4 essential things that you need to do after a cut in your home loan rate.
Welcome to FundooMoney, your 24X7 buddy for all your money matters. A home loan rate cut is welcome news for all borrowers. In a moment, we will tell you the four things you must do besides celebrating when there is a cut in your home loan rate. Now, here are the four things you must do after a cut in your home loan rate. These steps will help you drive home the advantage you get from such a cut.
Check home loan rates of other lenders Your home loan provider may have reduced the rate but has its competitors done more? Find out about those home loan providers who have cut their rates more.
Look for a refinance option Now, this will not apply if the home loan rate cuts are small and sporadic. However, in a period of regular cuts, actively explore whether you can refinance your home loan. Of course, you need to enquire from a potential home loan provider whether your property is eligible for a home loan under any refinance option.
Maintain your EMI That’s right. This will ensure that there is a higher principal repayment component in each EMI you pay and you can get rid of the loan quickly by reducing the remaining tenure of the home loan.
Opt for EMI reduction as a last resort Don’t reduce the EMI keeping the tenure same, unless you are facing home budget constraints. In case you get the EMI reduced, make it a point to increase it again once your income rises.
We hope you found this useful. Have you done something smart after a fall in your home loan rate? Share with us and others in the channel about your experience in the comments section. For more such actionable personal finance information, subscribe to our channel. Also, visit our website, download our mobile app and stay connected with us on Instagram, Pinterest and Slideshare.
