What You Must Know About Home Loan Interest Rates

By Author: Neha Sharma
Total Articles: 108

There are several home loan packages available in market today. But, you need to select right lender and right package to repay your loan comfortably. In most cases, the first factor you need to consider in home loan is their interest rates. If you take some time out to see Home loan EMI calculator, you will realize how even a small decimal point fluctuation in home loan interest rates can affect your EMI. Therefore, you need to be well informed about this aspect of housing loan. So, here are three facts you must know.

Fixed interest rates can be better.

Current trend in housing finance industry reflects that floating interest rates are a preferred choice than fixed ones because they are relatively lower. Did you know that HDFC bank has recently launched a 10 year fixed interest house loan package at 10.25%? Frankly; very few borrowers can get a housing loan at aforesaid rate with floating type of interest rates. So, you must not decide about these facets of housing loans based on just information available online. You must research the lenders and their current offers you can qualify for. You will be surprised to discover that none of the details of housing loans are set in stone. You just need to find a right one.

Know your limits.

Process of hunting for home and housing loan is very tedious and extended. At times, it wears you down. Some borrower land up making a mistake of accepting home loan with interest rates they can barely afford. You must know when you have to say no to lender. You must calculate your current income, assets, liabilities and other dues to know EMI you can afford. You should not step beyond your threshold of affordability. This can affect you very adversely if there is any spike in already strenuous home loan interest rates and EMIs.

Don’t obsess over it.

You stand to save a lot of funds if you find the cheapest home loan in India. That’s common sense. But, you mustn’t get obsessed over it because there are several other factors in the picture and they can affect your repayments just as well. You cannot turn blind eye to them because you are looking for lowest home loan interest rates possible. Take a look at these factors too because they are all interlinked with one another.
• Repayment option
• Prepayment charges
• Tenure
• Processing charges

Be cautious and smart with your housing loan details as you will select the loan package that you can repay comfortably.

Author Bio:- Neha Sharma is a finance student, who loves to write in her free time. She has great understanding of financial products like home loan. She offers information about home loan interest rates, tenure & prepayment changes to share her interests with other people.