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The interest rates on your home loan are subjected to change when you have chosen floating interest rates.<\/p>\n

In the past years, home loan rates have been increased by several basis points affecting the budget of thousands of borrowers.<\/p>\n

So, you must be thinking about solutions to deal with this tricky situation.<\/p>\n

What might help you is that although changing interest rates may negatively affect your financial plans, there are several ways that can help you to tackle such a situaion.<\/p>\n

Here are the five ways that would help you to effectively manage the interest rates.<\/p>\n

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Pre-paying the Loan<\/strong><\/h2>\n

This one of the most effective way to reduce the burden caused by the home loan.<\/p>\n

You can do this by directing the money from your other investments to repay the housing loan.<\/p>\n

If you have surplus funds available, you can always use them to prepay the home loan and finish it before time.<\/p>\n

Prepaying the home loan will help you reduce the home loan interest rates<\/a> as you will be repaying it before decided tenure.<\/p>\n

Just one thing you need to pay attention at is that some lending institutions charge pre-payment penalties on this type of payments against the home loan.<\/p>\n

These fees might be expensive, and you will end up paying more amount than required.<\/p>\n

However, many banks do not charge pre-payment fees at all. So pre-paying loans becomes an excellent option to manage your home loan.<\/p>