Interest rate the other important things

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Home loan
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Better to invest in EMI than rent Traditional
lenders had made lending money at high interest
rate in a short time a schadenfreude business.
With those bitter experiences from the past,
individuals preferred to skip the essentials than
counter a lender. But todays scenario is totally
different, you can dare to purchase a beautiful
home by taking a loan. Home loan is the kind of
loan provided by the financial organizations to
the borrower for purchasing an already/under
construction flat/ home, a plot of land or
renovating/re-constructing an old structure. The
lending institutes provide the loan amount at
competitive rate of interest for a stipulated
time.
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The borrower can be an Indian resident or NRI
he/she can be a salaried or self employed person.
There are several organizations in the market
that have come up with the loan help and tailor
the whole process according to the borrowers
convenience. It is wise to select the best and
reliable one who suits the borrowers purpose.
Its not necessary that the one providing the
home loan at lowest interest rate will be
user-friendly or will providethe best services.
With the advent of online banking facility, most
of the lenders are reaching you in single clicks.
You get the best options served at your
convenience with your diligent selection.
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Before selecting the financial partner the
borrower should keep the following factors in
mind The organization must provide the maximum
required amount, which could be 60-90 of the
property value, rest amount the borrower has to
pay as down-payment. The rate of interest should
be in harmony with the market rates. Loan tenure
should be sufficient for the borrower to pay back
the amount. Flexibility in repayment
options. Options of prepayment without penalty
should be catered to the borrower. Processing
charges should not pinch the pocket.
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Aforesaid factors can guide the potential
borrowers to choose the partner for home loan,
but it is wise to lock the deal after good amount
of research and field work. Be thorough before
investing as it is not a one day affair, rather
its more like a companion for life. A single
careless step can topple this beautiful
venture. After taking the loan, its better to
repay the amount at the earliest to avoid
dragging the tenure and paying a huge sum as
interest. The initial part of the tenure
basically consists of the interest payment, after
that borrower pays the principal amount. Pay the
majority portion of the principal amount to lower
the EMI and cut-short the tenure. Maintain a good
credit score to grab the best competitive rates.
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The EMI is determined after taking into
consideration the principal amount, interest on
the outstanding amount and number of
installments. More the loan tenure, lesser will
be the EMI, more the principal amount more will
be the EMI. In order to lessen the EMI burden
its not wise to prolong the tenure, unless you
have no other option. Else you end up paying huge
chunk as interest. So plan the loan process
diligently. Take the help of online services to
arm yourself with beforehand knowledge of types
of interest rates fixed, floating/adjustable or
truly fixed rate. Prepare your budget for down
payment and the monthly budget for paying the EMI
with home loan EMI calculator. Take the help of
the opportunity and head towards accomplishing
your dream venture of buying a home. Its better
to pay the EMI and own a house than paying a rent
and wasting the money.
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