A mortgage loan is among the most preferred credit options for borrowers because of its features like high loan value and flexible tenor. However, it is the mortgage loan interest rates which draws the borrowers’ attention the most. In general, these rates are relatively lower than most credit options. Regardless, intending borrowers can further lower the rates by following a few simple tips.
Follow these tips to secure lower interest rates on mortgage loans.
Most financial institutions prefer applicants with a CIBIL score higher than 750 and often offer them an attractive rate of mortgage interest rates. Consequently, one should repay their debt in time and maintain a clean credit history to improve their score significantly.
A higher amount of down payment attracts a lower rate of interest. For example, loan against property applicants utilizing the advance for purchases like house or vehicle should try to make a down payment of at least 20% to negotiate for a lower rate of interest.
Applicants who have a low debt-to-income ratio are more likely to get a loan sanctioned at lower mortgage interest rates. One of the ways to do it is by utilizing only 30 to 50% of the total available credit.
Job stability and increased flow of income indicate that an applicant can repay the loan amount in time without much difficulty. So, intending applicants should focus on getting a stable job to improve their earnings and their chances of getting a mortgage loan sanctioned at affordable rates.
Individuals must also compare the mortgage loan interest rates offered by different lenders to make an informed decision.
Follow these tips to secure lower interest rates on mortgage loans.
- Take steps to increase your CIBIL score
Most financial institutions prefer applicants with a CIBIL score higher than 750 and often offer them an attractive rate of mortgage interest rates. Consequently, one should repay their debt in time and maintain a clean credit history to improve their score significantly.
- Make a higher down payment
A higher amount of down payment attracts a lower rate of interest. For example, loan against property applicants utilizing the advance for purchases like house or vehicle should try to make a down payment of at least 20% to negotiate for a lower rate of interest.
- Maintain a low debt-to-income ratio
Applicants who have a low debt-to-income ratio are more likely to get a loan sanctioned at lower mortgage interest rates. One of the ways to do it is by utilizing only 30 to 50% of the total available credit.
- Opt for a stable and high-earning job
Job stability and increased flow of income indicate that an applicant can repay the loan amount in time without much difficulty. So, intending applicants should focus on getting a stable job to improve their earnings and their chances of getting a mortgage loan sanctioned at affordable rates.
Individuals must also compare the mortgage loan interest rates offered by different lenders to make an informed decision.
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