Ways to reduce the burden on a mortgage loan

Ways to reduce the burden on a mortgage loan 

Introduction

A mortgage loan is a type of agreement that is signed between a borrower and the lender which allows the former to borrow money by mortgaging property, or land. The lender analysis the worth of the property and give a certain amount on a particular rate of interest. The mortgage loan is a secured loan because the borrower must present collateral for security. The loan is not a burden but rather a planned decision but the payments at the start of the month can sometimes create constant pressure. 

A mortgage loan is offered by the banks and NBFCs to the borrower who is eligible for taking it at different rates of interest. The pressure created on the minds of borrowers can be reduced by smartly managing the EMI or opting for such options that can make you handle the mortgage loan efficiently. The article below shall explain to you such ways that you can opt to manage a mortgage loan or home loan in the best possible way. 

Tips to manage mortgage loans

Here are a few tips that can help you in managing mortgage loans efficiently. If you are feeling overburdened with the EMIs these tips can make your life easy. 

Paying one-extra EMI per month

The mortgage loan of twenty years can be reduced to sixteen and a half years with just one-extra EMI. Instead of paying 12 EMIs in a year, try to pay 13 EMIs and reduce the tenure by 3 and a half years. It is quite easy to make one extra payment and this can make you feel less burdened. 

Refinancing 

There is a chance that at the time of approval of a loan, the interest rate is higher. The borrower can refinance the loan if the interest rate is reduced. Refinancing is a common option for business owners who have running business loans or mortgage loans to lower the cost of debt and get favorable repayment terms. Opting for refinancing is the better way of transferring running loans to another lender or even with the same lender with better interest rates, repaying options, etc. 

Also read

Things you should know before refinancing your existing business loan

Short-term loan 

A term loan is a type of loan set for a tenure starting from 12 months and exceeding 5 years. The loan is further divided into short-term, long-term loans, and intermediate-term loans. A term loan with a short tenure is a short-term loan and a long tenure is known as a long-term loan. Opting for a short-term loan is the better way to ensure that EMIs are higher but the tenure will be shorter. This ensures that the loan shall be repaid within a short time interval. 

Mortgage Calculator

A mortgage calculator is a tool that can be used to calculate the EMI that shall be paid by the borrower. It is always advisable to use an EMI calculator before applying for any type of loan. The calculator shall give you clarity on how much you will be repaying to complete the loan. 

It is always good to be managed and pre-informed about future payments. Use an EMI calculator for managing loan payments effectively. 

Choosing the Best Mortage Rate 

Many banks and NBFCs are offering mortgage loans, hence it is advisable to check and compare all the interest rates and choose the one which is offering the least R.O.I. Apart from the interest rates also check processing fees or any other hidden charges applied by the banks. Read the terms and conditions of loans before applying for a mortgage loan. 

Also Read

Types of Business loan

List of documents required for business loan 

Conclusion

My Mudra is a one-stop solution for people who are thinking of taking a mortgage loan at the lowest interest rates without hidden charges. Change the way you are looking at loans, from a burden to a planned decision. Get your loan approved and disbursed within a day. Mortgage loans are no more a burden on your shoulders rather it is a planned decision.