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5 Essential Facts You Must Know About Home Loans
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Home loans, also referred to as housing loans if availed with the right understanding, ensure you the hassle free experience you are on a look out for. It is important to have the knowledge of the essential facts associated with house loans as it is not in the approval of the house loan alone where the good experience lies. Here are the 5 essential facts giving you an insight from the expert’s prospects.
You can negotiate the interest rates
Interest rate charges by the financial institution is based on the base rate declared by the Reserve Bank Of India and the margin rate added to the same by the financial institution in keeping with their cost of operations and profit margin. Whether fixed rate of interest or variable rate of interest, the financial institution has the capacity to offer you a rate of interest that is apt for you.
You must ask your financial adviser to prepare documents in a manner, the financial institution considers your points of negotiation and its validity.
You may opt for higher EMI over longer tenure, at the time of change in interest rate
The financial institution has to do a lot of paperwork and EMI recalculations when the interest rate changes in order to cater to their house loan clients. They thus offer you the option of availing the loan for a longer tenure while keeping your EMI same. You must speak with your advisor then or take a decision based on the number of years since you have been paying the EMI. If you have paid the EMI for more than half your loan tenure, then you must opt for a change in EMI rather than agreeing for a longer tenure period as you surely do not wish to pay the interest amount over and above the feasible amount. And if you are in your initial years of the loan tenure, then you may opt for longer tenure as you can then keep to your financial planning.
You can calculate your EMI as per your budget
You must use the online EMI calculator to decide on your housing loan EMI in keeping with your expenses and financial budget. It is convenient and simple to use.
You can sell your house for which you have taken home loan provided the buyer pays the amount in full
Yes, you may sell the house for which you have availed a housing loan. Ensure you consult the legal advisor for the required paperwork and to check the new buyers credit score and others as a safeguard. The buyer is to make the loan repayment in full prior to the change of name in the property deed paper. The new buyer may opt to avail a housing loan on the same property as well.
You can request for repayment charge to be waived off
You should request the financial institution to waive off the repayment charges giving them reasons such as your timely EMI payments and others.
What makes a loan experience less dreadful is the ease of availing it and having a post approval cordial relationship with the financial institution.
Conclusion: Avail house loan with clarity doing the needful and you shall not dread them.
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