A home purchase is a big objective for most of us financially. The only way to get closer to this goal is to secure a home loan because the cost of a home is usually equal to several years' worth of money or even decades' worth of savings. The high cost of a Saraswat bank home loan, however, leads to substantial regular payments (EMIs). This is a significant amount of the borrower's regular income, leaving little room for the borrower to pursue other financial goals.
Existing and potential Home Loan borrowers can benefit from the following advice for lowering their monthly home loan payments:
Current IndusInd bank home loan Customers
You may want to consider transferring the amount of your mortgage to a longer repayment term. If a current borrower wants to reduce the financial strain of their EMI payments, extending the term of their loan is a common solution. This is because lower EMIs are associated with a longer loan term. However, approaching your current lender with a request to prolong the loan's term is considered loan restructuring, which may fall under the purview of a rewriting norm and negatively affect your credit score as well as your ability to qualify for future loans and credit cards. Therefore, instead of making this choice, it would be prudent to think about moving the balance of your Saraswat bank home loan to a new lender that offers a lower interest rate and a longer payback period in order to reduce the amount that you pay toward your mortgage each month.
Consider the following scenario: you borrowed Rs 35 lakh for 22 years at 9.5 percent, with a corresponding monthly payment of Rs 31,656. You still owe close to Rs. 30.31 lakh on your IndusInd bank home loan, and you have 15 years left on the loan's tenure. To lower your EMI even further, consider refinancing the remaining balance of your house loan with a new lender at 8.5 percent interest per year for the remaining 15 years of the loan's term. This will bring your new EMI down to Rs 29,853. If you extend the repayment duration to 25 years, your monthly payment will drop to Rs 24,411.
Your HLBT application will be processed by the new lender in the same way as a new Home Loan application and will incur the same costs (such as processing fees, administrative charges, etc.) as a new Home Loan application. That's why it's crucial that you consider all the fees associated with the balance transfer choice before making your final decision. Don't do it until you're sure you'll save more in interest payments than the balance transfer would cost you.
For First-Time Saraswat bank home loan Borrowers
The Reserve Bank of India (RBI) authorises lenders to finance up to 75%-90% of the cost of a house in the form of a home loan, so it's in your best interest to save up for a higher down payment. Because of this, borrowers must come up with the money for the down payment themselves. Most IndusInd bank home loan applicants put together the minimum down payment required by the lender, although the applicant's long-term financial health would be best served by putting down more money. A lower overall loan amount means lower interest and EMIs, so it makes sense to put down as much money as you can upfront.
Your chances of getting approved for a Home Loan will improve as a result since the lender will be taking on less risk. When saving for a higher down payment, it's crucial to avoid jeopardising your emergency fund or other important financial goals. Interest payments could go up if you have to take out loans to achieve your goals.
When applying for a house loan, choosing a longer loan term can decrease your monthly EMI payment and increase the likelihood that you will be granted the loan. A longer loan term may result in a higher overall interest rate, so if you anticipate having access to additional funds in the future, you may want to consider making prepayments on your mortgage. The Reserve Bank of India (RBI) prohibits lenders from charging a prepayment fee for floating-rate loans, but for fixed-rate loans like a Saraswat bank home loan, the interest rate is set by the lender and can be changed at any time with no penalty. If you want to take out a loan but are worried about making the minimum payment each month due to your salary or other circumstances, using an online EMI calculator is an excellent option.
-Compare loan offers across many institutions: When shopping for a home loan, it's a good idea to learn about the various IndusInd bank home loan lenders available to you and then compare these institutions based on factors such as interest rate, processing fee, loan term, and so on. Your interest rate and any additional fees associated with your loan will be established based on the lender's assessment of the credit risk presented by your personal financial history. Lenders use their own criteria to make this evaluation. For instance, many housing loan lenders provide preferential interest rates to customers with excellent credit histories when lending Saraswat bank home loan.
Now that you know how to deal with EMI, you should look into other ways to pay back the loan besides the regular EMI option, in which you pay both interest and the principal every month. First on the list is a home loan with a delayed EMI start date, which some people may not know about. This is called a flexipay home loan policy, and it lets borrowers choose a moratorium period during which they only have to pay the pre-EMI interest and no EMIs. Once the moratorium is over, the normal EMI will begin.
Next is a
home loan with EMIs that go up over time. As the name suggests, the EMIs on
this loan keep going up by a certain amount, like 5%, every year after the
first few years. This can be helpful if you think your income will rise slowly
each year.
