Reduce Your Interest Burden While Repaying The Home Loan - Compass Hawaii

1. Reduce Your Interest Burden While Repaying The Home Loan Paying the EMI of home loan is really a big financial burden. It often reduces the monthly budget of individuals. Therefore to have an affordable home loan at the lower interest rate, people obviously go for longer tenure loans. In the need of reducing the monthly EMI, it ends up in paying more interest. Try to go for shorter loan term with less interest rate. A short-term loan ensures faster loan repayment which results in less interest amount. You must know that a higher interest payment does not always imply effective higher interest rate. When the loan tenure increases interest payment also increase with it. If smaller is the loan term, the principal amount gets repaid faster. The interest is always calculated on remaining principal amount, repayment made quickly result in less interest paid. You can take lower interest amount to decrease the interest rate. If you already have home loan then go to refinance my loan type at a lower interest rate. When you decide to go for the home loan you should take quick repayment possible amount only. The reason is less principal amount means you owe faster repayment and lesser interest amount has to be paid back. If possible pay some extra money along with EMI every year. This surplus amount gets reduced from your principal outstanding and also your interest burden. You can pay an extra EMI than your regular one. It is the best effective trick for reducing your loan term and interest cost in turn. When the EMI amount is increased to 5% more is definitely the right choice to reduce interest repaying burden. Now you may think how it is possible. It is very simple if you are a salaried person there will be some percentage of hike in salary every year. So if you link it to your home

2. loan EMI every year it is going to benefit you more. The burden of interest significantly will come down. You can use the EMI calculator for calculating your monthly EMI easily. Every year's banks and lending companies offer special rates on the festive season. Before avail, the fastest home loan does research and ensure you choose the best financer who offer you low-interest rate for less term period. If you already took a home loan and planning to get less interest rate you need to go to another bank or finance company. They must be willing to offer a loan for you at the lowest rate of interest. Hence do refinancing of your loan at the lowest rate which will be a wise decision to reduce the burden of loan. Do not forget about asking the charges of switching the loan like legal fee, processing fee etc before taking a decision. Never go for an EMI if you cannot afford. Even though shorter tenure loan is good for less interest payroll still it can be a burden for you. Hence by keeping the affordability as the prime factor choose a home loan EMI cost. SOURCE URL: https://goo.gl/1DDGgL