Finance

Seven Things to Know Before Getting Home Loan

Getting your dream Home Loan is not a small decision; a Home Loan loan is probably one of your most significant financial decisions. A Home Loan loan EMI calculator is a useful online tool that helps applicants calculate their monthly loan repayments. It considers the principal loan amount, the Home Loan loan interest rate, and the tenure of the loan. 

The Home Loan EMI calculator also provides an amortisation table that shows the breakup of the Home Loan loan repayment between principal and interest components.

The Home Loan loan EMI calculator is an online tool that can be used by anyone who is planning to apply for a Home Loan loan. Here are seven crucial things you should know about Home Loan loans and Home Loan loan EMIs before you get started:

Eligibility

The amount of Home Loan loan you will be eligible to get is determined by several criteria, including your 

  • Income
  • Age
  • Credit score
  • Tenure
  • Assets
  • Self-employed vs salaried

While income will impact the amount of money being borrowed, you may always include your spouse’s wages as a co-applicant to the loan. You can increase the chances of getting a house loan with it. The lender will generally provide an EMI loan with less than half your take-Home Loan salary.

The loan term can also help you qualify for a mortgage. By lengthening the period of your loan, the EMI is reduced. As a borrower, you may use online Home Loan eligibility calculators or ask your lender to provide one tailored to your needs. Before closing, approaching at least three to five lenders is advised to obtain the best mortgage amount possible.

Interest Rate

The lowest housing loan interest rate is almost 1%. Home Loan loan rates have been slashed by almost 1% in the last year, and Home Loan loan applicants can now enjoy Home Loan loans at interest rates as low as 8.35% per annum. However, even with a Home Loan loan EMI calculator, it is important to remember that the Home Loan interest rate is not fixed and may change during your loan tenure. Hence, a Home Loan loan with a floating interest rate is advisable.

Loan Amount

You can apply for a Home Loan loan for up to 80% of the cost of the property you wish to purchase. In some instances, you may even be able to get a Home Loan loan for the entire value of the property. However, this will depend on your income, age, credit score, and employment history.

Loan tenure

The Home Loan loan tenure is generally 5 to 30 years. So the term you choose will determine the monthly Home Loan loan EMI you will pay. A longer Home Loan loan tenure will result in lower EMIs, but it also means that you will pay more interest on your Home Loan loan over time.

On the other hand, a shorter Home Loan loan tenure will mean higher EMIs, but you will save on interest payments in the long run.

Prepayment charges

Most Home Loan loans come with a prepayment charge of 2-3% of the loan amount if you choose to prepay your Home Loan loan before the end of the loan tenure.

However, certain Home Loan loans do not have any prepayment charges. Therefore, if you are planning to sell your property or refinance your Home Loan loan, checking for these charges before doing so is important.

Processing Fee

The Home Loan processing fee is generally 0.5-1% of the total loan amount and is usually charged upfront. Sometimes, this fee may be added to the Home Loan loan principal, and you will have to pay interest. It’s a plus point to have the lowest housing loan interest rate in this case, as the processing fee doesn’t cost you much, either.

Downpayment

When applying for a Home Loan loan, you will generally need to make a down payment of 10-20% of the total loan amount. The down payment can be made using your savings, investments, or a Home Loan balance transfer from another lender. In some instances, you may even be able to get a Home Loan loan with no down payment. However, like other factors, this will depend on your income, age, credit score, and employment history.

Conclusion 

The Home Loan loan EMI calculator is simple to use. However, it is important to remember that the Home Loan loan interest rate is not fixed and may change during your loan tenure. Hence, a Home Loan loan with a floating interest rate is advisable. So, take a beat and use an EMI calculator to make your decision easier.

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