Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

If one has to draw a parallel to a <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword>, marriage comes pretty close. There is a huge involvement of finances, emotions and a long time commitment. But don’t let this analogy send your thought trail into frenzy. Just like marriage, this can turn out to be the best decision of your life. 
 
Everybody has their own views on picking the right lender, tenure, interest rates, etc. It is not necessary that a home loan that is ideal for someone will work for you too. So what are the factors to be considered before you take the home loan leap? 
 
Read on to know more. 
 
1. Are you ready for a long time commitment? 
 
At least a decade long, if not more. Since EMIs will not leave your side for the years to come, this recurring expense must be provisioned for. Evaluate the current sources of income and their efficiency in fulfilling the EMI commitment. Now, consider how these sources will contribute a couple of years from now. Also, focus on making investments right now, the returns of which will contribute to EMI payments in the future. 
 
2. Have you considered the expenses to follow? 
 
Gaurav and Rita have been planning to invest in a house since last year. They took a stock of all their resources including savings, loan from family etc. Made their choice of house and went in for the home loan. Their liquidity was now restricted and cash flows tight. Rita now wanted to furnish the house and do it up according to their taste. She found an interior designer who understood her requirement completely. An action plan was made and budgets were discussed. Rita and Gaurav were now stressed due to shortage of funds and their unfulfilled dreams. Should they go in for an additional loan? Well, needless to say that will only add to their stress. Hence, it is important to access what matters most to you and factor in those expenses before making a loan application. 
 
3. Will this decision support other major responsibilities? 
 
Homes are only a part of other dreams. Each one of us has various responsibilities to fulfill, in order to live a satisfied and happy life. These are linked to our loved ones, healthcare, education, marriage, etc. These are large and important expenses. We need to consider these factors and estimate the amount required and the time available before incurring these expenses, to provision for them. It is important that planning for this is in place before planning for any additional loans. 
 
4. Is it an “attractive offer”? 
 
It is not hard to find loan offers, which appear lucrative to potential customers. The loan market is very competitive and doing this definitely helps the lenders product to stand out. However, prudent borrowers will dig deeper and not allow their decisions to be driven by the enticing numbers on the home loan advertisements. If something appears too good to be true then most definitely that will be the case. Question the numbers and offers, which vary largely from market offerings. Go in for the offer only after you know about all the associated charges and caveats. 
 
5. Is your decision backed by research and consulting? 
 
Often our decisions are influenced by the experiences of people around us or they come from our own past experiences. It is only natural to operate from a comfort zone, and there is nothing wrong in that. However, it is important to look at things from a fresh perspective in these competitive and dynamic times. Speak to the experts and evaluate the offer you have against the ones available in the market. Research can reveal facts which will enable you to make the right choice or at least negotiate better. Doing the homework pays off. 
 
 
(Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>) 
 
Image: Thinkstock

Want to take a home loan? Ask yourself these 5 questions before applying

<ul><li>Amazon Prime Day sale has come up with plenty of offers and discounts on home essentials</li><li>You can avail some very interesting deals on mops, ladders, tool kits and more.</li><li>This sale should be a good time to buy home essentials.</li></ul>Amazon Prime Day is<a href="https://www.amazon.in/b?node=976442031&amp;pf_rd_r=8S012A9DP6DAD2DFV636&amp;pf_rd_p=cfbc249b-8c5a-451d-9a6a-d8fd778f1dbd&amp;pd_rd_r=374ff792-5cd8-41a3-94b2-660291a3caa1&amp;pd_rd_w=iZ622&amp;pd_rd_wg=AMH5C&amp;ref_=pd_gw_unk"> live now</a> for two days. You can make the most out of the discounts and offers across every category during the sale. It is offering you various offers and deals on <a href="https://www.businessinsider.in/insider-reviews/best-small-vacuum-cleaners-in-india/articleshow/83921933.cms">home essentials</a> which includes- power strips, folding ladders, tool kits and more. If you are looking to buy home essentials, the Prime Day sale is a good time as home essentials have great discounts and deals going on. If you want to explore more deals on wide range of categories from electronics, gadgets to appliances you can go to <a href="https://www.businessinsider.in/tech/news/get-best-deal-on-laptops-smartphones-smartwatches-and-fitness-trackers-in-amazon-sale/articleshow/84751466.cms">the best deals and offers during the sale</a> compiled by us. You must have a Prime membership to avail these deals. If you do not have access to Amazon Prime, you can get the annual membership at ₹999. You can purchase different Amazon Prime plans for ₹129 for a month and for ₹329 for three months. Click on <a href="https://www.amazon.in/amazonprime?_encoding=UTF8&amp;%2AVersion%2A=1&amp;%2Aentries%2A=0">this link</a> and subscribe to be a Prime member. <cmsannotation type="cmsannotation" annotationid="Deals on spin mop" comment="subhead" text="Deals on spin mop">Deals on spin mop</cmsannotation> Save ₹721 Esquire Elegant’s spin mop Save ₹721 and pay only ₹578 for this spin mop from Esquire Elegant which is 56% less than its MRP ₹1299. It offers you hassle-free usage and convenient moving with its wheels. <cmsannotation type="cmsannotation" annotationid="B08D3N53JT" comment="amazoncard" text="B08D3N53JT">B08D3N53JT</cmsannotation> 51% off on Spin Mop by Spotzero You can now get this spin mop at ₹999 which is 51% less than its MRP of ₹2024. It has an extendable mop handle for convenient usage and has microfiber cleaning technology. Also, to make lifting easy it comes with flexible handles. <cmsannotation type="cmsannotation" annotationid="B081HNGY55" comment="amazoncard" text="B081HNGY55">B081HNGY55</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Deals on foldable ladders" comment="subhead" text="Deals on foldable ladders">Deals on foldable ladders</cmsannotation> Save ₹4000 on Cipla Plast folding ladder Looking for a heavy-duty and durable folding ladder? Check this Cipla Plast ladder available at ₹2999 only which is 57% less than MRP ₹6999 and makes you save ₹4000. It features a safety clutch lock and anti-skid shoe which should help you stay safe. <cmsannotation type="cmsannotation" annotationid="B00IPARTUQ" comment="amazoncard" text="B00IPARTUQ">B00IPARTUQ</cmsannotation> Save ₹7108 on Trendy folding ladder It is a good time to buy this foldable ladder from Trendy as it is offering 75% off which makes the ladder available at ₹2392 and save ₹7108. The ladder is said to be sturdy, lightweight and durable with a space-saving design. <cmsannotation type="cmsannotation" annotationid="B07Y6M82QG" comment="amazoncard" text="B07Y6M82QG">B07Y6M82QG</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Deals on tool kits" comment="subhead" text="Deals on tool kits">Deals on tool kits</cmsannotation> 54% off- Bosch Hand Tool Kit If you are looking for a compact tool kit, your search ends here. You can get this hand tool kit from Bosch at 54% off at a price of ₹1139 from its MRP ₹2500. This tool kit comprises 12 pieces of accessories that should help you fix furniture and take measurements. <cmsannotation type="cmsannotation" annotationid="B0711Y97RQ" comment="amazoncard" text="B0711Y97RQ">B0711Y97RQ</cmsannotation> Flat 50% off on AmazonBasics 32 Piece Household Tool Set You can get a flat 50% off on this household tool kit from AmazonBasics. This tool kit is now available at ₹1699 only which makes you save ₹1701. This tool kit features ergonomic handles that should make them convenient to hold and use. The tools are said to be extremely durable. <cmsannotation type="cmsannotation" annotationid="B07W4KVGWZ" comment="amazoncard" text="B07W4KVGWZ">B07W4KVGWZ</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Deals on power strips" comment="subhead" text="Deals on power strips">Deals on power strips</cmsannotation> 57% off on Live Tech power strip The power strip from Live Tech has a price drop down and is now available at ₹899 only which makes you save ₹1200. The power strip is said to have a compact size and features 6 USB ports and 3 universal sockets which should help you charge your gadgets at the same time without hassle. <cmsannotation type="cmsannotation" annotationid="B0799NCP8G" comment="amazoncard" text="B0799NCP8G">B0799NCP8G</cmsannotation> There would be an additional discount for users with HDFC Bank cards. You can avail 10% instant discount with HDFC debit card, credit card, and EMI transactions. <cmsannotation type="cmsannotation" annotationid="SEE ALSO:" comment="subhead" text="SEE ALSO:">SEE ALSO:</cmsannotation> <a href="https://www.businessinsider.in/tech/news/best-deal-and-discount-on-samsung-mi-redmi-iphone-oneplus-smartphones/articleshow/84675808.cms">Amazon Prime Day 2021: Best deals, offers on smartphones</a> <a href="https://www.businessinsider.in/tech/news/amazon-prime-day-2021-best-deals-on-gaming-laptops-keyboards-and-more/articleshow/84701404.cms">Amazon Prime Day 2021: Best deals on gaming laptops, keyboards and more</a>

Amazon Prime Day 2021: Best deals and offers on home essentials

As if selecting the right property wasn’t a task in itself, <keyword id="6371902" type="UNKNOWN" weightage="20" keywordseo="home-buyers">home buyers</keyword> also have to spend sleepless nights before being able to arrange the requisite finances for buying the property. Believe it or not, it is precarious as most often buyers end up paying higher <keyword id="6388045" type="COMPANY" weightage="20" keywordseo="emis">EMIs</keyword>, thus burning a hole in their pockets. 
	 
	“The most challenging aspect of home ownership is invariably financing. Questions like which lending institution to approach, what loans should be applied for, how much loan to be applied for and how much time will it take for approval need to be answered,” said Anil Pharande, chairman and managing director of Pharande Spaces. 
	 
	He further added, “The safest move on this front is to become pre-approved for a home loan. Doing so means that this tricky and time-consuming aspect of home purchase has already been dealt with, and that one can enter the market focused squarely on the best options. Getting pre-approved also puts you in the strongest possible place when it comes to negotiating the best deal.” 
	 
	Understanding pre-approval 
	 
	According to Pharande, pre-approval for a home loan is a written confirmation extended by the lender to the potential buyer. He explained that before issuing a pre-approval certificate, bank officials conduct a thorough ‘credit worthiness’ check of the applicant. 
	 
	“This involves collecting all the data related to your past and current debts, repayment history, disposable income, credit card record, etc. and running it through software that will calculate whether you could be a likely candidate for approval,” he noted. 
	 
	On the other hand, a pre-approval is quite different from pre-qualification for a home loan. In the case of a pre-qualification for a home loan is generally like an ‘educated estimate’ provided by the lender. The lender gives you an estimated idea of the amount it can loan. However, it does not mean you will get a home loan for sure. 
	 
	Getting the pre-approval certificate 
	 
	The chances of getting a pre-approved loan become higher when you are able to offer credible references to the lender. “While seeking to become pre-approved, it is always best to approach a lending company that you know or can be referred to by a friend, colleague or family member. The lender needs to have the assurance that you are a credible borrower. However, do not stop searching after you have met the first possible lender,” said Pharande. 
	 
	Once applied, a loan officer from the lending company visits the applicant and helps them streamline their financial statements which include bank statements, investments, holdings, salary slips, income tax returns and other information related to your finances. Once, the process is over, an applicant is usually offered the pre-approval certificate. 
	 
	How you stand to benefit? 
	 
	This tedious process often gives you an approximate idea of the budget you should ideally have for buying a house as well as the maximum loan amount you are eligible for. The biggest benefit being that a home buyer will not get an assured loan from its lender. 
	 
	However, Pharande throws a word of caution here. He recommended that a home buyer should try to obtain a customized loan approval from its lender. “The letter states that the finances are ready when you choose to ask for them. It is highly advisable to work with lenders who have the ability to provide customized pre-approval letters, inclusive of the maximum purchase price. Sellers could get greedy if they see a greater loan amount than their quote,” he warned. 
	 
	Besides, a pre-approved home loan also gives you the opportunity to get hold of the best deal as and when available, thus saving you the trouble of worrying about the funds.

Know why pre-approved home loans works
best for home buyers

Taking <keyword id="6354730" type="UNKNOWN" weightage="100" keywordseo="Home-loan">home loan</keyword> for the first time can be jittery as a number of questions cloud our minds. Doubts like whether it is the right time, if the property is suitable, which bank to seek loan from, etc, keep cropping up. 
 
Some people are almost cavalier when sealing a home loan deal and purchasing a property, and end up realising their mistake of not doing enough homework. 
 
So, one has to be very careful while taking the home plunge, because buying a house is much more than securing a home loan. When you decide on buying a home, make sure you know the long-term implications of your move and your capacity to make repayments. 
 
Here are 7 tips for beginners looking for a first time home buy 
 
-Evaluate your monthly cash flow and assess ways to save more 
Get your basic calculations rights. Make sure you list out your income and expenditure details regularly for at least four months to assess some basic factors like what extra expenditure you can cut, how much money you can save, and how large repayment instalments you can afford. This will not only make accounts clear in your mind but also make it easier to plan your expenses well. Your rented apartment may be bigger than what you need right now, consider moving into a smaller apartment to save on rent. Move in with your parents for a year or two, if possible. Only when you are convinced that you are saving enough and to the best of your potential should you move ahead with a house and loan search. 
 
-Select what you can really afford 
Now that you have a fair understanding of your buying capability, make an assessment of what you can afford. Do not take impetuous decisions while selecting property. Never select a house that will put more financial burden on you than you can carry in your present circumstances. Do not indulge in wishful thinking and assume promotions and appraisals down the years will help you tide in the payments. Apart from affordability, also take into account factors like safety, location, public transport accessibility, among other conveniences. Also factor in the cost potential of the property, whether it promises to surge in value with time. 
 
-Save for down payment and seek help if needed 
It is advisable to save as much you can to make a down payment for the purchase. The more you can pay without a bank loan help, the better it would be for you. Apart from saving some money, sell some assets if needed; or seek help from parents or other willing family members for making a substantial down payment. You won’t need to pay interest back to your family, just the principal some. The lesser loan you take from the bank, the shorter will be the payment course and the lesser the interest payment. 
 
-Check with multiple banks 
Do your homework well. Do not just plunge into a deal with the first bank you speak to. Make sure you go around and compare different deals, different banks are offering. Opt for the best deal available. Sometimes people hurry into a deal with a bank and realise later that another bank could have made a better and more profitable deal. 
 
-Go for loan consolidation 
When people decide to buy a home, they often have another running loan or liability. For example an auto loan which would now run parallel to the home loan. In such circumstances, consolidation of loans is a good option. Nobody likes to pay two EMIs simultaneously; a loan consolidation reduces the amount payable per month resulting in a single monthly payment instead of multiple payments. By consolidating two simultaneously running loans, one would not only reduce the instalments per month but also reduce the rate of interest as compared to what one would be paying on multiple repayments. 
 
-Have at least 3 months payments in your account 
When you activate a loan, you must not be living from paycheck to paycheck. Make sure you have some cushion money in your account to fall back upon. You should have at last three months of payment equivalent money in your account even after making the down payment. 
 
-Have contingency funds 
Some people buy a house without realising the liabilities it will bring. They end up forfeiting the buy, and this harms their credit score. Unforeseen events and exigencies can happen to anybody. One needs to be very careful and always have a Plan B. Make sure there is a contingency fund such as an FD that can be en-cashed on emergency or a PPF fund that can be relied upon in case an unfortunate incident like a pink slip happens. These emergency funds can come in the form of life insurance deposits, FDs, or mutual funds that you have invested in. 
 
(Author of this article is Brijesh Parnami, CEO, Destimoney Advisors) 
 
(Image: Thinkstock)

These 7 loan tips can help first time home buyers. Find out how

Amazon is currently hosting the Great Republic Day Sale on its platform. Today is the second day of the sale and it will go on till January 23. The company has announced offers on smartphones, electronics, home appliances, apparels and more. The e-commerce giant is offering a 10% instant discount up to ₹1,500 for SBI credit card holders on a minimum transaction of ₹5,000. Users can also avail a no-cost EMI option and exchange offers on several devices. In this post, we look at some of the best deals on appliances such as refrigerators, microwaves and air purifiers. <cmsannotation type="cmsannotation" annotationid="LG 260L 3 Star Double Door Refrigerator" comment="subhead" text="LG 260L 3 Star Double Door Refrigerator">LG 260L 3 Star Double Door Refrigerator</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B01DM8HR1Q" comment="amazoncard" text="B01DM8HR1Q">B01DM8HR1Q</cmsannotation> The LG 260L refrigerator is a good option if you are looking for families with around 4 members. It comes with a smart inverter compressor that offers good freshness retention and produces less noise. It features a moist balance crisper to maintain optimum level of moisture. It comes with a 3-star energy efficiency rating. <cmsannotation type="cmsannotation" annotationid="Samsung 253L Double Door Refrigerator" comment="subhead" text="Samsung 253L Double Door Refrigerator">Samsung 253L Double Door Refrigerator</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B083461G9M" comment="amazoncard" text="B083461G9M">B083461G9M</cmsannotation> The Samsung 253L Double Door Refrigerator is another good option if you are looking for a double door refrigerator for a family of around 4 members. It features a digital inverter technology that ensures energy efficiency and less noise. It offers stabilizer free operation and comes with smart connect inverter technology. <cmsannotation type="cmsannotation" annotationid="Samsung 192L Single Door Refrigerator" comment="subhead" text="Samsung 192L Single Door Refrigerator">Samsung 192L Single Door Refrigerator</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B08345SMSM" comment="amazoncard" text="B08345SMSM">B08345SMSM</cmsannotation> The Samsung 192L Single Door refrigerator is a good option if you are looking for an affordable refrigerator. It is suitable for families with up around 3 members. It features digital inverter technology and supports stabilizer free operation. It offers an anti-bacterial gasket and comes with a safe clean back that makes cleaning easier. <cmsannotation type="cmsannotation" annotationid="IFB 30L Convection Microwave Oven" comment="subhead" text="IFB 30L Convection Microwave Oven">IFB 30L Convection Microwave Oven</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B016ZLKJSU" comment="amazoncard" text="B016ZLKJSU">B016ZLKJSU</cmsannotation> The IFB 30L Convection Microwave Oven is suitable for large families and can be used for baking, grilling, reheating, defrosting and cooking. It features multi-stage cooking and comes equipped with 101 auto cook menu options. It comes with an auto switch-off option and protects the microwave’s heating element from getting too hot. <cmsannotation type="cmsannotation" annotationid="AmazonBasics 23 L Convection Microwave" comment="subhead" text="AmazonBasics 23 L Convection Microwave">AmazonBasics 23 L Convection Microwave</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B07RTC8WSD" comment="amazoncard" text="B07RTC8WSD">B07RTC8WSD</cmsannotation> The AmazonBasics 23L Convection Microwave offers a capacity of 23 litres and is suitable for families with 3 or 4 members. It can be used for cooking, heating, baking, grilling and defrosting. It comes with 65 auto cook menu options to help you quickly cook your food. You can also use the pre-heat function to cook your food evenly. <cmsannotation type="cmsannotation" annotationid="LG 20 L Solo Microwave Oven" comment="subhead" text="LG 20 L Solo Microwave Oven">LG 20 L Solo Microwave Oven</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B00M52J2QY" comment="amazoncard" text="B00M52J2QY">B00M52J2QY</cmsannotation> The LG Solo Microwave Oven features a capacity of 20-litres and is suitable for small families. It can be used for cooking, defrosting and reheating your food. It comes with the company’s Intellowave technology that ensures faster and healthier cooking. It offers 44 auto cook options, including 28 Indian dishes. It has an anti-bacterial easy clean coating that prevents bacterial growth and makes it easy to clean. <cmsannotation type="cmsannotation" annotationid="Dyson Pure Cool Link Tower" comment="subhead" text="Dyson Pure Cool Link Tower">Dyson Pure Cool Link Tower</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B078RBFG6G" comment="amazoncard" text="B078RBFG6G">B078RBFG6G</cmsannotation> The Dyson Pure Cool Link Tower Air Purifier is a premium air purifier that uses a 360-degree glass HEPA filter and a Tris-coated activated carbon filter and can remove 99.95% of allergens and pollutants that are as small as 0.1 microns. It is equipped with the company’s Air Multiplier technology that enables it to offer quick air purification. It also works with Amazon Alexa, allowing you to use voice commands. <cmsannotation type="cmsannotation" annotationid="Philips AC1215/20 Air Purifier" comment="subhead" text="Philips AC1215/20 Air Purifier">Philips AC1215/20 Air Purifier</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B01L6MT7E0" comment="amazoncard" text="B01L6MT7E0">B01L6MT7E0</cmsannotation> The Philips AC1215/20 Air Purifier is another good option if you are looking for a pocket-friendly air purifier. It features a 4-stage filtration system that uses a pre-filter, an activated carbon filter and double-layered HEPA filter to eliminate pollutants up to 0.2 microns. It is equipped with an LED that allows you to monitor the real time air quality. <cmsannotation type="cmsannotation" annotationid="Honeywell Air Purifier" comment="subhead" text="Honeywell Air Purifier">Honeywell Air Purifier</cmsannotation> <cmsannotation type="cmsannotation" annotationid="B0753HZPVS" comment="amazoncard" text="B0753HZPVS">B0753HZPVS</cmsannotation> The Honeywell Air Purifier is a compact air purifier that features a 3-stage filtration system. It uses a combination of a pre-filter, a HEPA filter and an activated carbon filter to eliminate pollutants up to 3 microns in size. It offers low-sound operation and is energy efficient. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/best-smartphone-deals-and-discount-on-amazon-great-republic-day-sale/articleshow/80358909.cms">iPhone 12 mini, Galaxy S20 FE, Redmi Note 9 Pro Max and other smartphone deals on Amazon Great Republic Day sale</a> <a href="https://www.businessinsider.in/tech/news/best-deal-in-55-inch-and-43-inch-smart-tvs-on-amazon-great-republic-day-sale/articleshow/80363461.cms">Sony Bravia 55-inch TV, OnePlus 43-inch TV, Mi TV 4A Pro and other television deals on Amazon Great Republic Day Sale</a> <a href="https://www.businessinsider.in/tech/news/samsung-galaxy-buds-oneplus-buds-z-and-other-truly-wireless-earphones-on-discount-on-amazon-great-republic-day-sale/articleshow/80367816.cms">Samsung Galaxy Buds+, OnePlus Buds Z and other truly wireless earphones on discount on Amazon Great Republic Day Sale</a>

Best deals on refrigerators, microwave oven and air purifiers on Amazon Great Republic Day Sale

One of the primary concerns while taking a loan is the rate at which the loan is being offered as the loan rates help in selecting the lender to a great extent. The borrower is also concerned whether the loan is extended at a fixed rate or a floating rate. 
 
Fixed Rate loan are loans where the rates remain constant throughout the loan period, while in floating rate loans, the rates are linked to market conditions and may change periodically. 
 
Floating rates may be linked to the base rate, inflation or other parameters; each bank may select its own methodology to fix this base rate. These rates have to be declared by the bank each quarter. 
 
Common sense says if you expect the rates to rise then you borrow at a fixed rate so that you can lock in your loan at a lower rate and if the rates are expected to fall then you borrow at floating rates so that you can benefit from the falling rates. 
 
Are Rates Really Fixed for the Loan Tenure? 
 
Fixed and floating rates have their advantages and disadvantages. Fixed loan rates are generally priced higher than the floating rate loans. 
Most banks have the Force Majeure (superior force/ chance occurrence/unavoidable accident) clause in the fixed loan agreement; as per this clause the bank may change the rates as it deems to be suitable depending on the market conditions or as per its internal policies. 
 
Banks may specify a period of 3 to 5 years after which they are allowed to change the interest rate. Some banks fix a regular interval of 3 to 5 years after which they will review the rates. This means that every 3-5 years, the rates are reviewed while some may do it if the conditions so warrant. Most banks, however, keep this clause in the agreement to keep themselves safe. 
 When the applicant signs the loan agreement, he/she may overlook this clause that allows a bank the discretion the revise the loan rate. If you plan to take a <keyword id="788865" type="UNKNOWN" weightage="20" keywordseo="fixed-loan-rate">fixed loan rate</keyword> @ 11% while choosing to overlook the floating rate loan @ 10.% thinking that you will be paying the same EMI throughout the term as the interest rate will not change then you need think again. 
 
When a borrower chooses a fixed rate loan he or she is choosing a loan that is more expensive (when compared to floating rate loans) as he or she is looking for the certainty that comes with it. The borrower presumes that he/she will be able to plan his finances better as the EMI remains constant. Thus if the rates are revised (generally in the upward direction) he/she may be left unprepared to bear the additional burden per month. Not only does the borrower feels cheated the primary reason for taking an expensive loan is defeated but he/she may also have to make considerable modifications to his/her monthly budget to pay the higher installments. 
 
What Should the Borrower Do? 
 
While as a borrower you may feel cheated if you are caught unaware with an increased EMI burden, the lender cannot be faulted. They put the clause in the loan agreement, whether fine print or in bold the clause is there. As a borrower it is your responsibility to read and understand all aspects before signing the agreement. 
 
So if you are taking a loan or planning to take one, check about the reset clause in the agreement and be prepared for the additional burden that you may have to shoulder during the loan tenure. Though it may be rare but there might be financial institutions that may offer loans that are truly fixed without any reset clause; so if you are really sure that you want only fixed rate loan you could opt for them. 
 
Either ways it’s better to be sure about what you are signing. Whether it’s a floating or a fixed rate loan; each has its advantages. Be sure about other terms and conditions too. 
 

	
		
			(Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>) 
			 
			(Image: Thinkstock)

Is your home loan rate really fixed?

<div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div><ul class="summary-list"><li>Getting approved for a mortgage can be complex, but if you do things right, you may be able to get a lower <a href="https://www.businessinsider.com/how-to-find-the-best-mortgage-rate">mortgage interest rate</a>.</li><li>Your <a href="https://www.businessinsider.com/what-is-a-good-credit-score-to-buy-a-house">credit score</a> and credit report are vital for mortgage approval. Work on <a href="https://www.businessinsider.com/how-to-prepare-credit-for-a-mortgage">improving your credit score</a> to get the best rate.</li><li>Your income and income compared to your debt obligations are other important parts of getting a mortgage, so don't ignore that key part of the approval process.</li><li>Shopping around and working with your lender can save you even more compared to published interest rates.</li><li><a href="https://www.businessinsider.com/yourmoney?utm_source=bullet">Read more personal finance coverage</a>.</li></ul>If you are looking to <a href="https://www.businessinsider.com/how-to-buy-a-house-step-by-step-guide">buy a home</a>, you are likely preparing for the biggest purchase of your life. To finance a home purchase, many households look to a mortgage loan from a trusted lender. Mortgages make sense for millions of people.&#xa0;To get the best deal, you can follow these steps to get a lower <a href="https://www.businessinsider.com/how-to-find-the-best-mortgage-rate">mortgage interest rate</a>.<h2>How to get a lower mortgage interest rate</h2><h3>1. Improve your credit</h3>There are two main places a lender looks when approving a mortgage. The first stop is usually <a href="https://www.businessinsider.com/how-to-get-free-credit-report-check-credit">your credit report</a>. If you are applying for the loan jointly with a spouse or other partner, it's a team effort, so you should work with them on their credit, too.The two biggest factors in your <a href="https://www.businessinsider.com/how-to-prepare-credit-for-a-mortgage">credit score</a> are your payment history and account balances. Make sure to always pay on time and work to pay off any credit card and <a href="https://www.businessinsider.com/what-is-a-credit-line-how-to-get-one">line-of-credit balances</a> before applying for a new mortgage. It's a good idea to take at least a six-month moratorium from applying for new accounts as well.<h3>2. Optimize your debt-to-income ratio</h3>As part of the loan approval process, also known as underwriting, the bank will look at all of your current debt payments. They will use your credit report to gather your minimum payments on every credit card, student loan, car loan, and other debt under your name on your credit report.To decide if you can afford the mortgage, the bank will compare your monthly income to your monthly debt obligations. This is known as <a href="https://www.businessinsider.com/how-to-calculate-debt-to-income-ratio">your debt-to-income ratio</a> (DTI). If you have any way to increase your income and pay down outstanding debts, you'll have the best possible DTI when applying for your mortgage.<h3>3. Shop around for the best deals</h3>In addition to qualifying for the best rate on your own, you should pick a lender with the lowest interest rates. Just because you have your checking account at a bank down the road doesn't mean they offer the best rates. The internet makes it easy to <a href="https://www.businessinsider.com/how-to-find-the-best-mortgage-rate">quickly compare the best rates</a>.When I bought my home in Portland, Oregon, I talked to two local lenders and one nationwide credit union. I found the best rate given my income and credit came from PenFed Credit Union, so that's where I got my mortgage.&#xa0;For my current home, I shopped around again and found that a California-based lender, New American Funding, had the lowest rate for my finances.&#xa0;You have to shop around to get the answer for your unique situation.<h3>4. Consider points and promotions</h3>Some lenders offer discounts when you qualify or promotions for lower rates. Also, look at <a href="https://www.businessinsider.com/how-to-buy-a-house-with-no-money-down-home-loans">federal or state programs</a> and loan programs from the VA, FHA, and other government loans if you are eligible. If you're not sure, talk to a prospective lender or mortgage expert to learn more.Points are a way to lower your interest rate by making a cash payment upfront. Points can save you money in some cases, but the math doesn't always add up. Try out a mortgage calculator that supports points to decide if it's a good deal for you.<h2>Small savings on a big loan add up fast</h2>For a savings account with a $1,000 balance, the difference of a 0.25% interest rate isn't that big of a deal. But for a mortgage with a six-figure balance and 30-year payback period, a quarter of a percent is huge.&#xa0;When it comes to the biggest purchase of your life, even a small interest rate savings can be worth tens of thousands of dollars. Using these steps, you can find the lowest possible interest rate for your finances.How much house can you afford? Use this calculator to find out:<h3>More coverage from <a href="https://www.businessinsider.com/category/personal-finance-how-to">How to Do Everything: Money</a></h3><ul><li><h3><a href="https://www.businessinsider.com/how-to-prepare-credit-for-a-mortgage">How to prepare your credit for a mortgage</a></h3></li><li><h3><a href="https://www.businessinsider.com/how-to-find-the-best-mortgage-rate">How to find the best mortgage rate</a></h3></li><li><h3><a href="https://www.businessinsider.com/what-is-private-mortgage-insurance-definition-cost">What is private mortgage insurance?</a></h3></li><li><h3><a href="https://www.businessinsider.com/how-to-calculate-mortgage-payment">How to calculate your mortgage payment</a></h3></li></ul>Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you. If you take action based on one of the recommendations listed in the calculator, we get a small share of the revenue from our commerce partners.<div></div><div></div><div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/escape-sinking-car-survival-skills-2017-4">Here's how to escape a flooding vehicle</a></h3> <div> </div> </div>

How to get a lower mortgage interest rate on your home

For any salaried individual, <a href="http://www.businessinsider.in/searchresult.cms?query=home+loan">home loan</a> is a very important decision and a person takes each and every step cautiously while securing a <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword>. You look for best deals and offers to avail a home loan. 
 
In this search, people go on internet and search for various deals. In this bid, they also come across various imposters, promising lucrative offers and home loans. 
 
Many people, in the bid to get the best, get duped by the imposters and it can be devastating to state the least! 
 
On internet, the messages are even replete with all the coordinates of the contact person who is more often than not a super salesman! 
 
In a bid to “save” a few bucks, you realise that you have been taken for a ride in the name of an attractive home loan offer. Therefore, to save you from such traps, here are some pointers that should serve as red flags for you, if you are in the pursuit of a home loan. 
 
An unknown company with a flashy newspaper/ internet ad 
A home loan or a mortgage is a fairly sophisticated product that authorized lenders are supposed to dole out. These <a href="http://www.businessinsider.in/searchresult.cms?query=lenders">lenders</a> have a fool-proof mechanism in place and will assess your credit worthiness by checking your <a href="http://www.businessinsider.in/searchresult.cms?query=cibil+score">CIBIL score</a> and CIBIL report before it even approves your loan application. Even when your application is approved, many checks and balances are in place to ensure that there are no loopholes in the lending process. 
 
Sure, there is a lot of paperwork involved and some upfront processing fee, but a lender of repute is clear about such things and makes the time and effort to explain you every such clause. Rest assured, this is for your protection. Therefore, if you come across an ad, that promises you scanty paperwork or speedy disbursal, it should serve as the first sign of caution, no matter how attractive the terms of the loan seem in the advertisement. Here are some obvious traps that you must stay away from. 
 
Advance fees 
If any company is asking and insisting for a fee in advance to approve your loan while promising the moon, this should set the alarm bells ringing in your mind. An authorized lender can only ask for a loan processing fee after your loan application has been approved. 
 
Unwilling to answer tough questions 
If any company representative is unwilling to explain the terms of the so-called “attractive loan” or squirms the moment you start asking tough questions, you should not waste a moment in guiding him to the door. Any lender worth his salt, should have nothing to hide or be uncomfortable about when a prospective customer asks for details. In fact, he or she should be willing to explain things to you as many times as you may want. If there is no sign of that happening, you obviously have a problem in hand. 
 
Pressure tactics 
Some salesman of fraud companies are glib talkers and may even use pressure tactics to get you to sign documents without giving you an adequate chance to go through the documents. Do not succumb to any pressure and insist on reading all the documents carefully. Chances are you will discover the fraudulent terms and conditions right away, when you start reading these documents! 
 
Asking for personal or financial information online 
In this hyperconnected world, it does not take much time, money or effort to create an authentic looking webpage that is in a pursuit to extract sensitive financial or personal information. Any webpage that claims to be “approved” by the government or a reputed lender and is asking you for any such information should serve as a red alert to you. No authorized lender or even the government has the right to ask for any such information online that may cause you any monetary loss. 
 Such fraudulent loan companies target salaried individuals who are prone to accessing a lot of credit and do not have a great <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> to boast of in the first place. That is the reason that such people walk willingly into the trap of such fraudsters. Do remember, that in order to get a home loan, you should work towards having a satisfactory CIBIL score. 
 
If you have a good <a href="http://www.businessinsider.in/searchresult.cms?query=credit+history">credit history</a> and your CIBIL score is well above 750, there is no dearth of reputed lenders who will vie for your attention and be more than willing to give you a home loan. 
 
(About the author: Rajiv Raj is the director and co-founder of<a href="http://www.creditvidya.com/">www.creditvidya.com</a>.) 
 
(Image: Thinkstock)

Here are five ways to spot a home loan scam

There are as many as 50+ lenders in India who will be willing to give you a <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">Home Loan</keyword>. But whom should you choose? Do not tread the easy way of taking it from whosoever arrives first. 
 Here are 5 most important things you should ask the home loan lender to ensure that you get the <keyword id="2908399" type="UNKNOWN" weightage="20" keywordseo="best-home-loan-offer">best home loan offer</keyword>: 
 
1. Do not chase the cheapest rate of interest. Find out a competitive rate and focus on the other aspects of the loan. Cheapest is not the best deal so look beyond it. 
 
2. Choose a floating rate of interest over fixed, even if the latter has an attractive rate offer. There will be twists in fixed products. Many of you miss to note that there's a foreclosure penalty applicable within the fixed term. And moreover, the margin changes after the fixed period is over, if the offer rate was for teaser period. 
 3. Ensure you opt for a lender who offers daily reducing balance and not monthly. It will not make any difference unless you plan a partial repayment. In a monthly reducing balance plan, even if you partially close an amount in between two <keyword id="6357050" type="COMPANY" weightage="20" keywordseo="EMI">EMI</keyword> dates, they consider the repayment only from the next EMI date, thus making you pay interest even on the repaid sum for those days! You will not know, but it will cost you heavy. 
 4. Do not get biased by your previous experience with another product, or what your friends, relatives &amp; colleagues. This is <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword>, a pure mathematical product, so do your maths &amp; decide accordingly. 
 
5. Read all online remarks, which you will anyways do. But 99% of them are otherwise motivated. You will find that those who are badmouthing a lender probably use funny dummy ID-s like kingpin, lisahayden, bigboy, greatguns, etc. So before taking their comments seriously have a look at the IDs they’ve used. 
 6. Your wealth manager, bank relationship manager, <keyword id="6358896" type="POSITION" weightage="20" keywordseo="Chartered-Accountant">chartered accountant</keyword>, tax-planner and your finance controller or <keyword id="2908396" type="UNKNOWN" weightage="20" keywordseo="CFO-in-office">CFO in office</keyword> are great. Seek their guidance to reach the right <keyword id="367050" type="POSITION" weightage="20" keywordseo="mortgage-broker">mortgage broker</keyword>. Mortgage is a specialised product. Have you ever heard a heart surgeon treating patients for skin rashes? Similarly, a mortgage broker selling mutual fund and <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> will be as good as a <keyword id="252520" type="POSITION" weightage="20" keywordseo="real-estate-broker">real estate broker</keyword> selling tour-tickets and running an STD shop with photocopy machine! Therefore, chose the best in industry. 
 
7. Try opting for a new-age product which saves you money. Standard vanilla home loan are cliche' and won't work for most of my clients who have surplus funds and taking the loan for tax-savings or waiting another property to be sold and pay off their debts. These days, borrowers have various requirement rather than just borrowing for the need of money. 
 
8. Look at the service perspective carefully; you are getting into a long-term relationship. Don't jump on the first lender approaching you or the lowest rate of interest or may be, what your friend's father suggests. You will need a lot of services like- tax certificates, provisional amortisation, list of documents, part closure services, reduction in the tenure/EMI upon partial repayment. If you are going to continue a loan for a long term, there may be a requirement of change of address if as you may shift from one city or country to another. Therefore, never compromise on the aspect of post-sales service. 
 9. Always ask for a comparison between at least 6 major lenders from your <keyword id="2908397" type="POSITION" weightage="20" keywordseo="mortgage-adviser">mortgage adviser</keyword>. And again, do not decide on basis of the lowest rate. Look at the base rate, the margin offered, whether any other product is being pushed, how many times the lender has reduced rate in past two years, what is the maximum tenure offered, and how is the eligibility calculated and most importantly whether a property similar to yours has been funded by this lender earlier. 
 
10. Time taken for processing the loan. This may sound unimportant, but my noting it last doesn't indicate that at all. When the builder starts sending you delay-penalty notices or the seller withdraws from the deal or increases the sale value, trust me, this becomes the top priority on the chart. What will be the point of checking out so many lenders and settling for the one who can only offer, but cannot execute? 
(Image: Thinkstock) 
 

(About the author: This article has been contributed by Sukanya Kumar, founder and director of RetailLending.com.)

You Searched For "best home loan deals" and got 9 results

Want to take a home loan? Ask yourself these 5 questions before applying

Rajiv Raj

Amazon Prime Day 2021: Best deals and offers on home essentials

Shradha Aneja

Know why pre-approved home loans works best for home buyers

Purba Das

These 7 loan tips can help first time home buyers. Find out how

Guest Author

Best deals on refrigerators, microwave oven and air purifiers on Amazon Great Republic Day Sale

Rounak Jain

Is your home loan rate really fixed?

Rajiv Raj

How to get a lower mortgage interest rate on your home

Eric Rosenberg

Here are five ways to spot a home loan scam

Rajiv Raj

10 tips to get the best home loan offer

Guest Author

Popular Keywords

Buying Guides