What to Do When Home Loan EMI Gets Higher Than Expected?

Most of our home loan decisions are hinged to your home loan EMI. But, your dream home is worth every effort. So, you are going to need some smart strategies to handle a surprisingly higher home loan EMI effectively. It won’t be easy. But, handling a higher home loan EMI is worth the effort for two reasons. Firstly, you can remain a responsible borrower, which doesn’t damage your credit score. Secondly, you can transfer a home loan when you get a beneficial home loan balance transfer offer. This offer is not available to people who default their loan. So, smart borrowers use all the tools in their kit to manage a high home loan EMI.

Extend the tenure

A borrower can visit a home loan EMI calculator and find out how an extending tenure will lower the EMI. There are as many home loan calculations as you would like. This is the smartest and quickest move if your home loan EMI has gone higher than you expected. Several housing finance companies allow you to extend home loan tenure quickly and easily.

So, this won’t go wrong for young borrowers since they have long active careers ahead of them. But, people in their 40s may not be able to extend their home loan tenure as they are approaching their retirement. But, borrowers in their 40s can prepay a certain amount using your current assets. This can enable them to extend their home loan and lower current home loan EMI.

Restructure the loan

Most people calculate their home loan EMI with home loan EMI calculator. They can run a lot of probabilities. But, most home loan EMI calculators in India do not include the repayment options. But, several home loan EMI calculators can help you incorporate different repayment options. Use them to see how repayment options affect your home loan EMI. If you do not find a suitable home loan EMI calculator, you can utilise the calculation formulae. They are easily available online. This can be a very effective way of lowering home loan EMI if you are in a jam. Restructuring your loan can take care of a pressing need for a long term. Consult with your relationship officer home loan consultant or to discover how to make the most of this choice.

EMI calculator will give you a quick understanding of changes we can make. A smart housing loan borrower will run enough home loan EMI calculations to select the best option possible. These options will allow you to breathe easy during near future. Take due caution to understand long-term impact before making any changes in your home loan agreement.