| Home is the biggest dream of everyone's life. In | | | | Apart from availing loan for buying a new house, |
| today's market with ever-increasing prices of land | | | | these days you can also avail home loan for |
| and property, buying a home requires meticulous | | | | renovation, extension etc. Right choice of financial |
| planning. | | | | institution can save a lot of worry and money. |
| In most of the cases buying your dream house | | | | Factors on which loan depends are- |
| will require some kind of financial help. Banks come | | | | 1. Your financial position- basically it refers to your |
| as a rescue at this point. Keeping in mind the | | | | budget and affordability. |
| increasing trend of buying houses, Banks have | | | | 2. Equity you share in finished property |
| made home loans really consumer friendly. | | | | 3. Time frame |
| Market is flooded with lot of lucrative deals but of | | | | 4. Whether you are selling a property to buy this |
| course with hidden costs. Always consult a | | | | one or are it a fresh first buy. |
| professional before applying for home loans so as | | | | Analyze the complete situation in totality; weighing |
| to help decipher these costs and help you get the | | | | the options provided and risks involved. Only then |
| best deal in terms of PMI, flexi interest rates and | | | | will you get the optimum benefit of the loan. |
| bank services. | | | | Most important factor in deciding home loan is |
| Home loans are something that involves lot of | | | | interest rate. You can choose among various |
| money and thus its PMI is extended over long | | | | options of interest rates, namely- |
| period of time. One has to take care while | | | | 1. Fixed-rate loan |
| choosing a bank with repute to finance home | | | | 2. Adjustable-rate loan |
| projects. It has been widely experienced that a | | | | 3. Loans for first-time homebuyers |
| customer is troubled few years later and then his | | | | You can choose the first option of fixed interest |
| options are limited, but gets exploited. Always go | | | | rate loan if you are a salaried income earner. This |
| through the deal carefully and see for any sort of | | | | stable interest rate will help you plan your monthly |
| loopholes. | | | | budget conveniently and save you from |
| The golden rule is to be prepared to enjoy the | | | | unnecessary concern over fluctuating interest |
| loan and not crib over buying of home. | | | | rates. |
| The first thing towards preparation of Home loan | | | | Adjustable interest rate is beneficial for those |
| is to calculate your true borrowing capacity. | | | | who are taking loan from investment point of |
| Let us have a look at the various types of Home | | | | view. Here initial interest rate is low. Interest rate |
| Loans presently floating in the market- | | | | will change based on market conditions. |
| 1. Capital repayment home loans | | | | The idea behind loan for first time buyers is to |
| 2. Endowment home loans, | | | | give them hassles free loaning system. |
| 3. Pension linked home loans | | | | There is no dearth of options to avail loan but one |
| 4. Interest-only home loans | | | | needs a lot of research to avoid any kind of |
| 5. Reverse home loan | | | | hassles at a later stage. |