Which one is better: floating or fixed rate home loan | By ResaleAdvisor

Which one is better: floating or fixed rate home loan | By ResaleAdvisor



When it comes to choosing between a floating or a fixed-rate home loan, it is important to consider your financial situation and what kind of risk you are willing to take. In the Indian market, home loans are available in both floating and fixed-rate options and thus, it is important to understand the advantages and disadvantages of both before making a decision.


A floating-rate home loan is a loan where the interest rate is linked to the Reserve Bank of India (RBI) repo rate. This means that the interest rate fluctuates with the market and is subject to change. The main advantage of a floating-rate home loan is that it is typically lower than a fixed-rate home loan. This makes it an attractive option for those who want to save money on interest payments. Additionally, if the repo rate falls, your floating-rate home loan will become cheaper as the interest rate will decrease.


However, there are also some risks associated with a floating-rate home loan. Since the interest rate is subject to change, you will never know how much your EMIs will be in the future. Thus, if the repo rate increases, your EMIs will also increase. This can be a financial burden, particularly for those who have a tight budget.


On the other hand, a fixed-rate home loan is a loan where the interest rate is fixed for a certain period of time. This means that even if the repo rate changes, the interest rate on your loan will remain the same. The main advantage of a fixed-rate home loan is that it provides financial stability as you will always know what your EMIs will be, regardless of any fluctuations in the market. Additionally, if the repo rate increases, you will not be affected as your interest rate will remain the same.

However, the downside to a fixed-rate home loan is that it tends to be more expensive than a floating-rate home loan. This is because lenders charge a premium for fixing the rate for a certain period of time. Thus, those who are budget-conscious may not find a fixed-rate home loan to be the most attractive option. 


Ultimately, the decision between a floating or fixed-rate home loan should be based on your individual financial situation. If you are looking for a loan with lower interest rates and are willing to take the risk of fluctuating EMIs, then a floating-rate home loan may be the best option for you. However, if you are looking for a loan with financial stability and are willing to pay a higher interest rate, then a fixed-rate home loan may be the better option.


If you are considering taking a home loan, then reach out to us by visiting our website  www.resaleadvisor.com . We can help you find the best home loan option to fit your individual needs. Contact us now and let us help you make the right decision for your future.

Comments

Post a Comment

Popular posts from this blog

IS IT WORTH BUYING A RESALE PROPERTY? | By ResaleAdvisor

Image
IS IT WORTH BUYING A RESALE PROPERTY ? | By ResaleAdvisor Nobody wants to live in a rented flat or house, everyone desires to buy their own house and property. But the major reason why they are not able to do it is because of the skyrocketing prices of real estate. Even though these days buying a property has become a little easier if you are opting for a home loan. And the home loan is actually a really good solution for that but still, there are some risks associated with it, and many people do not want to take it. And in such situations buying a resale property is the best option. If you want to buy your own house and enjoy the freedom and privacy of living in your own house, and that too without spending too much money in buying it. If you are thinking of buying a resale property   then visit ResaleAdvisor.com There are several benefits of buying a resale property that people should know, about and invest in R esale property :- What you see is what you get:- According to...
Read more

Factors to consider while making a token payment for a property | By ResaleAdvisor

Image
Factors to consider while making a token payment for a property | By ResaleAdvisor Pay attention, my friend, purchasing property is no laughing matter. There are a lot of considerations that must be taken into account. It is important to be financially responsible or seek the help of a trustworthy person to guide you through the process. If you are interested in purchasing a property in Delhi, or any other city, it is essential to have a thorough understanding of the legal process. For example, when booking a property, you will need to pay a token amount. For more information visit  www.resaleadvisor.com   Here are some things to keep in mind when making a token payment : 1. Keep evidence of the payment You must provide evidence that you have paid the token money. Without proof, it can be difficult to prove that payment has been made. Therefore, it is important to have a receipt or memorandum of understanding (MOU) to show that payment has been made. For more information visi...
Read more

Advantages of Working with a Real Estate Professional | By ResaleAdvisor

Image
Advantages of Working with a Real Estate Professional | By ResaleAdvisor   Are you looking to buy a new home or invest in a property? If so, you might be considering working with a real estate professional. Working with a real estate professional can offer many advantages, including expertise in the local market, access to the Multiple Listing Service (MLS), and an understanding of the latest market trends. At ResaleAdvisor , we understand the importance of working with a real estate professional , and the many benefits it can provide to buyers and sellers alike. What is a Real Estate Professional? A real estate professional is a licensed individual or team of individuals who specialize in the buying and selling of real estate. Real estate professionals are experienced and knowledgeable about local markets, current trends, and the buying/selling process. They are also well-versed in the legal aspects of buying and selling real estate, as well as negotiation strategies. ...
Read more