shortage of funds is a common problem for people who wish to build
their own homes. In such cases, home loans seem to be the best
option. While you take up a loan, you must also be aware of the
regular EMIs that you will have to pay.
Here are a few important
factors that can affect your home
loans EMIs. Have
a look at these points:
in interest rates:
Fluctuation in interest rates can affect your EMIs both positively
and negatively in accordance with the market. The interest may differ
according to the change in the base rate or the MCLR decided by the
CIBIL score is what makes the lender offer you lower interest rates.
Most lenders typically prefer a score of not be less than 750. The
credit score usually varies from 0.25% to 1.5%. The difference isn’t
much but changes the total loan cost with considerable increases.
Housing loans also provide their customers with the option of
pre-payment. This leads to the reduction in the outstanding amount,
which thereafter results in the reduction of EMI or repayment tenor.
Although if you invest in any other financial schemes, and the
interest earned here is more than that you save by pre-payment, then
pre-payment on your home loan is non-profitable. Keep in mind that
you must calculate your EMIs before you apply for repayments in
advance. The use of an EMI calculator is advisable to avoid errors.
it will help you to know how
to calculate home loan EMIs.