Taking a home loan is one of the biggest financial commitments that you make, due to the high amount involved. Hence, this decision should be made after careful evaluation of all factors. The most important factor that you should take into consideration before applying for a home loan is your EMIs.
When you are calculating your home loan EMI, ensure your financial life is not adversely impacted due to the home loan. Take into account all the factors that can have a direct influence on your home loan EMI. The first thing that you should keep in your mind is interest rates. If you have taken a home loan at floating interest rate, there would be a change in the EMIs depending on the prevalence rates in the market.
Whenever there is a dip in the bank rates, your EMIs will reduce significantly. Also, they do not involve prepayment penalties. Next is your loan tenure. A change in your loan tenure can have a great impact on your monthly installments. The longer the tenure, the lower will be your EMI and vice versa. Further, it is highly advisable to check the pre-payment clauses with your lender before you sign the loan agreement.
Lastly, home loan borrowers can shift their home loan to a different lender to avail a lower interest rate benefit through a home loan balance transfer. Hence, there can be several factors which may impact your EMI during the tenure of your home loan. Carefully compare all the home loan offers available to you before making your final choice.
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Buying a home is a dream for many of us, but due to the high prices, only a few can afford to pay such a whopping amount. In such situations, buyers turn to banks for home loans. However, opting for a house loan is not that easy as the EMIs last for at least a decade and add to the burden for a majority. But, don’t worry, we have listed a few tips that can help you to repay your home loan faster. You can opt for a higher EMI. It will help to reduce the loan tenure which means that the total interest that you’re supposed to pay to the lender also goes down. Further, home loan buyers also have the option to prepay the entire or part of the outstanding loan amount. Windfalls like bonus or maturity proceeds from insurance policies should be used to prepay a part of the home loan from time to time.
Next option is that you can opt for a balance transfer. Under this option, you can transfer the entire outstanding loan amount to another lender at a lower rate of interest and other better terms and conditions. Lastly, you also have the option to maximize the down payment. Making a higher down payment when obtaining a home loan can reduce the principal amount. A lower principal amount means lower interest and EMI payments. So, in case you are struggling with debt-burden, take into account the above-mentioned steps to reduce your home loan interest rate burden. Also, don’t miss your EMI payments as it can severely affect your credit score.
HDFC is the largest housing finance company in the country offering home loans at all customer segments across income, geography and property type. It offers loans to borrowers to buy, construct or renovate a house at attractive interest rates. You can easily apply for the home loan by visiting the bank’s branch or through various online aggregators. The steps involved in both the processes are almost the same. But, in the case of online aggregators, you can compare various loan products and offers, and choose the one meeting all your requirements. The loan representative will guide you through the entire loan process. To apply for a home loan, visit the bank’s branch or online loans marketplace.
Fill in the application form containing your personal and employment details. Submit the documents. Post this, the HDFC’s representative will call you for the verification of documents. Then you will receive a sanction letter from HDFC mentioning the details of the loan. The sanctioned amount will be credited to your bank account. Once done, you need to hand over the original property documents to the bank. In case of the offline process, you need to visit the nearest bank’s branch. The HDFC’s representative will help you out to fill the home loan application and you will be required to submit important documents to complete the loan process.
Hence, availing a housing loan from HDFC has become easy due to online processes. You can sit back at home and apply for the loan without any hassle.
Home loan is availed for a longer period of up to 30 years and is a big liability, so, it is very important that the loan is affordable. If the loan repayments are unaffordable, then the borrower might end up in a debt trap. In order to assess the affordability of the home loan, you can use the Housing loan EMI calculator available online free of cost. EMI calculator requires three inputs:
Loan amount, the rate of interest applicable and tenure to calculate EMI schedule. There are many benefits of using an EMI calculator: With the help of an EMI calculator, you can estimate your monthly repayments instantly and can assess your affordability.
If you find that EMIs are not affordable, you can reduce the loan amount or increase the tenure to make them pocket-friendly. EMI calculator provides you a complete EMI schedule. You can also see the statement of the outstanding balance of your home loan after each EMI payment.
EMI calculator is very easy to use and you can also compare EMI of different lenders. So, before you apply for a home loan you should use the EMI calculator available online free of cost, to calculate your home loan EMIs and to ensure that they are affordable.
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Purchasing a house of your own can be quite stressful due to the rising prices of the property. But, if you keep few things in mind, you can get a home loan without any hassle. First of all, you should check your credit score. A score of 700+ is considered suitable for a home loan.
If your credit score is good,banks will give you a loan at attractive interest rates. Next, you should compare interest rates across various lenders. Interest rates varies widely from lender to lender, so explore your options. Also, check for additional charges such as administrative and service charges or processing fees before applying for a home loan. Keep all the important documents ready before applying for a home loan. This will help to speed up loan processing.
Further, ask questions if you have any doubts, because it is very important to know every term and condition mentioned in the loan agreement. For your satisfaction clear out everything beforehand and your dream home will be yours in a hassle free manner. So, if you are planning to take a home loan,make sure to consider the above-mentioned tips for easy approval of your loan application.
If you are considering when and how to apply for a home loan, don’t worry, MyLoanCare Home Loan is here to lend a helping hand in your home loan search process. MyLoanCare is one of the most trusted and bank neutral platforms that allows you to analyze and compare various home loan deals offered by top banks and housing finance companies in India.
It works closely with the partner banks to get the best home loan offers, attractive discounts, lower interest rates and a superior customer service. Some of the leading home loan partners are SBI, HDFC, ICICI Bank, Axis Bank, Citibank and PNB Housing Finance.You can use the home loan EMI calculator on their website to assess your repayment capacity. You also have the option to use the home loan eligibility calculator which enables you to view the types of home loans you are eligible for and helps you assess your eligibility for home loan online. MyLoanCare offers completely free, doorstep services to make the process hassle free and easy for the customers. Also, you get the best home loan quotes based upon your requirements. To apply for a home loan, you can visit myloancare.in or download our app MyLoanCare from Google Play Store.
Also Read : Home buying just got easy with MyLoanCare—a reliable Home Loan finance company
Refinancing your home loan means replacing your existing home loan with a new home loan with different terms and conditions. If you feel your existing rate of interest is high, then you can opt for refinancing your home loan. Besides interest rates, there may be several other factors, such as the desire to increase your loan amount or tenure, unsatisfactory service from existing lender, etc. which may prompt you to refinance your home loan.
Following are some of the important things you need to consider before you decide to refinance your loan: Choose to refinance your home loan only if the new loan is offered at a lower rate of interest as it will help in savings on cost in the form of reduced interest payment. Different costs are also involved in refinancing your home loan. The various types of cost include: processing charges, foreclosure charges, legal charges, and application charges for the new loan. So, always compare costs and benefits, and opt for refinancing only when benefits outweigh costs. If due to higher EMI, you are finding it difficult to meet your expenses, you can choose to refinance your loan with a new loan of higher tenure to reduce your monthly EMI. Home loans are offered at both floating rate and fixed rate.
After thoroughly studying the economic conditions, you can choose the suitable option for you. The decision to refinance your home loan has long-term implications and should not be taken in a hurry. So, things you choose to refinance your home loan only after a detailed comparative analysis of aforesaid things.