Are You Thinking About Taking The Home Loan?

Today the market of affordable housing is growing fast

. Likewise the number of people who want to buy home has also increased in some past years. Amongst these most of are youth who are getting good salary in very young age and want to possess their own home. As a result of this there is a boom in home loan market. But do you know what points you should keep in mind before you proceed for home loan. When you should be aware and where you should save yourself from being confused. Let's take a look at some points.

1 ) Good Financer - You should be in regular contact of your financer , hence your financer's customer care policy should be excellent . To know this your can contact the old customers of your financer or bank. You should also check the old records of company regarding how much benefit their customer s got on the rebate of interest rates and also check did this company increased the interest rate initially.

2) Big Amount of down payment would be much better - You should have some amount for down payment before you go for home loan. Big down payment amount means lower the amount of home loan and as a result of this EMI would be also less.

3) Which sceme is better Fixed or Floating - It is presumed that fixed loan are more costly over floating rates. But there is no assumption of interest rate in the case of floating. Hybrid loan combines the benefits of both. In case of Hybrid, Some amount of loan is based on floating and some is based on fixed.

4) Benefits of extending the time limit of loan - if your age is not too much then you can be saved from both , pre payment and more EMI. Instead the time limit of paying the loan will be increased and you won't have much burden.

5) Pre-payment is much better - If fortunately you acquire some funds through any source and you are in fix for choosing between the option of more EMI and pre-payment then pre-payment is the good option. Some people may agree with more EMI so they get more rebates on income tax on interest. Before taking any decision analyze carefully which is more beneficial between pre-payment and rebate on income tax on interest.

6) Think about refinance - If some other financer is giving you loan with much less burden in comparison to your home loan financer, then you can also think about refinance, however for doing this you will have to pay a fee. You will have to take the closing quotation from your current financer and provide it to your new financer. Closing quotation means how much principle is left and how much amount you have to pay for closing the loan account. Your refinancer will take over the loan account by giving the cheque of this amount to your previous financer . You will have to pay some pre- payment penalty to your old financer and some processing fees to your new financer.

by: Mamta Soni

POST COMMENT

Beautify Your Home With A Collection Of Abstract Art Paintings Is Size The Deciding Factor In Case Of Home Theater Speakers? 3.1, 4.1 Or 5.1: Which Home Theater System Is Meant For You? Website Development: Do A Little Homework Before You Start-up Finding The Best Home Theatre For Your Home Bi-fold Doors Aberdeen Is Widely Used In Home Improvement What Are The Complications Home Owners Encounter When They Do Not Install Insulation? The Reflection Of Your Home How To Find A Smart Home Inspection Company Is Reclaimed Flooring The First Step To Your Rustic Dream Home? Visit Atlanta To Watch Your Home Team Play The Braves Statistics Homework Help- What You Want To Learn? Best Wireless Ip Security Cameras For Home Security