It is good to pay the EMI for own home than to stay in a rented house. Investing in an immovable property can give the individual a long term benefit. The benefit is of owning a dream house or earning money by renting the property, when not used by the owner. So it’s a smart option to invest for long term benefit. But, most of the home loan customers face the dilemma of taking the home loan to buy the house they admire. Home loan covers the properties like; already constructed property, under-construction property, properties that require renovation.
As the property prices have reached a dizzy height and the interest rates are touching the sky-high levels, most of the aspirants find dream home beyond their reach. To buy properties people are now going to the banks and financial companies for financial help. The funding organization eases the stumbling block of financial crunch with home loan. It is the amount the lending organization provides to the borrower for purchasing the home. The interest rate at which the lenders are providing the loan amount is called the home loan interest rate. Basically the home loan interest rate is of two types; the fixed rate of interest and the floating/adjustable rate of interest. Another kind of interest rate is Trufixed rate of interest.
In fixed rate of interest, in the home loan interest rates, the rate at which the consumer pays the interest is fixed. Rate is not affected by the market condition it is always constant. For example, if the consumer has opted for a fixed rate of interest at which he will pay his emi, for the whole tenure it will be the same. Generally the financial organization earns profit in this process, but they also take the risk of providing a cheaper rate of interest, when the market rate is higher. Similarly if the rate decreases then also the customer will have to pay the same rate.
The adjustable/floating rate of interest is subject to change, it is variable in nature. Customers are suggested to go for floating rate of interest. The rates fluctuate with the market condition. if the rate of interest at which the customer received the home loan, decreases with the passage of time within the tenure then he has to pay the decreased rate, vice-versa.
In the trufixed rate of interest the borrower has to pay a fixed rate of interest for 2/3rd years of the tenure, after that a floating rate is punched.
Documents in form of address proof, identity proof, salary slips are some of the generic documents required by all the lending organizations. Investing on immovable properties in India can be quite lucrative for the aspirant.
The finance experts suggest that the customers should visit the common aggregator and understand the lowest rates available in the market, before jumping into the venture. Different organizations provide different rate of interest rate, some give as low as 9.7% and for women they give 9.65%.