5 Smart Strategies to Reduce Your Home Loan Interest Burden
Paying lakhs in interest is not inevitable. With a smart strategy, you can significantly cut down on your interest outflow. Here are five effective methods:
- Make One Extra EMI Annually: This simple trick can cut your tenure by several years.
- Increase Your EMI by 5% Each Year: As your salary grows, so should your EMI.
- Refinance Your Loan: If other banks are offering a significantly lower rate, consider a balance transfer.
- Use Windfall Gains: Use annual bonuses or other lump-sum receipts to make a partial prepayment.
- Choose a Shorter Tenure: If your cash flow allows, opt for a shorter tenure from the start to save on interest.
Model These Strategies
See the impact of these strategies on your total interest paid.
Try it in the Simulator