Home Loan: Let's Have A Look On Hidden Costs
Posted on Jan 7 2013 at 11:23:16 PM in Finance & Investment
Home loan proves to be a great helping for all those who want to get some quick cash for meeting their varied needs. You can come across to varied loan options in the market like DHFL home loan, SBI home loan, Corporation Bank home loan, HDFC home loan, HSBC Bank home loan, etc. Apart from interest rates, there are varied other fees/charges also which are associated with home loan. It becomes important to carefully understand the fees structure which clearly make up the total loan cost. Every lender has its own charges, which you should compare before availing the loan. Let's have a look on some of those-
Processing fee- All lenders charge processing fee which can be 0.25 per cent of the total loan amount. In most of the cases, there is an option of refund of fees if the loan is sanctioned, however no refund will be made if the loan application got rejected.
Conversion charges- If the borrower will change home loan from fixed rate to floating rate (or vice versa) then conversion charges are imposed on the lender.
Verification charges- These are paid to the lender for doing technical verification of the property.
Legal fee- It is paid to the lender.
Stamp duty- On creating mortgage, there are some lenders who charge this fee whilst there are other banks which normally contain a clause that needs this to be paid in the event the state government actually charges the amount.
Relared - Things To Know Before Securing A Home Loan