Wow! You have achieved the biggest dream of your life. Purchasing the dream house is the milestone in anybody’s life. Managing the home loan is as important as buying it. Apart from preparing yourself for the home warming function and getting down with the list of the guests whom you want to invite, you should know how you should manage your loan effectively and own a home completely on your name. Here are few tips to help you with managing the loans effectively.
Home loan is the biggest responsibility for your life and it is important to manage your finances effectively to repay the home loan on time. Unlike the past, you cannot keep messing up your finances because you have the biggest responsibility to address every month. To manage the money effectively, you should first understand where your money is going every month, I mean the investments you have every month. If you are paying high-interest paying debts, it is advisable to close them as early as possible to manage your fiancés effectively.
Big EMIs stand in your favour
Bigger EMIs are always better in the case of home. When you choose to go pay high EMI without hurting your affordability, the interest rate that you pay on the loan will be reduced over the tenure of the loan. Even the loan tenure of the home loan becomes short and you will be relieved from the burden of house loan quickly and you can plan for later things of life like retirement goals.
Go with partial prepayment
Partial payment of the loan is another good option one should consider managing home loan effectively. It also helps in reducing the home loan tenure thus relieving you from the biggest obligation of life. If you have promotion recently or fixed deposits got matured or your company offered some good bonus to complement your work. You can use these excess funds to make a partial payment of the home loan and reduce the burden as quickly as possible.
Lower interest rate switch
There is big slash in the home loan interest rate by biggest lending institutions in India. To make most of this benefit offered to the customers, you can think of switching the home loan to banks that are offering lower interest rates. The process of switching loan is termed as bank loan transfer. You need to be little careful while making the choice because switching will cost you some charges.
Big No to missing loan EMI
Irrespective of the financial situations, you need to make sure that you are prompt in repaying your loan EMI which will not only draw some penalty but also increase house loan burden. delayed payments will also impact your credit score.