Constructing or buying a house is a significant milestone for most individuals and some depend on home loans to fund the expense. These instruments offer ample funding and give you the option to repay comfortably over several years. However, despite the benefits of a lengthy repayment window, it is helps to know how to reduce home loan tenure as it allows you to reduce the total interest payable.
When it comes to a home loan tenure reduction, it is normal to have questions such as:
While having answers to these helps, it may be best to focus on the basics of learning how to reduce tenure of home loan to start with. For insights on this subject, take a look at the following pointers.
There are a few reliable ways to shorten your tenure, and they are as follows.
When you make a partial prepayment, the principal amount reduces, and this affects the loan duration when you keep your subsequent EMIs the same. Making such payments consistently can help you shave off several months from the loan tenure and allows you to save on interest.
During the home loan reset period, you may be able to request the lender to lower the tenure applicable on your loan. As your income increases with time, be sure to ask the lender to increase your EMI amount, so that your tenure decreases. However, before you request your lender to reduce the tenure of a home loan, ensure that your income can handle the additional EMI burden.
Yes, loan refinancing can help reduce the loan tenure. When you switch to a new lender, you can negotiate for better loan terms and this includes restructuring the loan’s repayment duration to one that better suits your financial goals.
These pointers clearly answer the commonly asked question, ‘How can we reduce home loan tenure?’ and give you more insight into the benefits of doing so. In any case, one of the best ways to reduce the tenure is to transfer the loan to a new lender and get the terms you want. This is a benefit you enjoy when you opt for the Bajaj Housing Finance Limited Home Loan. It has a quick and easy home loan balance transfer feature, allowing you to switch lenders and resume loan repayment on more suitable terms. Thanks to this loan’s quick loan processing protocols, there are minimal delays. To get started and avail of all the benefits on offer, simply apply online by sharing basic details.
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Last update on 11-Mar-2021
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