Skip to main content

Important Tip for the Intelligent Home Loan Borrowers

Home loans are available at a high rate of interest and the borrower has to pay back along with the principle amount the amount added as interest in the EMI. As the rates of property are very high so does the loan amount keep increasing and becoming larger and larger. With trends since many years regarding home loan borrowers it has been noticed that the intelligent borrower is always in a hurry to close down his home loan earlier than the repayment tenure in the home loan agreement.
Why is this trend going on and still all borrowers of home loans are waiting for any opportunity to close down earlier than the total repayment tenure date given in the agreement. Many times there is also a prepayment fees and penalty fees for closing down your home loan earlier than the predefined loan tenure but still people who have borrowed large sums as loan try to repay the loan earlier and as soon as they have extra funds or money in any form as bonus, increment or rise in salary.
Your EMI will have the principle amount along with the interest amount and this makes up the total amount of your EMI. Monthly, you as borrower of home loan have to shell out this amount regularly for say 15 to 20 years. So as the loan tenure progresses, so does the interest rate increase, and in the long run, this home loan becomes difficult for you to be committed for a large repayment amount. This not only creates undue stress but also sometimes becomes a burden to give away precious finances in way of interest to the housing finance company.
An intelligent borrower will first and foremost enquire about early prepayment and closing of the home loan and their terms and conditions. Before you commit to any housing finance company it is advisable to enquire about the prepayment and closure of loan rules and processing and penalty fees involved. Since most companies have a minimum 2% of extra fees this amount may vary from lender to lender.
As time will progress you may get additional bonuses and perks or unexpected rise and if you can collect the remaining home loan amount then it is best to repay your loan and take possession of your home documents at the earliest. You will not only save precious money which would have otherwise gone in terms of interest but you will also be free and have ownership title of your flat.
Labels:

Comments

Post a Comment

Popular posts from this blog

Get Easy Tax Concessions Bonus on Home Loans

Easy tax concessions are a added bonus with your home  loan. Purchasing a home has become the most sought   after   dream today. Our major salary can go in terms of repaying home loans. With property rates increasing day by day it is becoming more and more difficult to purchase a home even on loan. The principle amount is increasing and also the interest rate added puts a tight crunch on our monthly salary. Tax concessions and rebates come as a boon to lighten this burden a little bit. Is it possible to get tax rebate on the loan amount? Many of us are not aware that this is taxable income money and one can avail rebate on a certain amount. If all returns are filed regularly and all criteria for applying for a home a loan fulfilled then one can avail on tax rebate for a certain amount of the money taken as loan. The main criteria would be the loan has to be taken in the prior financial year and the project has to have a fixed date for completion. The possession of th...
Post a Comment
Read more

Home Loan Lenders Selling Tips Biggest Hurdle in getting Borrowers for UK Home Loans

Home loan lenders selling tips Biggest hurdle in getting borrowers for UK home loans as the market is flooded with houses and houses everywhere, people are not so keen on taking home loans   paying off in dollars.   People are hesitating to buy new homes and with few exceptions where money does not matter anyway the elite investors in property purchase flats for investment purposes, and need to divert their finance and what better way than in housing sector as this field has assured and guaranteed returns. Majority of people applying for home loans in UK are from the private sector and they may not have all the documents in place which leads them to search for those lenders who can offer them loans.   It would be better if the lenders would simplify their loan procedures and also ease out the formalities to minimum. As it is every one understands the fact that you will get a loan only when you are eligible for that, which means you have the repayment capacity. Still...
Post a Comment
Read more

Fresh New Developments in Home Buying and Home Loan Industry

There is a gradual change and slow movement observed in the home industry and home loans market. After the long silence it is a welcome change for the builders and the home loan finance industry. As we move in any direction east, west, south or north, Mumbai or the outskirts, everywhere we see constructions going on and even though here was a lull in the market since the past few years due to Government and Reserve Bank rules and regulations there is a welcomign change being seen now. As the government too has reduced the burdens loaded on the builders so also the home loan industry is offering new low price quotations and offers for the buyers and home loan borrowers.With reduced interest rates, and many warding off totally the prepayment penalty with new latest amenities offered at the same price per square foot the customers are preparing to make their move. Still necessity, an own  place to stay,  is the only decision maker and where customers are concerned. The investment...
Post a Comment
Read more