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

Debt Management for Personal Loans

Personal loans can offer individuals a way to have the funds for an array of uses. Some are necessary while others are for pure enjoyment. It is important that you consider the financial obligation that comes with personal loans. Too often, individuals access money quickly then struggle to repay it. If you don’t have a good budget in place you may find yourself unable to make the payments on your personal loan. An area where many individuals get into trouble with personal loans is debt consolidation. Within a year most people who use personal loans for this find themselves in even worse financial shape. This is because they have not altered their spending habits any. The result is they charge their credit cards up to the limit and now have those payments to make again as well as a personal loan payment. They may soon find they are drowning in the swimming pool of debt. Enrolling in a debt management plan may be a great alternative for you to help you meet your financial obligation...
1 comment
Read more

Used car loans tips

It is really a tough deal for loans of buying a used car (second hand) comparing to other types of loan in case of purchasing a new car. But if we look forward, it will make some possibilities also. The procedure is almost same like any other car loan facilities. The main difference in this kind of loan is that you can save cost, which you cannot do in other car loans. That is the biggest benefit you can have while getting used car loans. However, the problem is always there, so while you want to have used car loan facility you have to be aware of making your every step. Every step is vital otherwise you may be in bad credit reputation and big chances to be ripped off. Be positive in getting the source of used car financing and do shop around the whole market. Try to do the credit check to be assured that the given information is correct in your credit statement. After choosing the car you are going to purchase, look into the whole payment procedure of the purchase money. Always...
Post a Comment
Read more

What are Interest Only Home Loans – Simplified Facts on Interest Only Home Loans

What are interest only home loans.   ‘Interest only home loans’ means that the borrower ends up paying only the interest for some years and then the principle amount is added later for years.  This has risen as a better option for many who are not in position to pay large amounts as EMI’s in present years. Usually for homes bought in construction phase, you keep paying small amounts of interest. In this type of offer the lender gives money to the borrower and the purchase deed is completed. The borrower becomes the owner of the house. Every month he has to pay a small amount that is interest to the principle amount (loan amount). During later years, as    the construction progresses and the housing complex is ready   he has to pay the interest along with large sums of the principle amount. This option may be good for individuals who are highly qualified and have a new job and they know that over the years their salary is going to increase with their experience....
Post a Comment
Read more