There are two types of home loan interest rates available in the market- one is fixed
interest rates and the other is floating interest rates. In the fixed home loan interest rates, as the name
itself suggest that the rate of interest will be fixed during the period of the
loan and so you will have to pay the same amount of interest throughout. These home loan interest rates remain fixed
regardless of how the market fluctuates.
The benefit of such home loan interest rates is that as it doesn’t depend on the market
trends and hence, when the interest rates goes higher in the market you won’t
feel the pressure of the market as your home
loan interest rates are fixed. These types of interest rates bring out the obvious
and certainty into the loan repayment and hence fixed rate is ideal for those
who like to plan their finances strictly. While applying for a home loan the
wise thing to do is to scrutinize the market trends and predict the home loan interest rates. So if you
have floating home loan interest rates at
the rate of lesser percentage while the fixed interest rate is at higher
percentage, you get to save money till the floating rate reaches that level.
If you are in view of purchasing a home
then it is also obvious that you would be taking home loan for it. As everybody
knows that repaying of the home loan takes several years so it is very
obligatory that you do a research to know your options and evaluate the
advantages and disadvantages of the loan that you are going to take. And also,
even if the floating home loan interest
rates go higher it won’t remain high for the entire loan period. The rate
of interest will surely fall off over the long tenure of the loan and therefore
bringing a lot of savings when compared to fixed rates.
Summary: One of the biggest benefits of
floating home loan interest rates is
that they are economical than the fixed interest rates.
7 comments:
Interesting a and useful topic about home loan interest rates.
Hi, your blog about Home Loan interest rate is really very nice. Most people are really getting very confused about the home loan interest rate which is provided by the leading banks of India but your blog is definitely helping them out.
The blog has chosen the most vital topic, related to home loan, to discuss. I agree to the fact that it is better to choose floating interest rates. For example, RBI has recently reduced the report rate, which led to the reduction of base rate in all the banks and NBFCs like Bajaj Finserv. This in turn, will help to charge a lower interest rate to those having floating interest rates than those having fixed interest rate.
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Nice and very interesting blog on home loan interest rates, Now a days people are mostly preferring own house rather to stay as a tenet in some ones home. So this made a hike in home loan applicants that intern made banks and other financial consultants offer home loans at lowest interest rates.
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