Smart Hacks To Make Your Home Loan Interest Rate Freeadmin | January 13, 2021 | 0 | Loan
The Home Loan is the all in one solution for your housing loan needs. Whether you’re trying to buy, build, or renovate a home. Home loans are one of the categories of loans that are versatile in nature. It may be made available without leverage. As much as it is odd, a home loan is suitable for people who are vigilant and making prompt repayments. Home loan debt strain is the last option somebody will like that will pull you down for years to come. Under certain situations, having the loan done will be the best thing to do.
Getting a house is a fantasy for many Indians. It’s because getting your own house in our culture is the true symbol of success. People that live on rent are hated upon and pushed by relatives and acquaintances to get their own place. With their best ideas and plans, several banks and financial companies will come to you. But do you know the facts that influence the home loan interest rate thereby ? One of the largest and most expensive loans is a home loan. The sum you borrow depends on that. The value of the loan will be twice the amount you lent. It depends on the tenure and interest rate that you are going to pick. An analysis of different banks on factors like interest, fees, makes a judgment on the bank for the loan.
Here are a couple of ways for you to get a home loan at a low-interest rate:
Estimate the EMI amount
If you will take a home loan of Rs. 25,00,000 from HDFC bank at the interest rate of 6.90% for 20 years. You might have to pay Rs. 19,233 per month as monthly EMI. In total, you will repay Rs. 46,15,846. The Principal Amount was ₹25,00,000, but you are paying an Interest Amount of ₹21,15,846. Now, let’s reduce the tenure period. Let’s make it only for 15 years. In this situation, you will only have an Interest Amount of ₹6,68,436.
You can see how reducing the number of years affects the interest amount. If you are able to pay Rs. 37,000 per month as an EMI, then you must go for a 15 years plan. It depends on your willingness to repay. If you have started earning, then wait for a few years. If your salary is good, you can go. But, if you earn an average salary, wait for a few years. Wait for the hike in your income; make some savings. You can take a home loan later; also, it will reduce your burden.
By investing in mutual funds
If you begin or start a monthly SIP of Rs. 6,000 (0.10 percent of the loan amount). The investment with an average annual return of 10 percent would rise to a total of 45.56lakhs in 20 years. Your investment amount is ₹14.4 Lac. The future value of your SIP investment is ₹45.56 Lac.
If you are thinking of taking out a loan to buy your dream house, you may have to incur interest rates. And with a little SIP, you can quickly regain the whole volume. Yet, this can only become a possibility if you keep saving the sum and display patience.
Home loans are ideal for those who are diligent and render timely repayments. The size of the loan would be double the amount you’ve borrowed. It depends on the tenure and the interest rate you want. Estimate the volume of the EMI to estimate the interest rate. Wait for your salary to rise, make some investments. You might even take a home loan later, it’s only going to reduce the pressure. If you launch a monthly SIP of Rs. 6,000 (0.10 per cent of the loan amount). An investment with an average annual return of 10 per cent will grow to a total of 45.56 lakhs in 20 years.