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ed interest rate, is a classic dilemma that has perplexed home loan seekers for ages.
Why Go For Fixed Rate ?
i. Interest Rate remains fixed irrespective of Market Conditions.
ii. A fixed rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn't fluctuate.
iii. It brings a sense of Certainty and Security.
Why Go For Floating Rate?
i. The biggest benefit with floating rate home loans is that they are at least 1%-2% cheaper than fixed interest rates. So, if you are getting a floating interest rate of 11.5% while, the fixed loan is being offered at 14%, you still save money if the floating interest rate rises by up to 2.5%.
ii. Even if the floating rate goes over the fixed rate, it will be for some period of the loan not for the entire tenure. The interest rates will surely fall over a long period and thus floating interest rate brings a lot of savings.
Why Go For Fixed Rate ?
i. Interest Rate remains fixed irrespective of Market Conditions.
ii. A fixed rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn't fluctuate.
iii. It brings a sense of Certainty and Security.
Why Go For Floating Rate?
i. The biggest benefit with floating rate home loans is that they are at least 1%-2% cheaper than fixed interest rates. So, if you are getting a floating interest rate of 11.5% while, the fixed loan is being offered at 14%, you still save money if the floating interest rate rises by up to 2.5%.
ii. Even if the floating rate goes over the fixed rate, it will be for some period of the loan not for the entire tenure. The interest rates will surely fall over a long period and thus floating interest rate brings a lot of savings.
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