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After looking for a house for long you finally found your dream house. So far so good!

Now what comes in your mind is the right Home Loan. The rate of interest is generally the prime concern when it comes to finalizing the home loan. Even a little difference in the interest rate that you get will make a great difference. Your investment in a house is going to be a huge one.

HERE IS A LIST OF A FEW SMART WAYS THAT CAN HELP YOU PAY A LESSER RATE OF INTEREST:

SHORT HOME LOAN DURATION:

If you go for a shorter duration, it will increase the EMI amount. In this case, your principal amount will be paid off easier. Interest rate is calculated on the principal amount, paying it off earlier will help in the marginal reduction of complete interest to be paid.

TRY PAYING EXTRA EMI:

Well! It may sound a little difficult to buy if you try paying a bit extra EMI your home loan will be clear earlier than it was expected to be. Doing this will help in reducing your principal amount and thus the interest too. 

PAY OFF EXTRA ANNUALLY:

If you get appraised annually by your company, increase the amount which you pay for the home loan. Doing this will help you get a reduced principal amount which will, of course, reduce the interest on your home loan.

REFINANCE YOUR HOME LOAN:

Keep a track of the interest loan prevailing in the market. You may get a loan with a lower rate of interest that is offered by the lender. In this case, you can switch to another bank for a loan. But, before this, you need to check all terms and conditions attached. You need to make sure that the savings that you have accrued from a lower interest rate are lower than the cost of switching it to a housing loan provider. 

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