Are you planning to buy a new home? Thinking about applying for a home loan? Before you buy a home or property, or renovate your existing home, take out a home loan. Today, real estate prices are rising at an extraordinary rate. Here you need to take out a home loan. Once your home loan is approved, you will need to manage your monthly home loan EMI.
How to effectively manage your home loan EMI:
Do careful research:
There are several options available in the home loan market. It becomes difficult to choose the best when each seems better than the other. Therefore, it is better to do a good research before deciding on the right option. Compare the interest rates offered by different lenders and choose the interest rate with the lowest interest rate based on creditworthiness.
Manage Your Income:
Lenders believe you often a stable source of income is proof that the borrower can repay the loan on time. Your bank will ask you to pay around 40% of your net income as EMI if you have no existing debt.
Prioritize and Schedule
You should try to avoid late payments on your home loan. A late penalty can add more liabilities to your debt. In case of any difficulty in payment, you should contact the lender immediately. They might offer you the best possible for your issues.
Don’t Just Pay, Pay More
Increasing the EMI amount by 5% every year is a very smart move to reduce the interest rate burden. You can match this increase to your salary increase or any other annual bonus. If you combine the two, i.e. pay one additional EMI per year while increasing your EMI amount by 5% each year, your interest burden will be significantly reduced. You can use an Home Loan EMI Calculator to easily calculate monthly EMIs.
Use EMI Calculator
A home loan EMI calculator is an online tool that helps in measuring the home loan installments that you pay every month based on your monthly income, expenses, and other factors. A home loan calculator gives exact details of EMI payments and interest rates. Thus it makes it easier to select the best home loan scheme.
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Tips to Manage Home Loan EMIs
