Ways for Lowering Home Loan Interest Rates
If you are frustrated regarding the high home loan interest rates and want to have a home loan with low-interest rates then here is a guide for doing so. Your wish of getting a house can be fulfilled as well as you might be also able to save some money.
Here are the ways to save money on interest rates of a home loan
Types of Interest Rates
There are three kinds of interest rates - fixed interest rate, floating interest rate and semi-fixed interest rates. Fixed interest rates remain fixed throughout the home loan tenure. Semi-fixed interest rates are the rates that remain fixed for a period of time and then, later on, turn into a floating type of interest rate. A floating type of interest rate is an interest rate that keeps changing according to the market conditions.
Before deciding what kind of interest rate to choose, you first should do market research or get advice from a loan consultant. The reason for doing this is that if markets are going to bring down the interest rates in future, then you can opt for a floating type of interest rate. But if you are sure that market conditions will increase the interest rates in future or if you want to remain risk-free then you can choose a fixed type of interest rate on your home loan. Hence, the floating type of interest rate is risky but can save money, fixed type of interest rate is not risky and semi-fixed interest loan is a little risky and might save money.
If a woman is an applicant for the home loan in Pune then she can get the loan amount with a 0.05 % to 1% lower interest rate. Furthermore, for her, the stamp duty cost will also be less. Hence if your co-applicant is a woman then also one can get a home loan with a lower interest rate and lower stamp duty cost. The woman can be anyone, she can be your mother, wife, daughter or a sister. There are also tax benefits that you may receive if your co-applicant is a woman.
Little the loan amount, little the interest rates
If you borrow a little amount of loan, then you would be required to pay low-interest rates. Hence, first, try to do payment for the home from your own pockets and then go for the loan.
You can always opt to change your lender. There are provisions by which you can change your lender if the other lender is offering you low-interest rate on your home loan. This transferring process is known as “Balance Transfer”.
There is also an option of paying the home loan before the loan tenure ends. This might save you money or it might not. Of course, prepaying your due in advance will save your money but if there is any prepayment penalty then it will be of no use. You can otherwise invest that money somewhere else. Hence, first, read the conditions of the loan application requirements and then only go for that lender for the home loan.