The high real estate prices actually makes it difficult for a lot of people to buy a house that they want but home loan this easy through funding about 80% on the cost of the property. A home loan is a loan which is extended to a person in buying a property. The property will be mortgaged with the bank or the non-banking financial institution until the repayment of the loan. The lender also will be holding the title deed of the property until the housing loan amount will be repaid in full together with the due interest in time. Home loans could not only be taken for the property’s purchase, but also on the construction or renovation of a property. Some of the benefits of home loans are as follows:
In the case of a second house, one will be eligible in claiming deduction for the overall amount of housing loan interest that’s paid under Section 24B of Income Tax Act.
Prepayment Charges are None
Unlike other loans where the lenders are going to charge prepayment penalties on payment made for home loans, there’s going to be no prepayment penalty on floating rate home loans. Whenever you have some surplus money, you could use it to make part payment to the home loan and in lowering your burden. However, there will be prepayment charges on floating rate home loans.
Balancing Transfer Facility
For the case of home loans, you have the facility to transfer the home loan to another lender if they are going to give you loans at lower interest rates. You may even find balance transfer calculators that can actually help you for knowing how beneficial it’s going to be in transferring loan amounts.
Ease on Buying your Dream House
For a lot of people, making a purchase for a house with cash is not entirely possible, but home loans can be repaid on easy monthly installments, which makes it easier for one to purchase their dream house.
High Repayment on Tenure
Among all the kind of loans, home loans comes with the longest repayment tenure that actually goes up to 30 years, which is where one could reduce the burden of the equated monthly installment through extending on the tenure. The use of the home loan EMI calculator actually helps you to know how the EMI change if you are going to change the home loan tenure.
Saves you in Paying Rent
Renting in big cities can be expensive and could also put a strain on your monthly budget. This is the reason why it is a lot better when you pay the EMI and to also own a house.