Reason for selling a home and its alternate solution

Being in a state of uncertainty while selling a property can be very exasperating and can cause needless stress. Selling a property, which is considered a great source of investment, due to the wrong reason has a lot of downsides. A home owner should have motivational reasons for selling a property rather than being in a state of need and anxiety. It is essential and often rewarding to re-consider the decision of selling your property and have a talk with a real estate expert.

In this article, we evaluate the second top reason due to which people sell there homes and the alternate step for the same:

REASON FOR SELLING: High monthly interest loan payments on the home.

If one takes a look at the trends, it is quite apparent that the interest rates on loan have been fluctuating and at times people have ended up paying almost double the installments. When interest rates increase, the loan tenure and/or EMI go up. In the age of inflation, people at times are forced to sell their homes and buy a smaller one.

Alternative Solution: One can consider the option of refinancing the current home loan. The refinancing option brings with it lower interest rates and significantly reduces your monthly loan and/or interest payments. With most of the banks having recently announced rate cuts on loans, it helps you save significant amount of money by closing the high cost home loan and shifting to a bank that gives a lower interest rate.

You save time and money by shifting to a different bank with which the EMI remains the same; however, the loan tenure decreases. In other words, you have to give fewer EMIs and so there is a saving in perspective. Most of the public sector banks keep their borrowing costs low and provide attractive interest rates. However, make sure to check the processing fees of the new lender and the foreclosure fees of the current lender before making the shift.