123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Should You Choose Fixed Or Floating Housing Loan Interest Rates?

By Author: Aishwarya Mahurkar
Total Articles: 291

Selection of home loan interest rates is the toughest part of home loan products. If you understand your current and future financial situation, most borrowers can choose it. But, the riskiest part is to anticipate your future earnings and cash flow well enough. It a challenge to anticipate all factors well for the financial experts too. Therefore, it is far more sensible to consider fixed and floating home loan rates. Then, make the decision.


Fixed:


When you consider fixed housing loan interest rates, there is a single advantage. These home loan rates will remain consistent for a foreseeable future, in most cases, three to five years. So, if you can afford a bit higher home loan interest rates, you can choose it. But, there are few disadvantages too. You will have to pay higher home loan rates in India. Additionally, you will have to pay prepayment charges with the prepayments. So, it makes sense to consider floating rates if you have any kind of budget constraints.


Floating:


This is the lower housing loan interest rate. It is the popular choice in India today for a reason. You can use the gap between fixed and floating rates for shorter home loan tenure or a larger property. In addition, you can prepay the loan at 0% charges and clear your home loan in a lesser amount of interest. However, there is no alternative to facing the sudden burst in home loan rates of India. You will need to remain ready for them at any point of time. It is especially challenging during a period of financial or medical emergency.


Hybrid:


This is the least considered option. When you have to choose a type of housing loan interest rate, this is the latest and least popular choice. There are two main reasons for the same. Firstly, it is a complex home loan rate in India. Secondly, you need to maintain two different tracks of two different rates. It also gets more time-consuming. At the end of the day, fixed and floating home loan rates seem far simpler and more appealing.


So, you can choose fixed home loan interest rate if you can afford it. Alternatively, you can go with the popular type. It will not be easier to repay if you cannot be shock-proof to any increase in the housing loan interest rates. Thus, it will depend on your financial capacity and mental readiness to adjust to these fluctuations. Choose the one that suits you well.

Author Bio :

The author is a seasonal writer on topics of finance and the home loan sector. Through her writing, she articulates aspects that are important to people availing facility such as home loan interest rates, documents, eligibility criteria that help to make the best decision.

Total Views: 65Word Count: 456See All articles From Author

Investing / Finance Articles

1. 5 Hacks To Getting Loan Against Property Approved
Author: Atish Nayar

2. How A Claims Adviser Helps With Insurance Claims
Author: Edmund Brunetti

3. Avoid These Mistakes While Hiring A Cpa Firm
Author: Hampry Gomes

4. Top Tips For Mcx Commodity Trading
Author: Riya Jain

5. How To Claim Unclaimed Fixed Deposits From Banks
Author: Arwind Sharma

6. 12 Month Payday Loans Direct Lenders
Author: Carol Adams

7. Where To Look For Ongoing Projects In Mumbai In 2017?
Author: Mira

8. Benefits Of Hiring A Tax Accountant
Author: Karen Lee

9. Impact Of Gst On Manufacturers And Their Distribution Networks
Author: Rahul Sutraj

10. Quickly Find Ideal Program For Commercial Lending In Atlanta
Author: John Bairstow

11. Why Emv Credit Card Terminals Are Necessary For Business?
Author: Satya Nadella

12. Get Set For A Great Retirement Life
Author: Deepesh Reddy

13. Payday Loan In India, Payday Loan India, Payday Loans India
Author: Mayank Aswal

14. Mashreqpay Program To Ease Your Personal & Business Life
Author: Jeff Usman

15. Maximize Your Profitability With Trade12 Trading Services
Author: Trade12

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: