Home Loans - Tips and Tricks, You Must Consider Before Buying
Every person dream of a home for his family. But nowadays in the market, the prices of homes are growing exponentially. So it doesn't fit in every person's budget and they go for another option as Home loans. Home loans give you the opportunity to buy your dream home and pay the amount in the installments. But there are some things that you might consider before going to buy home loans. These areas -
Mostly we can categorize home loans into two categories. The first one is fixed rate loans and the second one is floating rate loans. In the first type of loan, the interest rate per year remains fixed that is decided by your bank at the time of loan sanction. The second type of loan interest rates changes according to the benchmark rate.
Usually, home loans are connected to the fixed interest rates or floating interest rates. The interest rates are decided by the banks but the basis of MCLR (Marginal Cost of Fund based Lending Rate). It is the least interest rate that every bank should follow. For example, if the MCLR is 8% then you can get the home loans on the interest rate of 8.40%.
Every loan comes with some paper works and other additional fees rather than the interest rates. These charges referred as the legal fee, processing fee, taxes and other administration charges. These charges vary from 0.25% to 0.5% that depends on the bank.
There are plenty of options are available in the market that provides the home loans. So if you have chosen one plan then you should compare that plan with the other bank's plan before buying the same. Also, you should check that it fulfills all your requirements and budget or not.