It’s important to think about the importance of saving for a down payment. A home loan is an expensive financial product, and if you don’t have enough money saved up, your monthly payments will be much higher than they would be otherwise.
The ideal amount of money to have saved up is between 10% – 20% more than what you’ll owe on your mortgage after closing day. This means if it takes 15 years for someone with no savings whatsoever (like me) to pay off their mortgage principal balance, then he would need $160k in equity at closing time or else he’d owe over $1 million within 5 years after buying his first home!
Increase the EMI and shorten the loan tenure
To increase the EMI, you need to calculate the loan tenure. The loan tenure is the number of months until your home loan matures and you can take over ownership.
To shorten your home loan tenure, you need to compute interest and principal on a monthly basis. This will help you understand how much money is being paid out in interest or principal each month, which helps calculate when it makes sense to do so (for example, if there’s no room left in your budget).
Make extra payments to reduce the principal amount of your loan
If you’re making a monthly payment, it might be tempting to simply make the minimum amount due. But if you can afford to pay more than that and save on interest over time, why not do so?
Here are some reasons why:
- Reduce the length of your loan tenure. Making extra payments will reduce how long your mortgage loan will take to pay off (and thus how much money you spend on interest). This is especially important if there are other factors contributing to high monthly repayments such as high property taxes or insurance premiums. It also helps avoid paying off early because once those loans have been paid down so much that they’re no longer considered “interest-bearing”, then any remaining balance becomes principal instead!
If you have liquid funds, pay off your home loan using a personal loan
If you have liquid funds, paying off your home loan with a personal loan is a better option. In this case, the interest rate on your personal loan will be lower than that of a home loan and it will also help you save money in other areas such as taxes and insurance premiums.
To find the best possible deal for yourself, consider what kind of relationship between your monthly EMI payments and how much cashflow you have available in each month. For example if your total monthly EMI is Rs 10 lakhs but only Rs 3 lakhs are available for paying these dues then this can be considered as a good scenario where most banks offer attractive rates on their personal loans (between 8% & 12%) while others may not even give any incentive at all because they believe that people who don’t pay their homes would also not repay them back). On top of this there are many other factors like distance from one’s house/office etc which should also play an important role before choosing which bank will provide better service overall!
If after discussing all these aspects with friends/family members we find out that our financial situation allows us to take out more than one quarter per month then we should apply immediately since there could be delays due either due lack of money or otherwise connected reasons such as illness etc..
Refinance your existing home loan with a new lender
- If you decide to refinance your existing home loan with a new lender, it’s important to find one that has lower interest rates and longer tenure.
- You should also check out the EMI offered by any potential lenders and make sure it is affordable for your budget.
- A good idea is to compare several different options before settling on one because there are many factors that affect the amount of money you end up paying in EMIs such as:
- The tenure of your loan (how long do I have before having to pay off my entire principal?)
- The interest rate of my existing loan (should I try for a lower rate or just stick with what I already have?)
Make sure you are able to make ends meet.
- Make sure you are able to make ends meet.
- Make sure you can afford the EMI.
- Make sure you can afford the EMI for the entire tenure of your loan, with a contingency (if necessary).