Erick Blackwelder of Exit Realty gives a quick explanation of home loan interest rates vs the Annualized Percentage Rate (APR)
Many of us have always dreamed of purchasing our own home instead of surviving on rented home. However, many dreams are not fulfilled because of increasing rate of properties these days. The remedy to deal with this was provided by various financial institutions by the way of home loans. These days financial institutions has made it very easy process to raise the home loans. In process of getting home loan an individual should be ready to pay 20% of total amount of the property and rest 80% is provided by financial institutions. However, there are few terms on which these 80% depends that are investigated to find the eligibility of borrower, such as, income and various other requirements.
Home loans are returned to the banks in monthly installments, which include both the principle amount as well as home loan interest rates. These monthly installment paid to the bank are popularly termed as EMI (Easy Monthly Installments). Amount of EMI is directly proportional to the amount of the loan and home loan interest rates. The amount of principle and home loan interest rate goes on decreasing as more and more EMI are paid to the bank.
If an individual is planning to purchase a home in future and unable to finalize the repayment amount for home loan every month or may be an individual has selected a property and having query that how much of EMI required to paid during the tenure of the loan. In addition, there are chances that the individual taking home loan may want to know how to reduce home loan interest rate.
Home loan calculator facilitates in the calculation of the amount EMI that would be paid per month. Thus, home loan EMI calculator helps in solving the query that how much principle plus home interest rates to be to be towards the end of every month. The amount of EMI to be paid depends on the home loan interest rate and tenure of the home loan. Thus, home loan EMI calculator enables an individual in getting correct figure of their EMI.
During the course of comparing home loans an individual is always attracted towards the lenders who are providing home loans at low rates. However there are various other factors that should be considered during the process of raising home loans.
While borrowing home loans an individual should never forget to check home eligibility with other banks. In addition, it should be checked that home loan interest charges are charged by bank on fixed or floating basis. Further, processing free should be considered carefully as these charges completely non-refundable. At last the pre-payment fees should be valued as many banks do not charge pre-payment fees if they are paid from the personal source of an individual. On the hand if an individual is making pre-payment by transferring other loans the charges varies from 1% to 2%.
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