5 Questions That You May Be Worried About Home Loan
Nov 15, 2018 Home Loan
You have your dream home now with the help of a home loan. Initially, it seems that all your worries are done and dusted. However, it is not true as now you have the huge amount of home loan to repay. You always will always be occupied in finding ways to bring down the overall loan amount. You have to be alert about changes in norms. Besides, you may have several questions in your mind always playing implications worries.
Here are the top 5 questions that you may always be worried about your home loan:
Will switching to the new lending benchmark be beneficial?
The Marginal Cost of Funds-based Lending Rate (MCLR) system has become applicable since 2015. With this, there is a hope of lowering the total loan cost. So, the existing borrowers often consider switching to the new lending benchmark. Switching to a new system can be beneficial if it’s done thoughtfully; your personal aspect matters.
Is switching a partially disbursed loan to a different lender an option?
In the case of ongoing projects, lenders issue the total loan amount phase wise, as the project progresses. In fact, the lender has partially disbursed the loan amount, and you have paid a pre-EMI for it: the EMI payments will start at later. At this stage also you can change your lender, but of course, the existing lender will negotiate and may be reluctant to oblige easily.
What about any rate cuts by RBI?
The first question is what kind of loan you have availed and what’s the amount. Based on that this rate cut can be beneficial. If your loan is based on a fixed rate of interest, then these cuts won’t help as it can only be benefits if the interest is a floating one, which is just a possibility.
What is safer? Is it a fixed rate of interest?
Home loans are subject to rest the agreement after a certain period no matter whatever the clause may be. It all depends on the market conditions. Even if you have a clause of a fixed rate of interest, after a certain period it will restructure.
If I opt for a different lender, what will be my old lender’s reaction?
This question may arise if you think what if you approach your old lender for another loan. Will they refuse just because you switched your previous loan. That is not the case. It is essential that you always put your points across clearly at the time of switching instead being aggressive. After all, they were the ones who lend you money at the time of your need with less effort.
Here are the top 5 questions that you may always be worried about your home loan:
Will switching to the new lending benchmark be beneficial?
The Marginal Cost of Funds-based Lending Rate (MCLR) system has become applicable since 2015. With this, there is a hope of lowering the total loan cost. So, the existing borrowers often consider switching to the new lending benchmark. Switching to a new system can be beneficial if it’s done thoughtfully; your personal aspect matters.
Is switching a partially disbursed loan to a different lender an option?
In the case of ongoing projects, lenders issue the total loan amount phase wise, as the project progresses. In fact, the lender has partially disbursed the loan amount, and you have paid a pre-EMI for it: the EMI payments will start at later. At this stage also you can change your lender, but of course, the existing lender will negotiate and may be reluctant to oblige easily.
What about any rate cuts by RBI?
The first question is what kind of loan you have availed and what’s the amount. Based on that this rate cut can be beneficial. If your loan is based on a fixed rate of interest, then these cuts won’t help as it can only be benefits if the interest is a floating one, which is just a possibility.
What is safer? Is it a fixed rate of interest?
Home loans are subject to rest the agreement after a certain period no matter whatever the clause may be. It all depends on the market conditions. Even if you have a clause of a fixed rate of interest, after a certain period it will restructure.
If I opt for a different lender, what will be my old lender’s reaction?
This question may arise if you think what if you approach your old lender for another loan. Will they refuse just because you switched your previous loan. That is not the case. It is essential that you always put your points across clearly at the time of switching instead being aggressive. After all, they were the ones who lend you money at the time of your need with less effort.
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