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16 October 2011

Developers Offering Goodies for Selling Homes? The Hanging Booty in Home Loans?


Home loan rates today have gone up within few months from 8% to 12% and this is having a detrimental effect on all loan borrowers. People are beginning to think is there a way out? Many existing home loan borrowers are burdened with extra amounts added to their EMIs and also the loan tenure being extended till their retirement age.
Negotiate Save Money
Meanwhile the builders and developers are always on to something new. Right from fully furnished flats to free cars and even gold ornaments!  This time the trend beginning to tap the potential of our weakest point, benefits of children. The media creating hype about offerings of swimming pools, club houses and gymnasiums along with schools and hospitals and recreation centers, just for your children! All these amenities have been offered and going on for long and longer but the new way of presentation will work on the emotional aspect. Yes the developers now seem to tap the target group of working couples where there are nuclear families and the parents cannot spend enough time with their children. This they will cover up their emotional guilt by spending more money and buying a house with latest amenities so that their children are cared for and busy when the parents are away.
Now the majority home buyers are new couples or the families who are middle aged and looking for second homes as investments. It is a fact that many people can only buy a home by taking a home loan as the amount of each home is very high and loans for many also help in tax savings. Home loan lending agencies also offer goodies and some facilities for both fixed rate of interest or fluctuating rate of interest when lending money. Every financial housing institution has different concessions and benefits for home loan borrowers.

 The important tips for any borrower to look out for when choosing the best home loan is not what is mentioned everywhere in the media and advertising. Think money! Only only think of saving money! All the rest of the facilities and perks are always calculated by the home loan lenders according to their benefits. The home loan borrowers will present their loan lending plan in such a way that you will feel you are getting big bonuses, but the fact remains that the winner in the end is the lender as they get large profits in terms of high interest earned by lending.
So when you sit for negations and finalizing your home loan be prepared. You have to borrow a certain amount for which you have to pay interest. Find out the lowest interest rate offered by any housing finance company. Of course consider which loan lending company is willing to offer you loan first with your age and qualification and work history. Save money here.
Next when selecting fluctuating rate of interest on your home loan and getting lowest rate look at the home loan tenure as you may end up paying more in the long run. Get your loan on the lowest rate any way!
Reduce your down payment from 20% of the total amount of house. This would be a boon for any borrowers and in fact there will be a sudden spurt of increase in loan borrowers when the lenders reduce the down payment. Any housing finance company can go through the borrower’s financial position, age, qualifications, assets, credit card statements, past repayment history and loan repayment capacity along with working family members and they can offer loans even on a lower down payment. Try to negotiate here for reducing this amount in the beginning.
Try to extend your loan tenure to the maximum. You will buy time and later when you are in the position you can repay your loan earlier. This will save you precious money as interest that you would have to pay when you select a low repayment tenure plan which has high interest rate.
If your home loan lending institution is offering any perks and festival offers consider them in a critical manner. As most of the times it is just a media presentation and advertisement to divert your attention form the important facts. So do not select a home loan lender just for the offers go through the other aspects as well. But consider these perks as you have to borrow a loan any way!
Be an educated home loan borrower. Since a home loan is a major decision and involves lots of money and also for a very long time spend this much time for enquiring, weighing pros and cons and also information for the best home loan lending agencies. Find out where you can reduce money, Administrative costs also add up to a substantial amount and very often a home loan borrower does not consider this expense. Home loan closure is another aspect and find out the fees for loan pre closure and fix it at a small amount or no extra charges, this would be best to avoid any early closure charges. You can promise the bank that you will maintain a minimum term of repayment and later if you can afford will repay the home loan without any extra charges, except for the minimum administrative ones. Avoid the penalty for early closure. When looked at the first glance this amount does look smaller than your home loan but transfer charges, and other administrative costs are also an important part of your loan process and the fact that you can negotiate here also is rarely considered by anyone, negotiate any way!

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