Key points to consider while choosing your home loan interest rates

Buying a home has become much easier due to the customized home loan products offered by top banks and finance companies in India. Today, you can avail home loan with interest rates ranging between 8.50% to 9.50% with mere processing charge on it. Women applicants are given a special concession of 0.0.5% on the interest rate as well to let them live an independent life. Due to the stiff competition, often lenders come up with attractive interest rate deals. It's the crux of the entire home loan and your EMI, principal amount revolves around the interest rate offered by bank or firm to you.

There are ideally three types of home loan interest rates you can choose from for your housing loan. Whenever we talk about interest rates, we mostly rely on the financial expert to pick a suitable type for us. However, there are online interest rates calculators that will help you understand your loan structure, monthly installment by choosing a particular form of interest rate. Thus, it's wise to help yourself with some online research to make your selection go easy, and ensure you don't shell huge sum on the interest rates.  When you calculate, you will realize the actual amount you pay in excess on the interest rate is almost equal to your loan amount. Thus, 'a penny saved is a penny earned' fits perfect in the long run.

Few things that will help you reduce your home loan interest rates: strong income source & bank statement, good credit score, make a joint application, festive or promotional deals, take a loan when you're young and higher down payments. So, let's give you the basics of the three types of home loan interest rates being offered by the competitors in the market.

Fixed rates - As the name suggest, the rate is going to be constant for the whole tenure. It is preferred by risk-averse people who have a stable income source and believe in fixed payments on a certain date. However, they are slightly higher than the floating rates, so if you're comfortable, opt for it.

Floating rate - It is variable in nature, and it keeps fluctuating based on the government policies, and market health condition. It is lower than the fixed rate and keeps changing throughout the tenure. Experts say those who are willing to take the risk can opt for an adjustable rate because hopefully, the rates might lower down and you can enjoy affordable EMIs

Semi-fixed rates - It is fixed for a certain period of time and then turns into adjustable rate till the end of the loan tenure. It is suitable for borrowers who are ready to face fluctuation and adjust their budget as per it. Initially, they stay protected from market tides with fixed rates. It's good for youth who are willing to opt for home loans.

Few tips that will help you make the right choice:

•    Try to pay the maximum down payment, so that you borrow less. Eventually, lenders will come up with lower interest rates and can lend your suitable interest rates.

•    Maintain a healthy score of around 750+ and strong bank statement so that lenders are convinced about your easy repayments. You can negotiate with the lenders for low home loan interest rates.

•    Opt for the rate as per your affordability, prior financial commitment and retiring years. Don't overstress yourself with debt.

•    Prove your job or business stability for at least 2-3 years. Don't keep switching your jobs too often. Lenders want to see your stable source of income.

•    Pick your Apnapaisa home loan interest rates only after careful comparison online. Keep your financial portfolio and affordability in your minds, before you opt for the rates.