Planning to Take Home Loan: Things You Should Know

Planning to Take Home Loan: Things You Should Know

Everybody’s dream is to buy a home.  We plan and save a lot towards making this dream true.  We bring this useful guide on a home loan.  Read on to know all the details you should know about home loans:

Generally, you can get a home loan for up to 90% of the value of the proposed home you want to buy.  This also depends upon your income and age factor. Home loans are generally available for tenures ranging from 10 to 15 years.  Depending on the banker these may slightly vary.  However, take care of the following points while opting for a home loan:

 

  1. The right age to get a home loan: Any loan limits the age of borrower to 58.  At the most this can be extended to the age of retirement -say for one or two years.  The earlier you get a loan, you can get a large repayment tenure.  If you avail a home loan at least when you are 35, you get a reasonable long repayment tenure. If you postpone your loan this will be reduced.  Say at 45 years, bankers will not consider giving more than 10 years of repayment tenure.

 

The advantage of having a longer tenure is your EMI will be low.  Imagine paying 350 dollars per month for 15 years (or) 600 dollars for ten years.  When the EMI is too high managing your other monthly expenses will become tough.  So, plan and start saving early.  By investing in attractive options like Bitcoin code you can earn huge profits.  By the age of 30, this will enable you to pool a reasonable fund for repayment.

 

  1. Margin: Most banks require 10 to 25% of the amount to be borne by you.  The more income you earn, the lower margin they demand.  So, try increasing your earning capacity.  You can complete certifications to improve chances of getting promotion and hikes.  Or you can use your hobby to generate more income.  In addition to your regular job, you can start a business.

 

  1. 3. Interest: Check the market and get the most attractive terms for your home loan.  Opt for a floating interest rate since the interest rate trend is downward globally.

 

  1. Preclosure charges: Preclosing the loan will incur your loss if the charges are too high.  If you have proposed investments which might mature at future date, and if you propose to use these to pay off your loans, it is always advantageous to go in for a loan with a low preclosure penalty.
  2. Insurance: Most banks insist on personal as well as property insurance.  If you take up home loan beyond 45 years, certainly you will incur more towards insurance premium.
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