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Debunking The Common Myths Of Home Loan Interest Rates
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Housing loan interest rates seem like a bewildering concept. Most people want to avail the lowest home loan rates in India. But, the concept is not clear enough for most people. Without understanding it well, how can you avail the best home loan interest rates? That’s why; it is crucial to debunk some common myths about home loan rates in India. Once you understand it, you can make the best effort to avail it.
Myth no 1: Lowest home loan rates are the best
The most common practice in Housing finance is to chase after the most attractive home loan rates. But, wait a minute. People availing the lowest interest rates get to opt for a loan with floating rates. They fluctuate with the economy, RBI guideline changes, market liquidity and many more factors. So, you may have to pay a significantly higher EMI in spite of availing the best home loan interest rates India. Yes, that’s correct. So, you need not get swayed by impressive numbers so easily.
Myth no 2: Interest rate is the best criterion to select a lender
As we just noticed, home loan rates can fluctuate with floating as well as fixed rate of interest. So, it is in your best interest to look for a right lender. A right housing finance company need to prioritize your interest. Most nationalized banks are known for their standard and strict housing loan criteria. You need a consumer friendly company like DHFL. Such organization can lend the requisite support. So, you need to take a look at entire housing loan package, including terms and conditions, to select a right lender.
Myth no 3: Lower interest rates is only way to avail lower EMI
Principal amount depends on the cost of the property. Home loan tenure depends on working years since that can number of working years can be maximum home loan tenure for most people. Therefore, most people believe that lower home loan rate is the only option available. Though, it seems that way, you have other alternatives available. You can choose a smarter repayment option like step up repayment option. This allows you to start paying less EMI, which eventually increases to become a bigger amount. Even balloon repayment option can be advisable, in this case. So, there are several ways to lower monthly EMI. However, getting a low rate of interest is not a bad way either.
So, break free from these myths. You can see the real big picture of a housing finance in India more clearly than ever before. Thus, you can avail a financially savvy loan for your dream home.
Author Bio :
The author is a seasonal writer on topics of finance and the home loan sector. Through her writing, she articulates aspects that are important to people availing facility such as home loan interest rates, documents, home loan eligibility criteria that help to make the best decision.
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