There is a chance of reduction in interest rates on home loans. This is attracting so many. The people are being busy in knowing the details about the home loans in banks. Is it good taking loans based on interest rates? What are the remaining details to observe?
Reserve bank reduced repo rate up to 25%. This is a good news for the people who are taking home loans. What is the need of repo rate before taking home loans? How much can we bear? What is the financial weight with EMI? Home loan cannot be cleared in 1 or 2years. Minimum 15-20years long term debt on us.
Now a days combine loan become usual. Both husband and wife are earning then there is a chance of getting more loan. How much they maintain other financial goals after paying home loan installment. You have to know these details before to make yourself comfortable when you are paying installments.
Score is also important…
What about the loans you already taken? How much perfect you are in repaying them? This all known through loan history, credit score. Credit score ranges from 300-900. It’s good to have above 750. Which allows you to eligible for loan. CIBIL report, your income, loan payments all shows the effect on your loan acceptance. Just take the whole CIBIL report to you and check before you plan to take home loan.
What about the interest?
The effect on Emi is based on the interest scheme on our loan. That’s why know about steady interest rates and moving interest rates. Monthly installments will be same if you choose a steady interest plan. Compare to moving interest rates steady interest rates are 2 to 3 percent more. It is beneficial to choose steady interest rates if you expect rise in interest rates in near future. If you choose moving interest rates EMI or loan period will increase according to the change in interest rates. So observe interest rates in different banks.
Observe the loan period…
EMI will be decided based on total loan amount, interest rate, and duration of loan repayment. EMI decreased by increase in duration and vice versa. So choose the duration based on your EMI capacity. One thing here to observe is interest weight will grow by increase in duration.
Just get clarity by asking…
Don’t sign everywhere without asking the details. It gives trouble in future. So be careful in this issue. Try to know what is there in it before signing. Know about verification fee, late fee and other charges.
How much is the loan?
Banks decide loan amount based on person financial status, past loan history. Normally they give up to 80% as home loan based on your property value. You may get 100% loan amount by considering place of buying home, your age, present income, future increase in income and other details. To know all these details there are many websites online. Or you can check in bank websites.