How to reduce mortgage loan interest rates ? | Benefits of mortgage loan | 8 ways to reduce mortgage rates | 4 Tips to Know how to reduce mortgage rates | How To Lower Your Mortgage Payment
What does mortgage mean ?
Mortgage or mortgage loan is a loan taken against property. In which a person mortgages his property to a financial institution and takes some amount as a loan on it and after paying the loan amount, gets back the ownership of his property. Mortgage loans are generally taken by people who buy a new house.
He takes a loan against the registry of the house by mortgaging the documents of the newly purchased house with the financial institution.
Benefits of Loan Against Property
Loan amount :-
You can get up to or more than 55% of the market value of your property as the loan amount. You can get a higher loan amount with a loan against property as compared to a personal loan. Aavas Financiers
Limited provides you with adequate loan amount for your children’s higher education, marriage, travel, hospitalization, elder expenses.
Lower interest rate:-
Since loans against property are secured loans, the interest rates on loan against property are lower than personal
loans and you can save on higher EMIs due to the lower interest rate.
Simple Process:-
Getting a loan against properties is much easier as compared to other methods. Being a secured loan, the loan disbursement takes less time as compared to non-collateralized loans.
The entire process of home mortgage loan application and loan disbursement is quick and simple.
Long tenure and low EMI:-
In home mortgage loan, the loan amount can be availed for a loan tenure of up to 15 years.
The EMI burden comes down as your monthly EMIs come down over a longer tenure.
How to reduce mortgage loan interest rates ?
You have to pay EMIs (EMI) as long as the home loan is tenable. If you get lump sum amount from somewhere, you can get it closed earlier also.
In banking parlance, it is called foreclosure of loan. How to close home loan prematurely ?
Pay the principal amount
When you take a loan against property, try to make additional payments every month which will help you reduce your mortgage loan interest rates.
good credit score
If your credit score is sufficient, then mortgage loan is the best option for you. A good credit score proves that you can repay the loan in full. Because of which your mortgage loan can work.
Convert EMI
If you do EMI work for your loan, then you can give your loan easily.
Refinance
People who want to work out the interest rate of their mortgage loan. They should consider refinancing their mortgage loan.
Have to take no-dues certificate
Apart from the original documents, the customer should also collect a no-dues certificate from the bank. It should be mentioned in this certificate that you do not have any outstanding dues. The certificate should include the address of the property and the name of the customer.
keep these things in mind
- In the document checklist, check that all the documents have been returned to you safe and sound.
- Inform the credit rating agencies about the foreclosure so that they can update it in their records.
What is mortgage and types?
Mortgages are further classified as
1) Conventional mortgages
2) Jumbo mortgages
3) Government-insured mortgages
4) Fixed-rate mortgages
5) Adjustable-rate mortgages.
How many types of Mortgage Loan are there?
Registry Mortgage Loan
Mortgage by Conditional Sale
Usufructuary Mortgage
How to apply for loan against property ?
You can apply for Loan Against Property online as well as offline.
Why is the mortgage loan interest rate low?
Generally speaking, the interest rate of mortgage loan is low. To take this loan, people mortgage their movable or immovable property with the bank. The loan of the bank is completely secured by the mortgaged property, that is, the chances of sinking become almost zero. You already know that the interest rate of secured loan is low. This is the reason why the bank considers it appropriate to give mortgage loan to its customers at a low interest rate.
Children’s higher education or marriage, business growth or big expenses like hospitals or many other occasions when a person needs instant money, It is necessary that before applying for the loan, the purpose of the loan should be clearly understood. Depending on the loan purpose, we must get proper information about all types of loans so that you can make a comparative study of different types of loans and their interest rates and make the right choice. In this way, you will be able to reduce the additional burden by saving a fair amount on your EMI.
How to pay off home loan fast ?
There is power in part payment : You do not have to wait for the lottery to repay the loan ahead of time. Small but regular payments can help reduce the loan tenure Those who buy a home in 28-30 or 30-35 years can clear their loan in seven to eight years. The reason is that annual increments and bonuses keep increasing, leaving them with a lot of cash.”
Increase EMI, reduce loan tenure : You can prepay the loan even if you have neither savings nor funds.
Decide to increase the EMI by 15% per annum. With this, the loan can be closed in the 97th month.” If increasing the EMI by 10-15% seems difficult, you must at least ensure that the increase in interest rate does not increase the loan tenure.
How to close home loan before tenure ?
After receiving the application, the bank will disburse the balance loan amount. In this, the amount of interest paid so far and the date of foreclosure will also be taken into account. You can pay the remaining amount through check or online transfer (NEFT / RTGS). There is no pre-payment penalty for early closure of the floating rate loan