Factors That May Determine You Choose the Right Home Loan Tenure

The facility of the home loan is one of the best funding solutions that you can rely on if you are looking to buy a new house. Based on your home loan eligibility, you can get a higher amount to fund a home of your choice.

home loan


But when it comes to the home loan, you ought to consider a few factors as it is a big-ticket solution. And the home loan tenure is one of them.

But when it comes to selecting the best home loan tenure, you ought to consider a few things. Read on and explore more as this post sheds more details!

  1. Your monthly income

Once you avail the home loan, then you would need to understand that the home loan EMI is going to hamper your outlays for a long time. And it is where your income plays a big role in deciding the tenure of housing finance. Opting for a shorter tenure would mean paying bigger home loan EMIs. On the other hand, selecting the longer tenure would lead to paying smaller loan EMIs. Hence, if you want to give some breathing space to your outlays, then you should opt for the longer tenure. The only disadvantage of the longer tenure is paying a bit higher interest charges compared to a shorter tenure.

  1. Your age

When it comes to the home loan tenure, your age does play a big role. The younger you are, the more workable years you will have. Thus, lenders may have no issues in letting you repay the loan money over a longer tenure. If you are aged, then you may not get the approval for a longer tenure as your workable years is less.

  1. Housing loan interest rate

The applicable home loan interest rate also affects the loan tenure. The rate of interest is applied on a yearly basis. It means that longer your tenure is, the higher will be the rate of interest that you would need to deal with. The shorter is your home loan duration; the more will be your EMI. But you will pay lower interest charges. If you want to calculate the exact rate of interest on your home loan, then there is an easy solution. You can use the home loan EMI calculator on a lender’s platform that you are willing to apply for the loan with. This way, you can know the payable EMI amount + total interest. Based on the loan tenure that you select, your interest rate will fluctuate.

 

  1. The property that you are buying

The next thing that matters while helping you determine your home loan tenure is the property that you are purchasing. Everyone wants to choose a property that may provide them with luxurious amenities. But with your desires, the price of the property is bound to go up. The higher is the price value of your property, the more burdens you will have on your income. If you do that, then you may have to pay way too higher EMI every month. And that’s where the selection of the property matters. You should buy a property on the home loan that your income can support and not what you desire. It will help you breathe easy and pay off the balanced EMI per month. If you are lack of ideas, then you should consider contacting known property advisors. They may shortlist some best properties under the budget that you may have for the home. This way, you can buy one that matches your needs and the repayment capacity the best.

read more: Secured Vs Unsecured Loan: Know Which Should You Choose?

If you are able to consider the discussed aspects while availing the home loan, then you can help yourself and pick the loan tenure that matches your needs the best.

The home loan tenure may go up to 20 years, and if your income is lower, then you should go for the maximum.

It will help you move into your home without worrying about finding it tough to deal with your expenses while making repayments.  

  

 

 

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