21 December 2010
Home Loans and Few Down Payment Facts for Borrowers
Down payment facts are easily understood by the layman as a small amount to be paid on booking of the flat. But due to rising property prices this also accumulates and comes to a big amount. With properties ranging from 1 crore to 10 crores it is understood that the down payment will be proportionate to this amount.
Usually 20% of the total value of the property has to be given as down payment and the rest has to be repaid in monthly instalments over the tenure of time period allotted for the home loan. Let us go through some of the simple facts regarding down payments:
1) The client has to arrange for this amount before going in for the purchase of the flat.
2) This amount varies from institution to institution and also from property to property.
3) This is a part of the total value of the property.
4) This does not include administrative costs, transfer charges, property taxes, stamp duty and registration charges.
5) Home loan refinancing and other mortgage on older property can be arranged for accumulating the down payment amount.
6) Only legalised buildings and properties are eligible for getting home loan approval.
7) There is no upper limit for payment as down payment. It depends on the amount one can arrange for. The larger the down payment the lesser the amount has to be taken as home loan and the less tenure for repayment.
8) One can also start saving and borrower from family and friends for the arrangement of this amount for the time being. This can be got without any hassles and interest free.
The best way to arrange and go in for the purchase of the home is to start saving! Collect your assets and start saving for this down payment amount if you are dreaming of buying a home and considering opting for a home loan.