Investors can plan to buy properties in Hyderabad as it is a sensible investment. Hyderabad real estate is profitable. Paying up loans needs to be well planned.
Home is a major investment, both financially as well as emotionally for a person. Most homebuyers stretch their budgets and take a home loan, involving a long-term commitment to paying EMIs. Of course, it is better to repay as soon as possible, as the buyer becomes debt-free soon. Buyers can plan to buy properties in Hyderabad.
How to repay the home loan faster
1. Make Maximum Down Payment
Instead of taking the maximum loan amount, a person is eligible for, it is indeed advisable to pay the maximum down payment possible. It will rather reduce the principal loan amount and thus lower the interest as well as EMI burden.
2. Choose the Lender Who Offers Lower Interest Rate
While there are several banks and Housing Finance Companies that do offer a home loan, it is indeed crucial to do one’s research, compare different lenders, and also make efforts to find the right lender who offers more value. A lower rate of interest does imply being able to pay up the loan earlier. Hyderabad real estate can be a place of sensible investment.
3. Consider Other Fees and Charges
It is better to select the lender who not only offers a lower interest rate on the home loan but also lowers other fees cum charges. Thus, while choosing a lender, it is important to consider processing fees, late payment charges, and other hidden fees, as these do make a considerable difference in getting a loan. It is good to pay EMIs on time in order to avoid late payment charges and also, delayed repayments negatively impact the credit score and future loan applications can get rejected.
4. Increase EMI
If one’s income levels go up, then it is a good idea to pay more EMI by reducing the loan tenure after discussing with the lender. This is indeed a common way of repaying the home loan faster, especially with salaried individuals. Even a small increase in one’s EMI can significantly reduce one’s loan tenure.
5. Make Part-Payments
The lenders actually do place charges on a certain amount of part-payment on home loans that have a floating interest rate. Via part-paying, the buyer can drastically reduce the home loan. Rather than splurging, it is better to do home loan part-payments whenever the surplus funds, such as a bonus, gift, or any other unexpected income.
6. Choose the Loan Tenure Wisely
It is a good idea to select shorter home loan tenure and also pay higher EMIs in order to ensure that the buyer does pay off the debt sooner. In case the buyer is unable to make the timely repayments of the EMIs on account of any uncertainty, he or she will be charged for the delayed repayments, and this will indeed reflect in the buyer’s credit report for a long time. Hyderabad real estate is worth investing in for future benefits.
7. Tax Benefit
A home loan can be an expensive affair, as it comes along with several tax benefits that can help a person save a considerable amount of money every year.
8. Take Advantage of the Falling Interest Rate
In India when the Reserve Bank of India (RBI) cuts the repo rate, the loan interest rates trend goes downwards. It is possible for the buyer to either reduce the EMI or perhaps reduce the tenure in such a situation. It is indeed advisable to reduce the loan tenure and also continue with the same EMI or even increase in case one’s budget does allow a person to clear one’s home loan faster.
Conclusion
Keeping the above-mentioned issues in mind it is good to buy properties in Hyderabad.
