Home loans allow you to fulfill the dream of having your own home without putting a strain on your finances. Since the price of houses run up in lakhs and crores, affording a home entirely on your own funds is not possible. Home loans come to your rescue in this situation. It provides the necessary funds required to buy a home or a plot of land. You can avail a high amount through home loans up to 90% of property value and can repay the loan slowly through monthly EMIs up to 30 years. However, just like other loans, home loans also have attractive interest rates starting at 8.65%. The interest rates increase the repayment amount of the loan as you have to pay the principal as well as the applicable rate of interest on your home loan. The interest rates vary from lender to lender. However, there are a few ways which help in getting a home loan quickly and make them more affordable. Few ways are:
Check loan eligibility and EMIs before applying for the loan
When you are thinking to avail a home loan online, there are loan eligibility calculators as well as EMI calculators available online for you. These calculators help you calculate the amount of home loan you are eligible for and the EMI payable for the said amount of loan, which you need to pay monthly. You can use the calculators to calculate the loan amount and the EMI before applying, then decide the most affordable amount of loan whose EMIs would be easily repayable without any delay. If you apply for the loan amount with early recognizing your affordability, you would be able to avail an affordable home loan rate and can repay it very easily.
Always compare home loan rates offered by different lenders before you avail any home loan. Since the interest rates vary across lenders, comparing let you shortlist the banks which would give you the lowest and the most affordable interest rate. There are online loan aggregators which helps in making the process of comparing easy. You can visit the website of such aggregators to look for loans offered by different lenders along with their respective interest rates, processing fees, foreclosure charges etc. They help you to choose a lender who offers the lowest rate on your home loan.
Check the type of home loan rate offered
The most important thing you should know is the interest rates on home loans that come in two variants – fixed rates and floating rates. Fixed rates remain fixed throughout the tenure of the loan till repayment while floating rates changes with a change in MCLR of the bank. Fixed rates prove to be costlier when we compare it with floating interest rates. So, when you are availing a home loan, it is suggestable to go for floating interest rates as they would have low-interest pay-outs and proves to be affordable.
If you follow the above-mentioned ways, you would be able to enjoy quickly affordable home loan and become the owner of your own home without hurting your finances.
Additional Reading:- Mistakes You Should Avoid While Buying your Dream Home