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. Home loans are loans that are extended for a person to buy a property. The property in fact is mortgaged with the bank or the non-banking financial institution until the repayment of the said loan. 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. One could take up home loans not just for buying a property, but could also be taken for the property’s renovation or construction. Some benefits that home loans has to offer would be:
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. But there’s going to be prepayment charges for floating rate home loans.
Balance on Transfer Facilities
With the case of home loans, you actually have the facility to transfer the home loan towards another lender if in case they are going to give you loans for 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 in Buying 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 Tenure
Among The other loans available, a home loan have the longest repayment tenure which can reach up to 30 years where one can reduce the burden on the equated monthly installments by extending on its 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.
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. It is the reason why it’s better when you will pay the EMI and to own your very own house.