How to get a better home loan Emi rate?

Recently some major banks and financial institutions have reduced their interest rates for new customers who want to avail a home loan. Asa matter of fact this year the banks and the housing finance companies have been passing the rate cuts to the home loan takers.

For a home loan borrower to actually decide to take a home loan is a very integrated decision.That is because it is a large ticket size for the individual. You have to do your due diligence check in the real estate project for which you are applying for the loan. When you are looking for some financing of the project you have to shop around and make sure that you are making the final decision
you should also pay attention to the rate that is being offered to you and whether it is 6 months or1-year marginal cost of funds based lending rate (MCLR). There are multiple home loan EMI calculators available online, you could very well make use of that and check the Emi that you would be paying. You have to take all these factors into consideration before the rate is finalised. You also have to delve deeply into the proposal of the bank completely in terms of processing charge and the insurance cover; you have to know what it covers exactly and what it doesn’t. Whether it covers just the loan amount or whether it covers the home as well. You should also take the track record of the lending financial institution into consideration in the interest rate policy. Of late, every lender is actually trying to give out the best and everyone is trying equally hard. In order to check and compare what would be the EMI of your home loan you can make use of the online home loan EMI calculator and then compare the EMI with that of the other banks and financial institutions.

The home loan borrowers should also be very careful of the hidden charges. The buyers have to be careful about who has looked into their project and paperwork. The homebuyers should also look into the interest reset clause whenever they are taking the loan. Many times the financial institution that is giving out the loan tries to match the EMI with that offered by the banks with the lowest interest rates. In the process, they actually try to match the EMI but the tenure for the repayment may become longer.It is always sensible to look at theEMI and the tenure together. In order to calculate your EMI for your home loan, you can always make use of the home loan EMI calculator. In the case of someone who has already bought the house through a home loan and is paying the EMIs, some of them are not aware of the market interest rates. They keep on paying the same EMIs even if the interest rates are low. In such cases the borrower should go out into the market and check the prevailing interest rates and if on case the interest rates in the market is low than what you are paying you should go to your financial institution or bank and ask for the lower interest rate, most of the financial institutions or banks will ask for nominal fee and your interest rates will be reduced.

The homebuyers should also look into the interest reset clause whenever they are taking the loan. Many times the financial institution that is giving out the loan tries to match the EMI with that offered by the banks with the lowest interest rates. In the process they actually try to match the EMI but the tenure for the repayment may become longer.It is always sensible to look at theEMI and the tenure together. In order to calculate your EMI for your home loan, you can always make use of the home loan EMI calculator. In the case of someone who has already bought the house through a home loan and is paying the EMIs, some of them are not aware of the market interest rates. They keep on paying the same EMIs even if the interest rates are low. In such cases the borrower should go out into the market and check the prevailing interest rates and if on case the interest rates in the market is low than what you are paying you should go to your financial institution or bank and ask for the lower interest rate, most of the financial institutions or banks will ask for nominal fee and your interest rates will be reduced.

 

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