5 Ways you can Get the Lowest Current Home Loan Interest Rates
Do you want to apply for housing finance and wish to enjoy the lowest available current home loan interest rates?
If yes, most home loan customers’ motive is to get the lowest current home loan interest rates.
And it is also possible to enjoy reduced home loan rates if you follow a few tips. Read on!
1) Compare all current home loan interest rates
Everything is accessible over the internet these days. And it is possible to know about the current home loan interest rates of different lenders. All current home loan interest rates could be compared online. This way, the lowest home loan rate offer could be locked. You can do that on a third-party platform for free.
2) Put down a large amount as the down payment
Everyone is aware that no lender is going to sanction the entire cost of the property you want to buy using the loan fully. A part of the home’s cost has to be arranged on your own. It is what is known as the down payment. An average down payment amount usually ranges between 10–25%. Hence, you should try to put down a large amount as your down payment. Why? It is because doing that will reduce your borrowed amount. The lower it is; the lower will be your charged interest rate. In turn, it will help you enjoy paying reduced home loan EMIs.
3) Choose a shorter tenor
A home loan may come with a tenor of 20 years and more. It is to help you spread the loan amount and pay affordable EMIs. Yes, that’s true! But, repaying the loan over a longer tenor also means paying higher home loan rates. It may increase the loan cost. The best thing will be to go for a smaller tenor if you want to avail yourself of the lowest current home loan interest rates. Yes, it will mean paying bigger EMIs, but you will also save on paying extra home loan interest rate charges.
4) Go for a longer tenor with frequent prepayments
If you can’t afford a higher EMI per month, you can continue to choose a longer tenor. But, that will increase the loan rates. But you can still bring down the cost. It is by making time to time prepayments during the loan tenor. But, before that, you should check if your lender levies an amount for making prepayments.
5) Home loan balance transfer is a feasible option
If you are an existing borrower and unable to enjoy the lowest current home loan interest rates in the market, you don’t need to worry. You can simply switch your current home loan account to a lender offering a lower rate. This way, you can enjoy lower home loan rates and pay affordable EMIs. But you should check the charges of both lenders before doing it. A home loan balance transfer calculator should help you estimate your savings. It may also come with a high value top up loan to help you meet other needs without usage restrictions.
Considering the discussed tips can surely assist you to enjoy the lowest current home loan interest rates and pay reduced EMIs.
Read Also: 5 Vital Tips to Get the Lowest Home Loan Interest Rate that Satisfy your Income
If you are ready to apply for a home loan, you should check how much interest will be payable. To do that, you can use the home loan EMI calculator. It will showcase your precise EMI amount and the exact home loan rates.
Anyone unaware of an amount that a lender will sanction can use the home loan eligibility calculator. The tool is available on a lender’s site and helps you approach the loan without hassles.