While taking a home loan, you should never be disinterested when the matter is about choosing the best home loan interest rates. The number of people opting for a home loan in our country is pretty high. The reason is pretty clear. Everyone wants to have their own roof above their heads, and not a rented one. Becasue you ask anyone who is living in a rented house and he or she will tell you about the difficulties they face in their daily lives. The constant fear of shifting from one place to another every year is the biggest of all. Owning your home is a luxury in a populous country like India which not many people have but everybody wants to.
It is considered as a luxury becasue of the soaring prices of owning a home. This is where Home Loan Interest Rates come into the picture. Due to the high prices, a large portion of the common people can not pay the whole price in one go, that’s why they opt for a home loan provided by several banks and institutions. Lenders charge interest rates on the loans on the people opt for which they have to repay with the principal amount through Equated Monthly Installments (EMIs). These interest rates tend to vary from one lender to another.
What is the Direct Impact of the Interest Rates on your Home Loan?
Home Loan interest rates possess the ability to change your EMI amount, that’s why everyone always puts so much emphasis on the interest rate. The crux here is the fact that your EMI is made up of the principal and interest amount. So if you want to have a lower EMI amount on your home loan, then it’s important that you choose an interest rate which is low and within your repayment capability.
To get the right guess about it, you could also use the Home Loan EMI calculator. Through this, you could know the exact EMI details based on your given details such as desired loan amount, rate of interest, and required tenure. As soon as you will fill all the details into it, you will get the EMI amount. If you are not satisfied with the given results, you could change the values according to your comfort as your EMI should always be within your repayment capability.
What are the Factors that Affect your Home Loan Interest Rates
When you apply for a home loan, there are certain factors which decide home loan interest rates for you. These factors are your age, monthly income, employment type, employment history, property type, property location, and most importantly, your CIBIL score.
Let me tell you why CIBIL score holds such importance? As you know that your credit score defines the your crediworthiness and how you manage your financial repayment. A good credit score automatically indicates that you are good at your debt management which lets the lender trust on you and hence, you could get a lower interest rate as compared to an individual who has poor credit score. Individuals with credit score of 700 or above are considred to be more crediworthy and perfect for lending acorss all the lenders. And this does not limit to only for home loans, whenever you opt for any kind of loans or credit cards, your CIBIL score will come into the act. The best way to imporve your credit score is to make timely repayments of all your exisitng credit facilities.