Bank equity home loan rate
One need to be very careful while he is buying Home, now days the real estate sector is on the all time high and for everyone the cost of living has become very expensive. In this situation the buying a house for middle class people would be just a dream. So in order to provide them with necessary finance many institutions have come forward to provide them with Loan. Of course one who is taking the Loan has to pay interest on it
Concept of Home Equity:-
The concept of Home Equity is very popular in middle class people. Home Equity is the concept in which the cost price of the house and the amount of Loan taken is compared and the difference is known as the Home Equity The Rates of Home Equity are low that is one can afford the Loan against the Home. In a Home Equity one borrows the Loan which is equal to the cost of the house or less than the cost of house that is one self finance by himself but one should see that he should not borrow than required amount because he will not be able to use the Loan amount optimally and have to pay unnecessarily higher Rate of interest.
There are many benefits which one can avail from the Bank Equity Home Loan, which would include the Bank which is providing Loan is regarded as safest and if its government Bank than one need not worry about fraud or any other type of cases The interest Rate s at which government Bank s provide Loan is also very low, the interest which is paid on the Loan given by Bank s is tax deductible, here Loan provided by Bank s can be use for any purpose and thus it is regarded as new source of capital which may be used for any purpose like buying a new car, Home etc.
Uses of Home Equity Loan:-
The Equity Home Loan which is granted by the Bank can be used for various purposes which would include Home improvement, debt consolidation which means if a person has taken a Loan from various institutions than he can take Loan from Bank and can consolidate the various loans into one, one can also use the Loan for emergencies arising which would include paying off the medicine bills, estate taxes of any other emergencies arising, the Loan taken can also be use for education purpose that paying off the fees of the children etc. One can also use the Loan for purchasing the car.
Home Equity Loan provide by Bank is also very useful as one can save by paying less interest as compared to any other financial institution. Interest Rate s on Home Equity may be fixed or variable, in fixed interest Rate s one need to pay the interest every month while in variable one has to pay interest but Rate s are fluctuating. Thus Loan provided by Bank for purchasing house is very useful to poor and middle class people.