As people’s salaries and living standards continue to improve, an increasing number of people, particularly younger people, are looking for Home Loan to assist them in purchasing the home of their dreams. During the course of their quest, some of them are frequently led astray by the misconceptions and misunderstandings that surround house loans. When looking for a mortgage to finance the purchase of a property, it is imperative that you do not give credence to any of the following myths:
The loan with the shortest term is the one to always choose
Many people who are considering obtaining a home loan believe that they should pick the shortest loan term feasible in order to complete the transaction as quickly as possible. However, because the loan term is shorter and the EMI is larger, consumers place additional strain on their financial situation by doing this. A higher FOIR could make it more difficult for you to secure a loan, and higher EMI payments could significantly reduce your monthly income (Fixed obligation to income ratio).
In order to afford their EMI payments, borrowers should choose longer repayment periods if they can. If they have additional money, they might consider prepaying their house loan in full or in part, regarding which they can contact Home Loan Customer Care whenever they require assistance with the decision, just like a savings/bank account customer utilises the Bank Balance Check Number whenever needed.
There is no way to negotiate interest rates on loans.
For some reason, home loan borrowers continue to have the misconception that the interest rates offered by mortgage lenders are set and unchangeable. This is not accurate at all. If you feel you are being treated unfairly by the lender and don’t like the interest rate they have offered you, you might be able to bargain with them for a lower rate. You could negotiate a reduced interest rate and better terms with your lender if you have good credit or a strong ability to repay the loan, for instance. If your present lender doesn’t cooperate with you to find a solution, you could potentially try to locate another one.
If you’re looking for a better bargain and the finest lender for your house loan, you might wish to use internet financial websites or portals or contact Home Loan Customer Care Number as well, which is similar to the enquiry of calling a Bank Balance Check Number when you need to see your bank balance updates. These platforms make it simple for you to compare and select among the various lenders who offer loans, such as home loan EMI Calculator tools that assist you in calculating your EMI. The finest lender for your requirements and financial situation can be found with this.
Always choose the lender with the lowest rates.
With house loan interest rates ranging from 8% to 12%, it is obvious that the interest rate is among the most crucial factors to consider when choosing a lender and calculating your EMI using a home loan EMI calculator. But when making a choice like this, that shouldn’t be your only consideration. Many customers make the error of selecting the lender offering the smallest loan amount. They don’t consider other elements like the services provided (such as additional loans), terms and conditions, the maximum period, various repayment options, or payment methods.
When selecting a lender, be sure to keep all of these factors in mind and go with the one who provides all of these services while also having a lower interest rate than the competition. In some circumstances, a lender offering a Home Loan with a marginally higher interest rate may also provide more services and better conditions of service than a lender offering a Home Loan with a lower interest rate in the same circumstance. Don’t forget to call Home Loan Customer Care in case you need any clarification before making the decision.
If you have an excellent credit score, you’ll be guaranteed a home loan
While credit scores don’t have a role to play for savings account holders who wish to utilise the facility of a Bank Balance Check Number to know their balance, housing loans definitely get affected by the credit score and report of the borrower.
But, many people believe that if they have a higher credit score, their application for a mortgage will be accepted without further consideration. Even though a high credit score increases your chances of obtaining credit, it doesn’t ensure it. Your application for a house loan will be accepted based on a variety of additional factors, including your age, income, debt-to-income ratio, employment history, and EMI, which you can calculate using the home loan EMI calculator. You should use an online loan eligibility calculator before submitting an application for a house loan, which can be found on the websites of significant financial markets. These assist the borrower in determining whether they qualify for a home loan without the need to submit an application and wait for the lending institution to respond.
Lenders impose high fees for loan prepayment and foreclosure.
Another prevalent misconception regarding mortgages is that paying off debts early may incur significant fees on the part of the lender. That is incorrect. Lenders cannot levy any fees for prepayment or foreclosure on floating-rate house loans, according to the Reserve Bank of India. On the other hand, such fees can apply to house loans with fixed rates. From lender to lender, the amount varies, but it typically ranges up to 2 percent.
Home loan EMIs rise automatically when interest rates increase.
A lot of times, Home Loan Customer Care gets queries wherein house loan borrowers assume that when the Reserve Bank of India raises interest rates, their EMIs will also rise automatically and immediately, making it more difficult for them to pay their expenses on time each month. Just a simple case of misunderstanding. Lenders typically offer to lengthen the loan when interest rates rise so that your monthly payment doesn’t increase. Borrowers should, however, pay the higher EMI if they can because if the loan term is extended, the total amount of interest paid increases. To obtain a fair indication of how the EMI is going to alter, utilise the house loan EMI calculator, nevertheless.
Additionally, until the reset period for your house loan expires, the increased interest rate won’t take effect. Existing borrowers may also use the home loan balance transfer option if they are confident that doing so would result in significant cost savings (because of a lower interest rate).