Home loans are not only about interest rates!

By | April 1, 2011

Just in case if you thought that you need to give your interest rates of your home loan importance than anything else, then you should reconsider it.

Apart from the interest rates issues, there are a lot of things that come along with your home loan:

Affordability:

Only if you think you are affordable for a home loan i.e. by analyzing your cash flows and repayment capacity along with your salary structure, opt for a home loan. But if you think that you can sell off that property for paying your loan amount may not always be a feasible thought. Because there have been times when the property prices have moved downwards, due to which, you can be under a tight spot.

Prepayment and foreclosure charges:

Opt for those loan schemes that give you the option of prepayment. This option is not provided by all banks, and if the borrower is seeking for it then, they have to pay a certain penalty charge. But d not worry this penalty charge is way better than paying your EMIs or interest. Pre payment option also comes in various offers where the borrower can pay quarterly or half yearly depending on the borrowers prepayment capacity.

Duration:

Bear in mind that longer the loan tenures higher will be the burden of the EMIs on your finances. Shorter the loan higher amount of EMIs will burden your finances. So try to prepay as much principle amount of the loan you can so that you can get over your debt swiftly.

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