Sophia9087The interest rate on home loans has a significant effect on the overall cost of a house. A difference in the rate can have a huge financial implication. However, an applicant must compare the interest rates of various lending companies and apply for the most suitable one.
Many reputed financial institutions provide home loan interest rates starting from 8.70% for salaried and professional individuals. Furthermore, this article informs about things you should remember before applying for a home loan.
Things to keep in mind before choosing interest rate on home loan
An individual must check the following points that will help him/her to opt for the best home loan rate of interest.
- Good credit score
Having a good CIBIL score assures a financial organisation that an individual will return the loan amount in time. It also helps a borrower to negotiate with the lending company and reduce interest rate on home loans.
- Online EMI calculator
An EMI calculator helps an individual to calculate monthly installments of the loan amount. Online housing loan EMI calculator eases the process of calculating the monthly amount and provides an accurate result to a borrower. However, it also helps to calculate the monthly payments with different home loans, interest rates and tenors.
- Type of interest rate
The type of interest rate will determine how much an individual has to pay as interest. In fixed interest rates, EMIs remain the same till the end of tenor. However, when an individual opts for a floating interest home loan, interest rate will change depending upon the repo rate.
- Pre-approved offershome loan
Certain financial institutions provide pre-approved offers on their products such as home loan and loan against property. These exceptional offers accelerate the overall loan application process. The individuals need to fill in their basic information which includes names and contact details to check out the pre-approved offers.
Therefore, the above points will help an individual avail preferable interest rates on home loan. Furthermore, a borrower must check the processing fees and charges while availing a loan as these add to the total loan amount.
