Alert! Know These Tips Before You Sign The Home Loan Deal
Fixed does not always mean ‘fixed’:
Smart borrowers find it safe by opting for fixed rates of interest return. They feel secured and sound as they are well aware about the amount and money that have to revert to the bank in a definite pan of time. But alert, dear borrowers! Check the loan documents thoroughly. Some minute alphabets or codes definitely mean that the bank has the authority to fluctuate the rate of interest after a certain period of time.
Banks won't tell you how much Pre-EMI you will have to pay:
When it comes to settling upon a home loan for an under constructed property the rate of interest and time period offered might be really likable for the customer. But the trick of the game lies in the concept called ‘Pre-EMI’. Pre-EMI means the borrower will pay interest on the disbursed amount in monthly installments. As this seems to be a smaller amount, all borrowers generally sign the deal. But option leads to a major loss especially if the builder delivers the property late. Also, the principal amount to return remains constant till the property is constructed. So the Pre-Emi is basically an excess payment just because the property you chose was under constructed.
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