Facts that Affects Housing Loan Interest Rates |
Posted: August 6, 2018 |
If you ever find a genie, what wish you will make to him? If you will ask me, I will not ask for cash or clothes or take me on a world tour! I will ask him to gift me a nest that I can call my own – my own home where I can rest and soak in the feeling of ultimate bills, security, and warmth. Dreams and fantasies apart, it is the ultimate wish of every Indian to have his or her own home. However, it is the financial crunches that do not that let people fulfil their dream with their own savings and income. Not anymore, a Home Loan is a unique facility offered by known lenders at the lowest Home Loan interest rates. Yes, if you can determine your Home Loan eligibility, and have a strong CIBIL Score and repayment history, you can borrow as high as up to Rs.3.5 crore. Before you go ahead and start applying for an online home to buy your dream home, you need to consider some factors that can affect the Home Loan interest rates. You need to consider some elements that can increase or decrease the housing loan interest rates as it will also affect the EMIs and your monthly income accordingly.
Knowing these factors can help you improve your financial profile to grab an inexpensive Home Loan so that you can repay it off without poking your own pockets. Check these Factors before Applying for a Home Loan
Anyone having a strong CIBIL Score of above 750 or more can avail a Home Loan approval at a lower rate. If you have managed to maintain a clean repayment history by paying off the credit card bills and existing loan EMIs on time, you can enjoy lower housing loan interest rates. Thus, the Credit Score being lower or higher can affect your Home Loan interest rates easily.
Lenders can give you a Home Loan tenor varying between 20-30 years, and if you opt for a longer tenor, you will spread the cost of the loan and pay smaller EMIs. It is good to do that but having loan obligation for long will ask you to pay more compounding interest rates. Thus, the selection of the tenor can increase or decrease the housing loan interest rates.
If you can put down a higher amount as the down payment for your Home Loan in the range of 30-50%, you will be able to save on interest payments. Yes, when you will put down a larger amount as the down payment, you will pay lower interest and smaller EMIs on the remaining loan principal. What’s more, it will also help you pay off the loan super quick.
You can try to make one or two extra EMI payment during a financial year and bring the house loan interest rate to a lower level. You can utilize the yearly bonus or any other source of income to make extra EMI payments towards a housing loan.
If you are financially well to do, or if you receive some bigger amount, you can make some prepayment and bring the housing loan interest rates considerably down. Making prepayments is a good idea when your loan is in the initial phase as making a prepayment later when you have paid a large portion of the loan already is not good. The Bottom Line Assess your financial profile now and know if the discussed factors will affect the housing loan interest rates or not. Once you are done, then only apply for a Home Loan online and grab it at a lower rate so that its repayment is never a burden on your head!
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