Different types of home loans are provided by banks and finance companies on the basis of different needs and profiles of customers. Due to the rising cost of home and land, consumers have to resort to home loan to buy home or land. Therefore, you should also choose a right loan based on your need and financial goals. Know about the different kinds of home loans available in the market.
Pre-Approved Home Loan: There are many types of loans that are already sanctioned by the bank. Your income in such loans, your credit score is already seen by the banks, so that you can save time. The special thing about such a home loan is that it is given only in a set time and you have to raise this loan within that time frame. The most important feature of this type of loan is that these loans are available at lower interest compared to the rest of the loan.
Home Loan with fixed Interest Rate: There is no effect of market volatility on such home loans. Monthly EMI of fixed loan Repaying is very helpful in keeping the budget well in advance and planning ahead. Financial security is also available from such loans. But there is a problem with the interest rate of home loan, available at fixed interest rates, is generally much higher than home loans with an uncertain or temporary interest rate.
Home Loan with Floating rate of Interest: Home loans with floating interest rates are subject to changing interest rates due to market fluctuations. Temporary interest rates include two things, basic interest rates and temporary components; The change in the floating rate changes when the original rate changes. Changing interest rates on your financial planning have a huge effect as the uncertainty of interest rates can hinder your meeting of other financial responsibilities.
Joint Home Loan: It is a loan that can be taken together by more than one person. It can be taken in conjunction with a family member in which your spouse, parents, siblings, etc. may be included. Loan payment comes through both accounts, and both are responsible for delayed repayment of loan or due to default. Tax benefits of joint home loan, both the members of the loan get.
Home Improvement Loan: If you need money to repair or renovate the house then you can take a home improvement loan. For a year, anyone who lends a loan can take such a loan, but the loan amount is used only for home repair or renovation.