Why it is Important to Keep Reviewing Your Home Loan?

HOUSING | Know More 11 January 2022

Buying a home comes with a lot of financial burden and responsibilities, which, however, is worth every penny you spend behind your cost niche. Home loans come with low interest rates and a duration that you can choose based on your age and other considerations. However, often a mistake that home buyers do is continuing with the payment of home loan EMI or instalment amount without even checking or reviewing the amount remaining for years on end.

Why it is Important to Keep Reviewing Your Home Loan?

It is crucial that you do so, not only for the sake of budgeting but also for other important reasons that might be beneficial for your pocket. Read on to know more about why you should keep reviewing your home loan from time to time.

  • Foreclosure

    Foreclosure is often an option that you might want to consider in case of home loan, especially if you have some hefty amount of cash ready with you. Foreclosure helps you close the loan while partial payment brings down the amount which in turn reduces the monthly EMI amount, thus being less burdensome on your pocket. In order to foreclose or make part payments, you require reviewing your home loan to check the amount remaining, the home loan interest rates, the charges, tax benefits and how much you will be saving ultimately and thereby write the application to the bank putting forth your request.

  • Top up

    Financial situations do not remain the same all through and at times you may feel difficult to pay for the home loan EMI while meeting the other needs. In order to cater to the increased demand for money, it is prudent to apply for a top-up loan with the same bank from which you have taken your home loan. However, to know whether you are eligible for a top-up loan, you need to review your home loan with the same bank or if any other bank is offering a top-up along with a home loan balance transfer.

  • Balance Transfer

    The financial market is dynamic and is always changing. The interest rates may change. The interest rates may plummet, there may be better opportunities for home loan borrowers, special offers and a lot more. The situation may be conducive for you to opt for better rates in other banks wherein you may go for a home loan balance transfer. In order to do so too, you need to check your home loan and submit the necessary loan documents, your income proof or financial status proof, No Objection Certificate from the bank and other necessary documents to support the balance transfer.

Although there is no specific rule as to how often to review your home loan, it is advisable to get a check done every year to note the market rates and other essentials. When you have the opportunity to get your home loan top up or home loan balance transfer from reputed financial institutions like PCHF, you can be rest assured of a hassle-free procedure.

Summary

Buying a home is a huge financial responsibility and once you have taken a home loan, it is imperative to review your loan from time to time. There are a lot of advantages that come along with reviewing the loan such as saving by foreclosure or part payment, balance transfer to a lesser interest rate option and also meeting expenses during financial crunches through top-up. Top up and balance transfer from financial institutions like PCHF gives you the flexibility of getting the best rates in the market without any hassle.

[Also Read: Should you Consider getting a Home Loan ]

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