may transfer your home loan balance amount to the other lenders who turn up with new offers and better home loan interest rates. For this you must keep an eye over the ongoing interest rates on home loans offered by other lenders.
Opt for a floating rate of interest than fixed
Fixed rate home loans are expensive than the floating rate of interest. Even after taking into consideration all those fees and charges levied by the lender, a floating rate of interest seems to be much cheaper. In case the lender does not allow you to change from fixed to floating, you may always opt for a different lender.
Be alert of exceptional deals and offers
Most people do not know this, but it is possible to negotiate while getting a home loan, especially if you have a good CIBIL score. A credit score of over 800 allows you to ask your lender for a low housing loan interest rate. They prefer customers with a high credit score as it lowers the risk of loan defaults. So, you can get a good deal on housing finance if you inquire for it. Moreover, many lenders give special offers like low interest rates during festivals. So, always look for such offers to benefit from the advantage.
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