Every Home Loan subscriber adopts a different strategy to transform the repayment strategy in accordance to their convenience. However, in order to achieve that level of comfort, some people end up paying more than required towards their Home Loan. Therefore, it’s more than essential to formulate a repayment strategy that allows you to dispose of the Home Loan easily and manage your EMIs easily. Owing to that, here are a few insightful steps that you can follow to manage your Home Loan EMIs.
Pay More as the Down Payment to Reduce the EMI
Usually, it is suggested to pay at least 20% of the total cost of the property as down payment, but that’s because housing finance doesn’t finance more than 70% of the property’s value. As per different professionals and existing Home Loan customer, you should pay as much you can as down payment. Having said that, you should keep in mind not to exhaust your cash reserve and put yourself in a vulnerable position. Paying a higher down payment reduces the size of EMI and makes the repayment procedure easier to pursue.
Plan your EMIs Using Home Loan EMI Calculator
Now, before taking the Home Loan, do some self-evaluation and plan your EMI accordingly. Using the Home Loan EMI gives you the flexibility to adjust the repayment tenor and EMI amount and determine the right combination.
Maintain an Additional Cash Reserve to Avoid Missing Out EMIs
As it is in your best interest to pay the EMIs in a timely manner, you should manage an additional cash reserve to use in case paying the EMI seems difficult.
Bottom Line: You can also part-prepay the loan using your extra income or bonus to reduce the size of the EMI.
