Home Loans: Its Advantages And Disadvantages
Many of us desire for house, which we cannot afford or which is much beyond our reach. There are several reasons we give for not getting the house. Many a times, there are several other works, which binds us or involves us and thereby leaves us with no money at all. It is a general tendency of human that has a habit of compromising with their desires. But now the scenario is changed.
Now you are never far away from your dream house and neither do you need to compromise with your dreams. The house you dream of can be yours the moment you want it to be yours. A home loan helps you in achieving your dream house.
However, before you go for a home loan, make sure that you have considered both its advantages and disadvantages.
Advantages
Home loans are provided for a wide range of amount
The range of the amount of the Home loans is very wide. The value is given on the basis of the income of the applicant or on the basis of the value of the property for which the loan is applied.
Home loans are provided on all kinds of properties
The loan is provided for all the kind of properties. The property may be under-constructed, or the property may be ready, or may be self-construction or may be a house-improvement.
Home loans are provided for long term
The tenure for which the home loans are provided is also long enough. The tenure is fixed according to the applicant's will. The tenure can extend up to 25 years.
Various tax benefits
The home loan along with its various advantages provides the biggest advantage to all those who have to pay a huge amount as tax. The interest they pay can be taken into the itemized Deductions and hence the total tax to be paid can be deducted.
These benefits amount to huge ones as the interest one pays is a huge sum. These are also a good measure for the first time buyers.
Disadvantages
Though Home loans are provided for a wide range of amount, the numbers and formalities of the security papers as well as the interest rates increase with the applied amount. Also the amount is sanctioned after a lot of investigations, which sometimes harasses the applicants.
Besides, the amount sanctioned is questioned many times in some of the bank. If the desired or the applied value increases the value of the property the loan is not sanctioned.
The repay system of these Home loans by many banks is also not convenient. Though the payment option depends on the will of the applicant, but still the bank authorities are always after the applicants with some kind of hidden force to choose the system, which they feel to be good.
The repay installment is either monthly or Yearly or Quarterly or half-yearly. But if anyhow the applicant wants to change the form of repayment, it takes him or her huge time as well as labor. Though the process is very easy, but is not done that easily in many of the banks.
Generally the interest rates are high: Along with all the benefits that the Home loan provides, it has a major disadvantage. The interest rates extracted in the Home loans are very high. Hence, the repayment amount also increases.
Though home loans may have some disadvantages, it also has a lot of advantages, as mentioned above. Now, it is up to you to decide, whether you go with the advantages and apply for a home loan or you go with disadvantages and see your dream house only in your dreams.
Now you are never far away from your dream house and neither do you need to compromise with your dreams. The house you dream of can be yours the moment you want it to be yours. A home loan helps you in achieving your dream house.
However, before you go for a home loan, make sure that you have considered both its advantages and disadvantages.
Advantages
Home loans are provided for a wide range of amount
The range of the amount of the Home loans is very wide. The value is given on the basis of the income of the applicant or on the basis of the value of the property for which the loan is applied.
Home loans are provided on all kinds of properties
The loan is provided for all the kind of properties. The property may be under-constructed, or the property may be ready, or may be self-construction or may be a house-improvement.
Home loans are provided for long term
The tenure for which the home loans are provided is also long enough. The tenure is fixed according to the applicant's will. The tenure can extend up to 25 years.
Various tax benefits
The home loan along with its various advantages provides the biggest advantage to all those who have to pay a huge amount as tax. The interest they pay can be taken into the itemized Deductions and hence the total tax to be paid can be deducted.
These benefits amount to huge ones as the interest one pays is a huge sum. These are also a good measure for the first time buyers.
Disadvantages
Though Home loans are provided for a wide range of amount, the numbers and formalities of the security papers as well as the interest rates increase with the applied amount. Also the amount is sanctioned after a lot of investigations, which sometimes harasses the applicants.
Besides, the amount sanctioned is questioned many times in some of the bank. If the desired or the applied value increases the value of the property the loan is not sanctioned.
The repay system of these Home loans by many banks is also not convenient. Though the payment option depends on the will of the applicant, but still the bank authorities are always after the applicants with some kind of hidden force to choose the system, which they feel to be good.
The repay installment is either monthly or Yearly or Quarterly or half-yearly. But if anyhow the applicant wants to change the form of repayment, it takes him or her huge time as well as labor. Though the process is very easy, but is not done that easily in many of the banks.
Generally the interest rates are high: Along with all the benefits that the Home loan provides, it has a major disadvantage. The interest rates extracted in the Home loans are very high. Hence, the repayment amount also increases.
Though home loans may have some disadvantages, it also has a lot of advantages, as mentioned above. Now, it is up to you to decide, whether you go with the advantages and apply for a home loan or you go with disadvantages and see your dream house only in your dreams.