After repaying my home loan for almost 7 years out of the total tenure of 12 years, I had surplus funds. I wanted to get the loan off my head as soon as possible. So I talked to my financial advisor and went to the bank to understand what would be the process for the same. I remember they said that they will levy home loan foreclosure charges. I wasn’t sure what it meant. But then explained the charges to me and said that I should explore the possibilities of how much I would save overall in terms of interest. Anyway, I can tell you a thing or two about loan foreclosure charges. So allow me to enlighten you with my answer.Need help calculating EMI for home loan? Check out NoBroker EMI calculatorForeclosure charges meaningSo as the name suggests, foreclosure means closing earlier than the decided timeline. When we talk about foreclosure charges, it means that the bank will levy a fee to foreclose your home loan. When you pay a lump sum amount to close your home loan, these charges will be laid. Get best deals on home loans by top banks. Seek NoBroker Home Loan services todayThings to consider before choosing foreclosure of home loanYou must have known by now what is foreclosure charges. Let me tell you about all the things I had to consider before arriving at a decision to pay home loan foreclosure charges.
My bank manager informed me about foreclosure when I was paying off my house loan. In simple language, he said to me that when people gather enough cash to pay back the entire amount of the loan balance in full without incurring additional EMIs, it is known as "foreclosure charges for home loan."
What is the Housing Loan Foreclosure Charges?
The charges associated with home loan foreclosure are dependent on whether the borrower uses their own money or funds from another source to repay the loan. Since different lenders are offering attractive interest rates, some borrowers might think about refinancing. My bank manager informed me how it functions:
The borrower's preferred lender will approve the loan.
After that, the lender will close the house loan by giving the existing lender back the loan balance.
At the new interest rate, the borrower is required to pay back the loan to the new lender.
Post
Question
What is Foreclosure Charges?
Garvit
✔In Progress
👁653
Views
March 4, 2022
2022-03-04T12:54:55+00:00 2024-01-23T21:40:45+00:00Comment
2
Answers
Banking
Share