High real estate prices makes it difficult to so many people in buying the house that they want, but home loans makes it easy by funding 80% of the cost on the property. A home loan is a loan which is extended to a person in buying a property. The property actually is mortgaged with the bank or the non-banking financial institution until the loan’s repayment. It will also be the lender who is going to hold the title deed of the house until the overall housing loan amount will be repaid in full 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:
For the case of a second house, you actually will be eligible for claiming deduction on the whole amount of housing loan interest which is going to be paid under Section 24B on the 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. When you have some money with you, you can use this in order to make part payment for home loans and so you could lower the burden. However, there will be prepayment charges on floating rate home loans.
Balance on Transfer Facilities
On the case of home loans, you have the facility for transferring your home loan to another lender when they will give you a loan at low interest rates. There are balance transfer calculator that will help you in knowing how beneficial it’s going to be for you in transferring the loan amount.
Easy to Buy the Dream House
Making a purchase for a house through cash is not possible to a lot of people, but home loans could in fact be repaid through easy monthly installments that makes it easier in buying their own 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. Using the home loan EMI calculator would be able to help you in knowing how the EMI change when you change the home loan tenure.
Save you from Paying Rent
When renting in metro cities, you actually can find that this is high and may potentially strain your monthly budget. This actually why it’s better if you are going to pay the EMIs and for you to own a house.