misscall Give Missed Call for Home Loan +91 8303001234
Special Offers

Check Credit Score for FREE

Get your Credit Score for Free.

Click to Check Now

Refer & Earn

Referring is now easy using the "Refer & Invite" Link.

Click to Refer Now

Home Loan

Loan for your dream home is just a click away!


MSME Business Loan

Take your business to greater heights with customised MSME Loans


Loan Against Property

Use your property to fulfil your financial needs.

Apply Now

Construction Loan

Build your home the way you want.


Best Ways to Save Money on Your Home Loan

21-Aug-2023 | Home Loan

Best Ways to Save Money on Your Home Loan

Purchasing a home is a significant milestone in one's life, and for most of us, it requires securing a home loan to finance this dream. While a home loan helps us achieve our homeownership goals, it's also a long-term financial commitment. However, there are several smart strategies you can adopt to save money on your home loan. 

In this blog, we'll explore some of the best ways to minimize costs and make the most of your home loan.

  1. Research and Compare Loan Options
    The first step in saving money on your home loan begins before you even apply for one. Thoroughly researching and comparing different loan options from various lenders is crucial. Look beyond just interest rates; consider factors like loan terms, additional charges, and repayment options.

  2. Improve Your Credit Score
    Your credit score plays a significant role in determining the interest rate you'll be offered on your home loan. A higher credit score typically leads to competitive interest rates, which can save you a substantial amount over the life of the loan. To improve your credit score, focus on paying your bills on time, reducing credit card balances, and avoiding taking on too much new debt. You can even check free credit score online and take significant steps to improve your credit score.

  3. Make a Larger Down Payment
    While it might be tempting to put down the minimum required down payment, making a larger down payment can significantly impact your loan's overall cost. A larger down payment reduces the principal amount you need to borrow, which in turn lowers the interest you'll pay over the life of the loan.

  4. Consider a Shorter Loan Term
    Opting for a shorter loan term, such as a 15-year mortgage instead of a 30-year mortgage, can save you a substantial amount of money in interest. While monthly payments may be higher and you'll pay off the loan much faster. You can calculate how much EMI you need to pay using the home loan EMI calculator

  5. Make Extra Payments
    Even making small additional payments towards your Loan can have a significant impact over time. These extra payments can shorten the loan term and reduce the total interest paid. 

  6. Stay Informed About Tax Benefits

    Depending on your home loan type, there might be tax benefits associated with homeownership and mortgage interest payments. Research these benefits and ensure you're taking advantage of them to reduce your overall financial burden. There are various articles and blogs on home loan tax benefits, you can read them for more clarity.

  7. Maintain a Healthy Financial Profile
    Lenders assess your financial stability when determining your interest rate. Consistently maintaining a stable income, paying bills on time, and managing your debt responsibly can contribute to a healthier financial profile, which lenders view favorably.
  8. Avoid Late Payments
    Late payment fees can add up, and a history of late payments could negatively affect your credit score. Set up automatic payments or reminders to ensure you never miss a payment deadline.

    In conclusion, a home loan doesn't have to be a financial burden if you follow planned and strategic approach. By researching your options, managing your credit score, making smart payment decisions, and exploring different repayment strategies, you can save a significant amount of money over the life of your loan.

Post A Comment


Apply For Loan

Loan Amount, i.e=1000000