5 Reliable Ways To Get Best Mortgage Rates

The recession of 2007-08 was a big blow to the financial services sector. The common man since then has found it increasingly difficult to secure mortgage rates, which are viable in the long run. Hence, when choosing a financial institution one must keep the rating in mind which is basically a derivative of the performance of the institution in question.

Hence, it becomes essential to keep a few basic points in mind when looking for an optimum mortgage plan or home loan. In India home loans are being offered by a plethora of institutions, hence 5 key points to adhere would be:

i.) Terms and conditions:

One should do ample market research to understand where the terms and conditions are being given as per the goals which the borrower has set. Steadfast lenders will be identified by the flexibility which they will offer in transactions.

ii.) Loan disbursement T.A.T.:

The average lender takes about 10 to 15 working days for sanction of the loan. It is a further 3 to 5 days which will be required in order to finally release the funds to you. Thus, processing cycle should be carefully considered.

iii.) Cost:

A detailed comparison putting the interest rates being charged as well as prepayment terms should bring the proposal into much needed perspective. The cost structure of loan plans will vary for sure across service providers. However, the key is not too simply curtailing cost but also consider the value of other loan terms which may make the mortgage terms effectively sweeter.

iv.) Loan Repayment and Qualification:

Prepayment, foreclosing, settlement of balance outstanding, balance transfer to another lender are some of the internal factors of the agreement for mortgage which must be considered when selecting and comparing the various loan and mortgage products on offer  in the market.

v.) Interest rates and surreptitious charges:

It begins with valuation fees, to the down payment, processing, prepayment charges and a kaleidoscope of other fees and charges which might rain on you if at the outset care is not taken. Floating rates of interest are considered suitable for loans with longer tenures and shorter period home loans fixed rates of interest are better.

It is well known that private banks are very quick to raise rates of interest while providing quick disbursement of loan. While PSU banks will extremely stringent at the time of sanctioning the loan, they are a better option in the long term since they are not as aggressive in their approach towards revenue generation as private players.

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