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- Administrative/processing fees: Most banks charge processing or administrative fees, either separately or include them in the loan amount.
- Prepayment charges: These are the main charges consumers should take into account while selecting a bank. Banks charge a penalty for part or full prepayment but they may reduce or waive these charges for business reasons. Also, the prepayment made after the required minimum loan period is over does not attract any charges. This is an option that should be thoroughly studied and compared by the consumers when opting for a home loan. In case the borrower is transferring the loan to another lender he/she will need to pay the full prepayment charges.
- Technical or valuation charges: These fees are payable to the lender or to the technical consultants of the lender.
- Legal fees: These fees are payable to the lender or to the legal consultants of the lender.
- Stamp duty on creation of mortgage: Some banks charge this fee while others normally just have a clause that requires this fee to be paid in the event the state government actually charges this amount. A consumer should not eliminate a lender just because he/she is paying this stamp duty to the government.
Published on May 5, 2010 · Filed under: Home Loan FAQs; Tagged as: Home loan, home loan guide, Home loan rate of interest
What are the charges other than interest rates that are levied by Home loan lenders
May 5th, 2010 by rupeetalk.com
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