ALL >> Investing---Finance >> View Article
The Importance Of Home Loan Terms And Conditions Knowledge
Total Articles: 291
Buying your own home is a big decision. With prices skyrocketing, being able to afford your own apartment is virtually impossible. That’s why; NBFCs and banks play such a vital role in the process and fulfill dreams of several people in India. They provide an opportunity to purchase your dream home and repay the pending cost over a predetermined tenure. However, you need to hold your end of a bargain and adhere to home loan terms and conditions and repay home loan EMI regularly. Which housing finance terms and conditions you need to know about? Explore them in detail through this article.
To prepay or to not to prepay:
Most housing loan borrowers intend to prepay and complete the tenure in advance. But, it depends on several factors. What is the prepayment rate for your house loan? When can you start the prepayment process? Is the rate affordable enough to prepay loan cost effectively? You will need to know these details if you have availed housing finance with fixed interest rate. But, these housing finance terms and conditions will defer with a floating or hybrid rate of interest. So, take a holistic look at these factors before making a decision.
Change is permanent:
People need to change their housing finance agreement from time to time. Some people need to foreclose their loan before the tenure is incomplete. Some people need to restructure their housing loan repayments to lower the stress of EMI. Others need to reschedule their repayments as per the salary increments. So, most borrowers need to accommodate their EMI as per the change in their lives. With the right strategy, you can make the most of these terms and conditions.
You shall pay what you owe:
Each and every borrower needs to know about the fees and service charges that will be implemented. Borrowers will need to pay for defaulting home loan EMI. They will also need to pay for insurance, CERSAI charges, and few other miscellaneous charges. You cannot circumnavigate these charges since you have agreed to pay them as per the house loan agreement. That’s why; borrowers must read the terms and conditions before signing the agreement.
Each housing loan is an opportunity to fulfill a dream and a commitment to repay. That is a core foundation of housing finance industry in India. So, a borrower cannot enter this long-term financial commitment without a holistic understanding. Regulatory bodies invest into these practices to ensure a useful housing finance system in India. Reciprocate to it by following your end of commitment religiously.
Author Bio :
Investing / Finance Articles1. How Benchmarking In A Business Helps In Reducing Labour Hire Costs
Author: Dylan Munro
2. India Inc May Need To Change Rating Agencies Every 3 Years
Author: Suraj Pratap Malik
3. Bitcoin Workshop | Bitcoin Seminar | How To Buy Bitcoins
Author: AB Web Technologies
4. Online Financing - The Modern Way Of Investment
5. Selling Assets Versus Sme Loans: Which Is The Better Option?
Author: Manish Damani
6. Equity Research Report
Author: Chetan Rathod
7. Personal Loan Calculators Explained
Author: Arwind Sharma
8. Importance Of Having A Bank Account In The Digital World Today
Author: Sushant Singh
9. Step By Step Guide To Gst Registration Of Your Business
Author: Amol Kale
10. Forex Trading Techniques And Strategies For Beginners In Forex Market
Author: Sophia Mason
11. Are Tax Accountants The Most Important Hires For Your Small Business?
Author: John Panayis
12. Personal Loans - All You Wanted To Know
13. How To Ensure Your Internet Banking Is As Safe As Traditional Banking?
Author: Neha Sharma
14. How Can A Bank App Help You Safely Execute Your Financial Transactions?
Author: Neha Sharma
15. Virtual Banking: Evolution Of Traditional Banking And How You Can Benefit From It
Author: Neha Sharma