A modular home is more than a roof over one’s head and four walls that give shelter. It is not only a house constructed of pieces, but it is homemade of dreams and hopes. Everyone wishes to have their place. If you are planning to take a home, then you should opt for a home loan. Here are the reasons why you should opt for a modular home loan:
High Repayment Tenure
Among all types of home loans, it has the longest repayment tenure that goes up to 30 years, so you are tension-free and can extend your tenure as per your needs. You may use a modular home loan EMI calculator to understand how EMI changes as you change your home loan tenure.
With the right modular home loan lender, you are assured of complete transparency in the process of the loan and loan servicing. It includes documentation, the eligible loan amount, and all the charges involved. You are also assured that everything will be communicated effectively to you.
A Home Loan Aids in Enhancing Net Worth
Several Americans tend to invest in modular homes as the market has shown consistent growth over the years. With appreciation in modular home prices, it is a sure-shot route to grow your net worth.
A modular home loan is the best option to finance if you want to acquire one or more real estate properties for investment purposes. Even with paying the interest component across the complete repayment tenure, the capital is higher in the longer term. If you want to sell the modular home, the return on investment may result in higher profit.
A Home Loan Guarantees Property Safety
When you buy a modular home, it is necessary to ensure that the investment is free of any legal disputes. Also, for a borrower, running a check of magnitude is overwhelming. It is an added home loan benefit for self-employed people as availing this kind of finance triggers a complete background check on the builder’s credibility and property, too. The preferred lender undertakes the exercise on behalf of the borrower. The result is to ensure that the modular home is legal and the real estate developer has all the required certificates and documentation from the authorities. Once the modular home loan lender receives a report, the borrower is assured that the modular is free of any legal disputes, making it a safe and secure purchase.
A Better Credit Score
Regular paying monthly installments helps you to improve your CIBIL score and boosts your loan eligibility for a second modular home if you plan to buy one.
A Home Loan Supports Compounding Savings
Availing modular home loans and repaying them through affordable EMIs each month makes sure that your dream does not become a burden. Also, with longer repayment tenures, you may have leftover funds from your income. These amounts can be channeled towards financial instruments that provide higher returns. In the long term, it helps to compound your savings and aids you in wealth accumulation and creation.