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In case you are living having a perception that home loans come only in two flavors-fixed or floating, its time for you to wake as much as the reality. Keeping pace with global developments and inside a race to remain ahead in the fiercely competitive home loan market, banks and Housing Finance Companies (HFC,s) have come up with innovative schemes, which give a great deal of choices to a new home loan borrower. So, when you are worried about getting a home loan, read on; the banks may have some thing unique for you. Get more information about Cal Mortgage Rates




Fixed price or floating? Why not both The classic dilemma to go for a fixed loan or even a floating loan has perplexed the typical home loan borrower considering that ages. Volumes have already been written over the advantage one has over the other and this has only added towards the confusion. Taking benefit on the scenario, banks have started a home loan scheme, which offers the flexibility to decide on a home loan with each the floating and fixed rate of interest choices. A borrower can opt for a aspect of his home loan to be charged at a fixed rate of interest along with the rest at floating prices and vice versa.



Tempted by the existing fixed rates of interest? Choose Clever fix The unprecedented rise in floating rate home loans in recent years has prompted numerous borrowers to rethink their tactic in favour of the fixed rate home loans. If you are also one of those, who wants to reap the benefits of the relatively low fixed rates, but agrees together with the universal opinion that floating prices are finest over a lengthy time frame, you'll be able to opt for a specific kind of home loan, which charges the fixed interest rates to get a specified period (say 3 years) and floating rate thereafter. Aptly called intelligent fix by some banks, this home loan scheme lets you have the most effective of both.



Need to have a larger home? Go for a quick term bridging loan If you are dissatisfied together with your existing home for any cause what so ever, and desperately want a larger or much better house, but don't desire to sell your current house prior to you move in to the new one, a short term bridging loan is usually the right remedy. This loan fills the vital gap and offers an interim arrangement of finances among the sale of your old house and obtain with the new house. These loans could be repaid in effortless installments or by a lump sum payments soon after you sell the old house.



Can't afford major EMI's now but can do it in future? Opt for step-up repayment Off late the banks and hfc's have awaken for the fact that earnings levels of men and women rise as their profession progresses and this improves their repayment capacity over a period of time. Therefore, they have decided to give, what's called a home loan with step-up repayment facility. This particular home loan scheme gives the facility to repair the EMIs at a reduced level during initial stages of your home loan and enhance with tenure. Some banks even waive the principal repayment component of EMI for the initial period. So, for anyone who is a young qualified or have spent couple of years in a job and can convince your lender having a visible profession development, a home loan with step-up repayment facility could be the panacea.



Can afford big EMI's now but not later? Select step-down repayment Consider a scenario, exactly where a couple has taken a joint home loan and one of them is set to retire in few years. This can build a tricky predicament, in regards to the home loan repayment, because the repayment capacity of one with the borrowers will decline right after his retirement. A home loan using a step- down repayment strategy can go a extended way keeping troubles at bay in such a scenario. The couple can pick to repay larger EMI's during the initial stages of home loan, when both of them are earning and when one of them retires, the burden of EMI's could be lessened in order that the repayment schedule is still maintained diligently.

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