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What Are The Advantages Of Home Loan And Disadvantages Of Home Loan?

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Hammad Hassan Profile
Hammad Hassan answered
The advantages of home loan is that it gives you the opportunity through which you can build your own house, your own place where you can spend the rest of your life according to your own standard and lifestyle. A home loan gives you the facility to get the complete money that you need to build your house and pay the amount that you have taken for the loan in instalments without giving you mental pressure of getting out such a big amount from your business or if you are salaried then saving such big amount in years is a difficult task and saving such a big amount in the world of today takes an age. Home loan provides an advantage that you don't have the pressure that you will have to pay that amount in one go you have the option to pay the instalments in time and complete the tenure and as your loan gets pay-off you are living in your own house as well where you feel relaxed and calm down. The disadvantages of loan home are that the interests rates have really gone high now and for a salaried person pertaining a home loan from a bank is really very suffering because he has to pay the interest+ principal upon every instalments and after the loan tenure finishes when the customer calculates how much interest he has paid then he finds out that he had paid double the amount of which he got the loan approved. If you want to settle the loan before instalments at that time the bank will also not facilitate you and further charge you with penalty charges for early settlements and one point more that if your reason of termination is not that much satisfactory then the bank will not get your loan settled early and because of this you will be strangled in this thing for the duration that you have got the loan. during the tenure of the loan the bank takes his interests in the first 2 years of your instalments and after 2 years when you go to terminate your loan your principal is outstanding is standing where it was at the start and the bank has recovered its interest in the first 2 years so this really pisses of the customer so home loan is a good option for persons who can manage there cashflows otherwise its a trap in which one you jump then you really have to pay a very heavy price.
Hammad Hassan
Anonymous Profile
Anonymous answered
The advantages are that you are being given the opportunity to pay for the use of someone else's money in order to buy (usually not to build) a home. The disadvantages are that you are paying for this privilege, sometimes more than you can afford. Buying is often not cheaper than renting, and it entails far more risk. If you can't pay your rent, you will be evicted and have to find a new place to live. But if you can't pay your mortgage payments, you will lose your house because the bank owns most of it (foreclosure) and you will probably have to declare bankruptcy (at least in the U.S.), making it difficult to get credit for several years. If you mean a home equity loan, the advantage is that you can use the equity (value) that you have built up in your home to renovate or improve it. If you use the funds for other purposes (vacation, car, child's education), then you are gambling that your house will have increased by that much when you want to sell it. Many people who use a home equity loan for purposes other than home improvement find that they still owe money on the loan after selling the house, because it did not increase in value as much as they gambled it would.
Jimmy Mathews Profile
Jimmy Mathews answered

If you have never received a loan to purchase something, you certainly are in the minority! Loans can be a great thing, but they can also get you into trouble. One of the keys to being financially successful is understanding when loans are a good solution for your situation. Loans are never a good idea if you can't afford to pay them back in the required time frame. 

Shreekant Rao Profile
Shreekant Rao answered

Create a Space of your own with Home Loan. Our loans are tailor made for salaried individuals at attractive rate of interest and longer tenure. We also provide you with legal and technical counselling to help you make the right home buying decision.

Anurag Mishra Profile
Anurag Mishra answered

There are various advantages and disadvantages of a home loans. A home loan is a secured loan, so, you will find more advantages than disadvantages.

Advantages of a Home Loans

  • A home loan makes home loan ownership affordable.
  • A mortgage is a cost-effective way of borrowing.
  • The rate of interest of a home loans is lower than any other loan.
  • It is easy to get as it is approved on behalf of collateral or asset.
  • You will get tax benefits on the principal and interest part of the loan, upto Rs. 2 lakhs.

Disadvantage of a Home Loans

  • You need to keep someone as guarantor.
  • You have to continue the loan for a long period of time.
  • If you become defaulter for more than 3 months, lenders may auction your collateral to get the money back.

Laura Schmid Profile
Laura Schmid answered

Before applying for a home loan, you have to check yourself first and ask if you really need it. It should be your last resort if you are in pressing need of financial assistance particularly if it involves purchasing a house.

It got pros and cons. But among the advantages you can get is you'll have a tax rebated on the interest you've paid. It also puts a lesser burden in terms of interest rate because it is lower compared to any other loans, even the ones borrowed from a moneylender. But the disadvantage is that you'll have a loan that goes one for many years since you have to keep earning money so you can repay both the interest and the principal component.

Naeem Talib Profile
Naeem Talib answered
There are a lot of advantages or benefits to captivating a land or homeowner loan. It is a comparatively little rate method to finance main buying or home developments, and the cash approaches with extremely a small number of limitations. A home credit is able to generally be procedure and stopped up extremely rapidly, and the fees linked by it are frequently a large amount less than by further sorts of loans. The majority of home loans are able to repay in excess of a longer phrase than an unprotected loan, and you contain the alternative of clearance it before time if your assets are enough.

For the reason that land or home owner loans are comparatively simple to get, it may be alluring to overspend by the cash you have a loan of. Keep in mind, it is not free cash and you are factually having a loan of from the worth of your house. It is most excellent to employ the cash for objects that are superior assets also in the home itself or in the prospect of your family unit. General instances of stuffs that are measured superior investments comprise home developments renewals, and a kid's tutoring.
Salman Zahid Profile
Salman Zahid answered
The main disadvantage is the interest rate. If there is no interest then it is best...but today each and every loan is with the interest. So it is not possible for a normal person to pay so much then the original money. Although it has many advantage.to make home is wish of every person so it help us to solve our problem....and to fulfill your wish.....ok
Anonymous Profile
Anonymous answered
The main disadvantages is interest rate.....as we hav to so much of interest that a normal man can't afford......but it gives you lots of advantages.....that can fill the place of disadvantage......
Glen Thornbury Profile
Glen Thornbury answered
The main disadvantage is the interest is charged repeatedly off the principle and at the end you are paying 100% or more!

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