Different Kinds Of Home Loans Having Different Kinds
Of Interest Rates
Owning a house or a property is a dream of every individual. This dream is seen by the rich as well as by the poor, but many a times achieving what we want becomes like impossible. At times in our life, we need a huge investment in order to buy a home or a property for ourselves. This investment can not be made by everyone.
For those who can not, Home loans are there to get you what you want. Home loans are like a bridge between you and your dreams, bridging all the gaps.
Interest rates
The interest rates of home loans are lower compared to other kinds of loans offered. The reason is that the home loans are given against some security. However, interest rates depend on various factors, and these factors by far decide and define the interest rates. Some of them are:
1.Repaying capacity of the home loan seeker.
2.Income of the home loan seeker.
3.Tenure for which the loan is taken or granted to the home loan seeker.
4.Credit history of the home loan seeker.
Amongst all of these, the most important part is the credit history of the home loan seeker. If the home loan seeker is having a Bad credit history, it cost him by interest rates being high for him.
Few of the home loans on the basis of interest rates
1. Standard variable home loans
These kinds of home loans have a variable rate of interest. Thus the advantages are that the borrower needs to repay back less, if the rate of interest drops. More so, additional payments can be taken back. The repayment can be made without penalty under this scheme. These kinds of home loans are very flexible as well as posses a lot of features for the benefits.
2. Basic variable home loans
These kinds of home loans are a lot similar like standard variable home loans. However, the only difference is that the repayment under this type of loan is less. This is because these kinds of home loans have lower interest rates than standard variable home loans. Usually this difference is of about 0.50%.
3. Discount variable or introductory home loans:
These kinds of home loans are very advantageous. They are available at the lowest possible rates and repayments, here, are made at the introductory rates. The principal can be repaid very fast under these kinds of home loans as the interest rates are very low. However, the disadvantage of this type of home loan is that once the introductory period is over, you will have to pay the interest at the standard rates.
4. Fixed rate home loans
These kinds of home loans have a fixed kind of rate of interest. Hence, the advantage is that the borrower does not require paying any additional amount as repayment, if the rate of interest increases, but at the same time the chances of less repayment are also cancelled.
The above said are types of home loans based on different types of rate of interest. You need to choose the one that truly defines your needs and requirement the most.
For those who can not, Home loans are there to get you what you want. Home loans are like a bridge between you and your dreams, bridging all the gaps.
Interest rates
The interest rates of home loans are lower compared to other kinds of loans offered. The reason is that the home loans are given against some security. However, interest rates depend on various factors, and these factors by far decide and define the interest rates. Some of them are:
1.Repaying capacity of the home loan seeker.
2.Income of the home loan seeker.
3.Tenure for which the loan is taken or granted to the home loan seeker.
4.Credit history of the home loan seeker.
Amongst all of these, the most important part is the credit history of the home loan seeker. If the home loan seeker is having a Bad credit history, it cost him by interest rates being high for him.
Few of the home loans on the basis of interest rates
1. Standard variable home loans
These kinds of home loans have a variable rate of interest. Thus the advantages are that the borrower needs to repay back less, if the rate of interest drops. More so, additional payments can be taken back. The repayment can be made without penalty under this scheme. These kinds of home loans are very flexible as well as posses a lot of features for the benefits.
2. Basic variable home loans
These kinds of home loans are a lot similar like standard variable home loans. However, the only difference is that the repayment under this type of loan is less. This is because these kinds of home loans have lower interest rates than standard variable home loans. Usually this difference is of about 0.50%.
3. Discount variable or introductory home loans:
These kinds of home loans are very advantageous. They are available at the lowest possible rates and repayments, here, are made at the introductory rates. The principal can be repaid very fast under these kinds of home loans as the interest rates are very low. However, the disadvantage of this type of home loan is that once the introductory period is over, you will have to pay the interest at the standard rates.
4. Fixed rate home loans
These kinds of home loans have a fixed kind of rate of interest. Hence, the advantage is that the borrower does not require paying any additional amount as repayment, if the rate of interest increases, but at the same time the chances of less repayment are also cancelled.
The above said are types of home loans based on different types of rate of interest. You need to choose the one that truly defines your needs and requirement the most.