A lot of people grow up living in a rented house and eventually buying a place of their own becomes the main drive behind building their careers. Meanwhile, people realize that rather than paying rent, they can use the same amount to pay EMIs and eventually have a roof of their own down the line. It’s a beautiful feeling to secure a home for yourself, and invite your loved ones to see the most incrementing gift you could have given them. But everyone is not a master of every subject, and hence it’s best to let the experts take over. Kamlesh Gandhi Projects has been one of the industry leaders and hence leaves no stone unturned in delivering real information, especially to the potential buyers so that they make an informed decision which they can cherish for their lives.
With the increasing cost of housing properties, it has become mandatory for most people to take home loans. Today, this blog will talk about some elements that will help you debug home loans. We sincerely hope this blog helps you get a step closer to securing a home. It is a special feeling, and we really want all to experience it.
How to reduce your home loan EMI amount?
Home is not just one dream a person has. There are many responsibilities a family has and a major chunk of income going into this would not be an ideal situation for most. Hence, before you take a home loan with a bank, research where you can get a loan at the lowest interest rate. For example, if you take a home loan of Rs 50 lakh at a 7.5% interest rate for 20 years, your EMI will be Rs 40,280. Everything being the same, if the interest rate is 6.5%, you pay an EMI of Rs 37,279. Hence the interest rate should be the foremost deciding factor.
In case you have some savings especially kept aside to secure a home, make a larger down payment in one go. This will reduce your EMI further and proportionately your loan amount.
While taking a new home loan, opt for a longer tenure. If EMI looks like something you are not ok with, the ideal option will be to increase the tenure. In the above example of a 7.5% interest rate, if you change the duration from 20 years to 25 years, your EMI will reduce from Rs 40,280 to Rs 36,950. Though do note that a longer tenure would imply higher interest paid over time.
These days a new home loan strategy has been in action wherein people initially want to invest more in their homes and then later, start saving towards other responsibilities like education of children, weddings, retirement etc. Step-down EMI plans are for those who are willing to give higher EMIs now but eventually want lower EMIs. In this option, you choose to pay a higher EMI in the beginning and decrease the EMI amount gradually.
Everybody does not have a stable job which promises a certain amount of income. Businesses and freelance career options can never promise you an exact amount of earnings. In such scenarios, it’s wisest to reduce your EMIs, then you can go for home saver loans. These are similar to the overdraft facility. With this option, your minimum obligation is to pay only the monthly interest. When income is relatively lower, only the minimum for those months can be paid.
Whenever earnings get to a higher level, you can pay a higher amount to reduce the outstanding principal amount.
If you also wish to secure a home of your own but do not have funds available upfront, then taking a home loan will be an excellent option rather than paying rent and eventually getting nothing out of it. Remember that banks look through many parameters while sanctioning home loans such as credit score, loan amount, loan value ratio, income level etc. These factors can vary for different individuals.
Each industry has its jargon and lingos, and real estate is no different. You must know what each element of a home loan and securing a home represents before investing in a residential or commercial property. If you have been contemplating taking a loan and investing in your dream home, make sure that you end up regretting nothing. We believe you must be looking for a trusted name that is known to provide value for money. Don’t know what would be the best to buy in Vadodara? Well, you can start by Contacting Us.
Kamlesh Gandhi Projects conform to property norms and delivers a product true to its commitment. If you are looking for spacious 3BHK flats or 4BHK bungalows in Waghodia, check out our current projects loaded with luxurious amenities, which truly set us apart from the rest.