When compared to other big life goals like getting a car or saving money for your child’s further education, buying a home is likely the largest financial commitment that the majority of individuals will make in their lifetimes. Yes Bank Home Loan EMIs usually consume up a larger percentage of most people’s financial lives and active working years because of the inclusion of larger loan amounts and longer loan terms. However, there are a number of ways to reduce your monthly mortgage payment, such as by taking advantage of low and beneficial home loan interest rates. Use the home loan EMI calculator to figure out your monthly payment.
And now for some innovative methods that both existing and potential Indiabulls home loan borrowers can employ to lower their monthly EMI payments:
Select a longer loan repayment period
You can repay the loan more easily and without putting an undue burden on your finances if you choose a longer house loan tenure because the EMI will be lower. An EMI of Rs 61.993 would be required for a Yes Bank Home Loan of Rs 50 lakh with a duration of ten years and an interest rate of 8.5 percent annually. On the other side, a longer payback period of 25 years reduces the monthly cost to Rs 40,261. If you’re uncertain, utilise the Home Loan EMI Calculator to help you comprehend the variations in EMI.
In order to calculate the loan period for which you would feel comfortable making monthly payments, it would be wise to use an online EMI calculator tool, such as the Indiabulls home loan EMI Calculator.
Remember that although a longer loan term increases the total cost of the loan’s interest, you can lower this cost by making prepayments if you have additional cash in the future. Despite the Reserve Bank of India’s directive that lenders refrain from charging prepayment penalties for loans with floating interest rates, fixed rate loans may still be liable to these charges. Prepayment fees should be avoided wherever possible since overall prepayment advantages (in the form of reduced interest expenses) outweigh potential prepayment fees.
If you can, put more down payment money.
Borrowers must provide a minimum of 10 to 25 percent of the purchase price as a down payment because the Reserve Bank of India allows lenders to finance up to 75 percent to 90 percent of the cost of a house through a home loan. But rather than just fulfilling the requirements minimally, you should examine your EMI on the Home Loan EMI Calculator and attempt to make a greater downpayment. It is wise to do so since the bigger the downpayment you provide from your own funds, the less money you will need to borrow and pay back with principal and interest.
A greater down payment would also result in a reduced LTV ratio requirement, which would improve your chances of obtaining a future mortgage. You must be careful not to overextend your finances or endanger your ability to achieve other important financial goals when attempting to obtain a greater down payment for an Indiabulls home loan.
Compare rates from as many potential lenders as you can
To reduce their anticipated house loan EMIs, which can be checked according to the loan amount, tenure, and interest rate input in the Home Loan EMI Calculator, potential home loan applicants should compare a variety of lenders before selecting a certain lender.
In order to get low interest rates, it is crucial to keep a high credit score.
Your credit score is one of the most crucial things to take into account while your Yes Bank Home Loan application is being reviewed. You may be more eligible for loans if you have a strong credit score, which is normally 750 or higher. You may also be able to negotiate lower interest rates on loans and credit cards. Checking one’s credit score is typically advised in order to avoid disappointment when applying for house loans. This practice also enables people with bad credit or no credit to take the appropriate corrective action to build or improve their credit ratings and then apply later with a better and higher credit score.
Making it a habit to check one’s credit report on a regular basis—at least once a month—is another crucial step. This practice would provide you ample time to update your credit report as needed to improve your credit score and ensure that the credit bureau promptly fixed any inaccuracies or anomalies (if any).
Have your loan term extended and the balance of your mortgage transferred
Many borrowers who want to reduce their EMI load choose the option of asking their lending institution for an extension of the loan tenure because it results in a lower monthly instalment payment. When examining the EMI amount on the home loan EMI calculator, you can clearly see the difference in EMI when the tenure is changed.
On the other hand, asking your lender to prolong your loan’s term is viewed as loan restructuring, which may be subject to rewriting regulations and, as a consequence, could have a negative impact on your credit score. Avoid this by refinancing for a longer term as opposed to extending the term of your present mortgage by moving your debt to a new home loan with a low interest rate.
But bear in mind that a longer loan term will result in a higher overall interest cost, which you can easily verify on the Indiabulls home loan EMI Calculator. Try to make prepayments whenever you have extra cash in the future to save money on interest. When thinking about a balance transfer, keep in mind that the new lender will handle your request as if it were a fresh Yes Bank Home Loan application and, as a result, will tack on costs like processing fees, administrative fees, and other fees. Only proceed with the balance transfer if the overall savings are sizable and outweigh any possible fees or charges.
To sum it all up
Undoubtedly, obtaining a home loan after determining a manageable EMI amount using the Home Loan EMI Calculator is one of the most significant and consequential financial decisions a person will ever make. Additionally, the overall interest expense is on the higher side due to the longer loan repayment duration associated with Yes Bank Home Loan. Therefore, it is imperative that both new and existing borrowers take the required actions to minimise their EMI load while maintaining their financial stability.