The appreciating property prices must have given you the heat of inflation when you planned to buy your own house, right? But the good thing is that the lowering house loan interest is helping the borrowers to turn their dreams into reality. The trending interest rates are the lowest in the home loan history, so it is better to buck up and join the loan bandwagon and create your own space before the property prices reach another level.
People give much importance to the interest rates because it determines the extra amount you would pay to the bank for taking the home loan along with the loan amount.
Though RBI has fixed a minimum percentage of interest, but you must have wandered about the varying interest rates offered by different lending institutes. The basic reason for the difference of house loan interest offered by various financers is that they have different margins of profit. It not only varies from one lender to another, it also changes from one borrower to another, depending on the loan eligibility.
Basically there are three types of house loan interest, they are: fixed rate, floating/adjustable rate of interest & trufixed rate of interest.
The fixed rate of interest is constant in nature and is bit higher compared to floating rate of interest, which fluctuates depending on the market condition & government policies. The loan term of a fixed rate is almost 20 years; on the other hand the floating rate stretches up to 30 years.
Trufixed rate of interest is combination of fixed & floating rate. The rate is fixed for a stipulated time, which can be from two to ten years, depending on your affordability & the lenders’ terms & conditions. After the stipulated period it converts into floating rate of interest.
The lowering interest rates increase the affordability of the borrower by reducing the EMI burden, which becomes easily affordable by many borrowers who cannot afford higher EMIs. There are various factors, which influences your house loan interest, some of them are:
· The credit score of the borrower plays an important role, in the rate you would get on your loan amount. It also determines the loan amount, which would be approved on your profile.
· Your spending habit can determine the interest rate you are liable for.
· The house loan interest is determined as per the loan slab, in which your loan amount would adjust.
· Your job profile & financial affordability would also determine the rates. More your affordability with a stable job lesser would be the rates for you.
· The type of interest rate you choose determines your rate of interest.
It’s a perfect time to get your home loan, before anything goes southward and the property prices rises again and the interest rates also escalates. Home is an essential part of life and the trending rates & maximum tenures offer the best combination for affordable Home Loan EMI to pay the debt comfortably. All the best, for the most important venture of your life.
People give much importance to the interest rates because it determines the extra amount you would pay to the bank for taking the home loan along with the loan amount.
Though RBI has fixed a minimum percentage of interest, but you must have wandered about the varying interest rates offered by different lending institutes. The basic reason for the difference of house loan interest offered by various financers is that they have different margins of profit. It not only varies from one lender to another, it also changes from one borrower to another, depending on the loan eligibility.
Basically there are three types of house loan interest, they are: fixed rate, floating/adjustable rate of interest & trufixed rate of interest.
The fixed rate of interest is constant in nature and is bit higher compared to floating rate of interest, which fluctuates depending on the market condition & government policies. The loan term of a fixed rate is almost 20 years; on the other hand the floating rate stretches up to 30 years.
Trufixed rate of interest is combination of fixed & floating rate. The rate is fixed for a stipulated time, which can be from two to ten years, depending on your affordability & the lenders’ terms & conditions. After the stipulated period it converts into floating rate of interest.
The lowering interest rates increase the affordability of the borrower by reducing the EMI burden, which becomes easily affordable by many borrowers who cannot afford higher EMIs. There are various factors, which influences your house loan interest, some of them are:
· The credit score of the borrower plays an important role, in the rate you would get on your loan amount. It also determines the loan amount, which would be approved on your profile.
· Your spending habit can determine the interest rate you are liable for.
· The house loan interest is determined as per the loan slab, in which your loan amount would adjust.
· Your job profile & financial affordability would also determine the rates. More your affordability with a stable job lesser would be the rates for you.
· The type of interest rate you choose determines your rate of interest.
It’s a perfect time to get your home loan, before anything goes southward and the property prices rises again and the interest rates also escalates. Home is an essential part of life and the trending rates & maximum tenures offer the best combination for affordable Home Loan EMI to pay the debt comfortably. All the best, for the most important venture of your life.