The process to own your home in Chandigarh and Tricity region is a long quest. It may take a while, from the purchasing decision to the point where a deal is finalized. In between all this, you are likely to acquire a home loan to facilitate your purchase. And you still don’t own the home till the home loan is paid off.
So are there any tricks to minimize home loan burden? Even a small reduction in the interest rate or reduction in the timeline of home loan payment can make tremendous differences in the final amount.
Consider these tactics regarding home loan repayment to reduce your burden:
Opt for a short-term home loan
A home loan acquired for a short duration is a sure way to pay lesser interest for your home loan. You pay less EMI’s and hence less interest on the overall principal amount. As you quickly pay-off your EMI the amount of interest on the principal amount keep on reducing. In the end, you will be able to save handsomely by taking short term home loan. Remember, you have to bear the burden of higher EMI’s under a short term loan.
Paying additional EMI’s
Whenever financially possible, pay extra EMI to the bank. This will reduce the principal amount and you will be able to clear your home loan earlier than the designated timeline. And as you pay extra EMI, the principal loan amount will keep on reducing, resulting in lesser interest amount.
Refinance the home loan
This is an old trick to strategize your loan payment. If you are able to find a loan (home, personal, etc.) at a lower interest rate than the current home, then consider taking it. But do it only after carefully evaluating the profitability to be gained out of the new loan.
Invest your extra income
Any extra income you are able to accumulate can be invested towards the payment of EMI. The annual increments, bonus, and rewards at the office can be smartly diverted towards EMI payment. This is a foolproof way to minimize the total amount of loan to be paid.
It is a good idea to speak to real estate experts about home loan reduction strategies. The SRG Group also offer guidance and support related to home purchasing and consultation regarding luxury apartments in Mohali.