How to get the lowest home loan interest rate in 2022

Wiki Article

Imagine if you could buy your new house by obtaining a home loan, but repaying the loan at the lowest possible interest rate, thus saving on a lot. Sounds interesting, doesn’t it?

Well, a few months ago, I started my home buying journey by searching for the available houses for sale online. Since I had to keep track of the different houses that I had short-listed, I decided to simultaneously calculate the approximate home loan that I would need to acquire as well as the interest rate at which I would require to repay the loan. I obviously did a lot of research which gave me somereally useful tips on various aspects of the homebuying process, one of which included some insights on home loans.

This is when I came across a very interesting blog by HomeCapital, which clearly and systematically specified the various ways in which you can obtain a low interest rate on your home loan. Now why would anyone not want to save as much as possible on their expenses? So naturally I went through the blog & gathered the necessary information from it.

Here are some of the ways that I found helpful in getting a lower home loan interest rate:

Maintaining a good credit score
What is a good credit score? If you have a history of paying back your debts on time, your credit score increases, which further keeps improving if you’re consistent with timely repayments. If you delay or postpone your payments, it will start reflecting on your credit score, thereby affecting it negatively. Since companies tend to give out loans based on your creditworthiness, it is absolutely essential that you maintain a good credit rating. Once they’ve seen that it is on the higher side, they will charge you a comparatively lower interest rate.

Making a bigger down payment
It is always advisable to get a loan amount of your exact requirement. You need to keep in mind that the bigger the loan you borrow, the higher will be your interest rate. Therefore, you must try to pay as much as you can on your own because the more you contribute, the lesser you will need to borrow, thus getting a low rate of interest on your loan amount.

Compare the interest rates from different banks
Always ensure that you’ve done your research thoroughly before making any decision. You can easily access the lists of interest rates by different banks on their websites and make a comparison of them to check which gives you the lowest one by using their real-time calculators. Make a note of these rates on a spreadsheet or wherever you find comfortable noting them down. This will help you make the best choice.

You can read about some more effective tips that will help you find the lowest possible interest rate that is affordable for you. For a more detailed knowledge on this, you can check out the HomeCapital blog as you might find this very useful.


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