Are you planning to build your house?
Well, a house-building loan can take you closer to your dreams. However, there are some common myths that you need to know.
Let us break those home loan myths for you. It will help you make a more informed decision while applying for one.
1. Home Loans With The Lowest Interest Rate Are The Most Profitable
Well, that is the biggest myth regarding home loans. Apart from the interest rate, your lender might take several additional charges from you. For instance, you have to pay the processing fees and the stamp duty.
So, a lender charging a lower rate of interest might take a high processing fee from you. Therefore, you need to check these additional charges before applying for a home loan.
2. Fixed Interest Rates Are Better Than Floating Rates
You might think that fixed interest rates will give you certainty. However, you will not be able to benefit if the lender suddenly lowers the rate.
So, whether you go for a fixed or floating rate depends on your convenience.
3. The RBI Decides The Housing Loan Interest Rate For All Lenders
Well, the Reserve Bank sets the broader rates in the market. It affects the interest rate of your home loan. However, individual lenders can set their rates depending on their cost of lending.
Make sure you compare the housing loan interest rate offered by various lenders before applying.
Final Word
Taking the right home loan can ease your financial burden in the long run. Now that you know these myths, you will be able to get a better deal.
Also Read: Advantages of Taking a Home Loan From PNB Housing Finance
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