Does Your Home Loan Have These Merits to Their Credit? - It is good time to finally be able to buy your own house and fulfill you dream. And to make sure you would take step forward in your dream home, there are many public and private banks who offer you home loans. Such type of loan products are meant to facilitate financial aid needed to buy or develop a property. Considering earlier time, it is a lot easy to apply and get quick approval on your loan application. Such loan products are ideal as it let you borrow fund required to renovate or expand the existing land plot you could have. We understand how big the deal is for you to buy your own home and be free from monthly apartment rents! So you should invest time and efforts to find most ideal home loan product that would suit your needs. It is crucial too, as monthly installments would likely to affect your monthly budget and other financial calculations. And to end up with ideal home loan option for you, make sure your loan product should have following merits:
- Options to choose tenure period: Choosing right tenure period on home loans is equally important as the rate of interest. It would be better if you assess your monthly budget and choose suitable EMI option. Hence make sure your loan lender you chose offer you wide range of tenure periods to choose from. Most finance experts would suggest picking a shorter tenure period as you will be paying less interest payout. But at the end, whatever your monthly budget suggest!
- Variable interest rate: If you thought finding home loans product with less rate of interest would be the only struggle, opt for Variable interest rate. It fluctuates with the market and in accordance with national cash decided by Reserve Bank of India. This can be favorable as you will pay less in interest rate amount on the home loan if situation in market changes!
- Repayment option: In case if you prepay: Throughout the life of your loan, you may be fortunate enough to receive an excess of savings, whether from salary boosts or less spending. Most people use this opportunity to repay big lumps off their mortgage. So make prepayment and lessen the burden of your loan. Most of the loan lenders offer option on home loans to prepay your principle amount before tenure period gets over. Some private loan lenders would also offer reduction on interest payout as a reward.
- Line of credit: Whether you are renovating your house or building new project on plot, you might need more funds to bring important changes to bring new development. Some home loans lender offer option to use it as the equity of your home for other purposes. Although different loan lenders offers different limit of credit but just make sure to inquire such option. This merit can allow you to borrow from your home loan to spend or invest. But know this fact that it could extend your home loan even further.
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