Money can be saved in multiple phases of loan.
a- While taking a loan
b-While repaying the loan
a- While taking a loan
Calculate how much you can save using Loan Repayment Calculator
1. Get the Best Interest Rate
- Compare interest rate with different banks: Shop around and negotiate for the lowest interest rate.
- Maintain a good credit score: A higher score qualifies you for lower rates.
- Choose
a shorter loan term: 15-year loans have lower interest rates than
30-year loans.
2. Make a Higher Down Payment
- A
larger down payment (20% or more) reduces your loan amount.
1. Prepayment or pay extra amount
- Making
extra payments reduces your loan balance faster, lowering the principle amount.
- Even
paying a little extra each month can save thousands/lacs over the loan’s
lifetime.
2. Avoid Unnecessary Fees
- Watch
out for hidden fees like origination, appraisal, and closing costs.
- Discuss with the bank if the charges can be waived off.
If you have already taken the loan
you can choose refinancing to reduce the interest rate( if it has reduced) or loan term.
- Refinance
when interest rates drop to secure a lower rate.
- Consider
refinancing to a shorter loan term to pay less interest over time.
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