How can i get a home loan?

Answer 1

Almost all banks offer different interest rates for different tenures. The lowest interest is always offered for the short-term loans.

you will get the lowest interest rates for tenures up to 5 years. This will progressively increase as the term increases.

All banks offer floating rates and fixed interest rates loans, too.

A floating rate loan means that the interest rates prevailing will be applicable. So, if the interest rates go down your EMI will also reduce proportionately and vice versa.

A fixed interest rate means that your EMI is fixed and will remain unchanged despite fluctuations in lending rates.

Most experts feel that interest rates in USA are on their way down and so a floating rate is the best option.

But even experts cannot predict 10 to 15 years into the future.

So if you are going in for a longer tenure, a fixed rate option may be worth looking at.

Also banks offer loans on annual rest, monthly rest and even daily rest.

Annual rest means that your interest is calculated on an annual basis. This is the worst option as your repayment is accounted for only once a year.

The daily rest option is the best, though all banks do not offer this. What this means is that the moment you pay, it is accounted for and interest is only calculated for the balance amount of your loan.