Keeping Tabs On Your Home Loan Rates
When do you need to keep tabs on home loan rates in India ? The factual answer is; all the time really. It may not be something that all the borrowers want to do, which is understandable. However, you cannot escape the practical realities of it. You need to watch your housing loan interest rates regularly as they have serious implications on your home loan, repayment schedule and EMIs. So, these are the three important reasons namely for keeping a check on the home loan rates in India.
Negotiate a better home loan deal
There is a time gap between the date of your home loan application and the approval for the same. This time may work against you; if competitive banks and housing finance companies make better home loan rates in the interim. You certainly do not want to miss out on these deals. You want to be in a position to take the maximum advantage of these ongoing home loan offers. So, keep an eye out for related advertisements and online offers so that you can have a word with your branch manager or loan executive to make the most of it.
Opt for a home loan transfer
Within the first few years of the home loan; most borrowers pay a significant portion of their home loan principal amount. You can watch out for home loan offers from competitive banks and housing finance companies so that you can choose to carry outa home loan balance transfer; provided it is a profitable decision. You must focus on the lowest home loan interest rates rather than prepayment offers because it will actually go a long way in minimizing your interest repayment considerably.
Adjust your monthly cash flow
There are always clues in the home loan market that the interest rates may escalate. The home loan borrowers need to watch out for such kind of news. You may need to pay higher amount of EMIs from the subsequent month if the housing loan interest rates for your home increase. It is especially a risky situation for borrowers with floating interest rates. So, keeping a close eye on these fluctuations is almost mandatory.
You will need to tighten your expenses to make room for the additional EMI payment that you will incur. So, it is not a casual choice. It will be much more challenging if you have other expenses or financial commitments. However, you cannot default on your EMIs as it will affect your credit history and also chances to get a loan transfer. Hence, it is a smart choice to keep a look out on the housing loan interest rates and be prepared for any possible fluctuations.
