Types of Home Loans
Buying a home in India is not a dream anymore. Banks and housing finance companies have come up with umpteen home loans plans to cater to the specific needs of individuals. A variety of home loan schemes are on offer to support a wide range of housing activities. Given below are some of the basic home loan types to help you choose a plan which fit in exactly with your requirement.
Basic Home Loans
If you are first home buyer, basic home loans can just be the answer. These home loans are offered at a lower interest rate with less flexibility options. In this case, the interest rate happens to be half to one per cent lower than the standard variable rate. Besides lower interest rates, the basic home loan comes along with lower ongoing fees and is devoid of any additional repayments.
Standard Variable Rate Home Loans
One of the most sought after mortgages available, a standard variable rate home loan includes as its main features repayment flexibility, additional repayment options, redraw facility and split loan features among others. However, this type of loan is available at a higher interest rate as compared to a basic home loan.
Fixed Rate Home Loans
If you wish to stick a pre-decided budget and don’t want to be worried by rising interest rates, you should opt for a fixed rate home loan. Though this type of home loan comes with less features, you get the benefit of having the repayments same for a set period of time.
Split Rate Home Loans
The home loan combines the features of a fixed rate home loan and a variable rate home loan. The plan helps the borrower split the loan amount in many ways. By choosing this loan type, you can customize the package according to your needs.
Interest only Home Loans
Not only for investors, but an interest only home loan also matches the needs of general home buyers. If you opt for this plan, the interest component becomes the repayment (lower). The principal, however, can be repaid when the loan duration concludes.
Line of Credit Home Loans
Also referred to as revolving line of creadit, the line of credit home loans requires as security a first mortgage on a residential property. Whoever avails this type of loan is required to exercise budgeting discipline so as to keep your finances in limit.
Lo-document Loans and No-deposit Home Loans are the other types of home loan available in India.
Wooden Blinds Loft conversions Shared ownership Non profit Debt services Tax Debt damp proof membrane concrete floor Errors Omissions Insurance
Home | About Us | Property News | Home Loans | Home Values | Home For Sale & Buy | Indian Real Estate | Mortgages | Mortgage Marketplace | Real Estate Consultancy | Real Estate Consultancy Services | Residential Property | Contact Us | Site Map
