Home Loan Interest Rates Arent All That You Need To Consider

One point that every user agrees on is that opting for the perfect housing loan interest rates is very important. The interest rate tends to be most borrowers’ first criterion for loan selection. Lack of information, though, leaves most borrowers consenting to a home loan that is not in their best interest. So, why is it important to pay equal attention to other aspects of home loan?

First of all, the type of home loan affects the amount of interest and EMIs that you pay in the long run. For the most part, interest rates vary substantially if you opt for floating interest rates. The low and doable interest rates will basically hike up and make it challenging to pay your EMIs. Fixed interest rates, on the other hand, can vary after a stipulated time frame. Keeping all this in mind, it is important to pay attention and select the type of rate that you can comfortably pay.

Secondly, you must consider the term of your loan. A housing loan is the longest financial contract taken up by most people. Most EMI calculators will show you that a longer duration may imply lower EMIs. This, however, also means that you pay more amount as interest. So, how much are you agreeable to pay as interest? How much EMI can you afford to pay? These factors make it important to carefully consider a home loan term before opting for it.

Thirdly, the terms and conditions need to be studied carefully. This is because the loan taken can impact your financial state over a period of 20 to 30 years. Would you want to pay additional EMIs and finish off the loan early? If you do, it is advisable to check the pre-payment clause in your home loan agreement. You may also want to top up your home loan for home renovation, which certain banks don’t allow. In terms of legal fine print, there may also be several liberties awarded to the bank or financial organization that you are unaware of. Therefore, it is best to take your time and read that huge document very carefully, preferably with a financial expert who could provide much clearer insights.

An important question that most people ask is if the home loan interest rates affect the amount you pay? Definitely, it is the first factor that affects it. But other factors like the type of interest rate, duration along with other terms and conditions also have an effect on the same. Therefore, it is necessary to make comprehensive and well-informed decisions. Sometimes, the loan which doesn’t have the lowest rate comes instead with the right combination of other factors that add up to a well rounded product that is customized to your needs.

Compare Shopping Is The Key To Find The Best Home Loan Rates

In this world, there are very few people who don’t cherish the idea of owning their dream home. Balancing this desire is the fact that this is one of the most expensive investments that you will ever make. A good way to achieve your dream is to find the best possible home loan. While there are several factors that can affect your home loan, the one with the most influence on the EMIs and your financial well being is the interest rate. While it may be tough to get the best home loan rates , comparison shopping is the quickest way to understand which home loan suits you best.

When you start looking for property based on your financial details on a real estate web portal, you get a list of banks and private housing finance companies to choose from. This list comes with all the major factors that are taken into account for loan approval. It also provides you with the home loan interest rates that organizations offer. All this information helps you to prioritize easily and eliminate inappropriate options as well. While it may seem like a trial and error process, comparison shopping presents you with a list of organizations that are most likely to approve your home loan.

This tool also helps you to account for other factors. For example, the type of home loan interest rates affects the EMIs and amount of interest you will have to pay. That is because both floating as well as fixed interest rates have their own set of benefits. With comparison shopping, you can assess respective home loan products that various organizations offer, holistically.

Websites that offer this service also let you see the list of banks and housing finance companies that provide housing loans. One way to go about your loan is to limit your applications to just these organizations so that you can save the non-refundable processing charges too. As a third-party website, they also offer other features that can help the customer to choose the best home loan. You can compare several loans and check how changes in other factors affect the potential loan products. You can also check their blogs, use their EMI calculators, e-approvals, etc for detailed home loan advice.

All in all, compare shopping is a good way to start your research to identify the most suitable interest rates. You should also understand, though, that there are factors that cannot be compared online. Most organizations are open to interest rate negotiation. But these negotiations are always done one-to-one. If you are eligible, then it is possible for you to negotiate with the home loan officer of the respective organization. It is thus advisable to find the most likely lenders through compare shopping and then proceed ahead.

Opt For The Best Home Loan Rates In India

Financial advisors often tell you that, “there are several important factors for a home loan. Yet none is as important as your home loan interest rates.” The point is pertinent, as these rates impact the total amount of interest as well as the EMIs. Keeping this in mind, it is important to ensure that you have chosen an organization that offers the ideal home loan rates for your loan. Here are a few ideas to help you to get the best housing finance:

Research: With a wealth of home loan information available online, you should conduct a thorough research while identifying the right course of action. You should also ensure that you have a good credit score. Even if it implies that you need to pay off some minor credit card dues or a personal loan before hand, the effort is worth it in the long run. You should also ask questions online as well as to local bankers and financial experts. All this will help you to identify the most receptive housing finance organizations with the best home loan interest rates .

Financial expert: A third party expert can always be consulted for better insights. You can make better decisions with the help of the right expert by your side. It is important not to rush into this decision, though. You should hire one only after your own research is complete. Find one with enough experience and contacts as well. A good financial advisor can also help you to negotiate interest rates efficiently and can serve as the most rewarding benefit of third party services. Most experts can even help you to analyse the terms and conditions related to your loan.

Apply to several organizations: It is important to search for a home loan across nationalized banks, private sector banks and other housing finance companies. Applying in several organizations improves your odds of getting the right home loan offer as quickly as possible. While it may seem like an expensive choice, given that each will charge you non-refundable home loan processing fees, it does speed up the process. As most home loan processes could take about two weeks or so, it’s best to apply simultaneously and save on precious time.

Other factors like the type of interest, the loan tenure and the terms and conditions will affect your loan. With the best possible rate in hand, though, it is much easier to work with other components. While this doesn’t imply that you should ignore other factors, it does mean that you should prioritize all the factors based on your financial situation such as income, assets and liabilities. A good home loan interest rate along with other compatible factors will add up to a good deal for you.