Home Loan Rates And Loan Refinance For Indian Borrowers
India is a very price conscious market. Hence, Indian borrowers are undoubtedly very mindful about home loan interest rates, which can assist in making smart decisions as easily as they can lead people into penny wise pound foolish choices. But, here are three simple facts that you must always understand about home loan rates in India and home loan refinance. These facts will help you to make sound long term financial choices:
Fact no. 1: Choose the right reasons
Lower home loan rates as compared to your current rates is a great reason indeed. There is no doubt. However, it won’t really be a smart decision unless you have made sufficient home loan calculations to estimate profitability of the choice. Home loan interest rate is the most popular reason for home loan refinance for most borrowers. However, you must be sure that it will have long term value. Check out the right reasons for loan refinance, while you ensure its profitability:
• Lower housing loan interest rates
• Zero or no prepayment charges
• Better top up loan for renovations
• Home loan restructuring
Fact no 2: Do not rush into it
Home loan rate offers are available for a limited time period only. Or, so it will seem. But you must make this decision confidently. Since you will incur a lot of expenses, you should save considerably more than what you will spend on the home loan balance transfers in the form of stamp duty, processing charges, service charges, and other ancillary expenses. You will need to consider the entire home loan package that you will choose with refinance and not just the housing loan interest rates. Some elements of the home loan are customizable and some aren’t. So, read through and select very carefully.
• Repayment option
• Type of home loan rates
• Terms and conditions
Fact no 3: Choose the right time
You cannot use home loan refinance a lot of times; hence, you got to do it right. You must have the ideal home loan interest rates along with the right home loan structure. If you need a shorter tenure, you should be able to ask for it. But, what really matters with home loan refinance is the right time. The right timing for a home loan transfer is when you have these four elements:
• No home loan repayment defaults
• Minimal payment of home loan interest
• Great offer with the lowest housing loan interest rates
• NOC from your current housing finance company
So, take these three facts into account while opting for a home loan balance transfer and you will not go wrong.
