Tips on choosing between fixed and variable interest rates





Most of us finance our new home with the help of home loans and therefore, it is vital to know about the interest rates and the differences among them. Here is a guide to help you decide a better repayment plan that does not clash with your monthly budget:

1.       Fixed Rate of Interest

Here, the interest rates will be fixed for the entire tenure of the home loan. This helps in planning repayment ahead as the amount to be paid per month will remain constant. An added advantage of fixed interest rate is that the RBI policy changes on interest rates will not affect the rates belonging to this loan type. The disadvantage of choosing this type is that it includes bank charges that are slightly higher that other loan types and also a drop in general interest rates due to various policies does not let us obtain its benefits as the interest rates remain fixed.

2.       Variable Rate of Interest

Variable rate of interest or floating interest rate are those which would fluctuate as per RBI policies throughout the loan tenure. Banks mostly fix a rate that is slightly lower ad if RBI policies influence the drops in interest rate, the interest amount to be paid will also go down. The disadvantage of choosing this type is that it does not let you plan ahead for paying interest and also, a sudden hike in rates will put an extensive financial pressure on the monthly budget.


Buy best flats and apartments in Kochi from leading builders in Kochi-  Melonwood Homes. We offers both premium and Luxury apartments & flats in Kochi. We have currently 3 ready to occupy flats in Kochi at Edappally, Vazhakkala etc.Visit our website for more http://www.melonwoodhomes.com
Location: Bristow Rd, Willingdon Island, Kochi, Kerala 682004, India

Comments

Post a Comment

Popular posts from this blog

Make the most out of real estate investment easily

Image
Real estate investment in residential properties assure effective returns and it is highly regarded as a wealth maximizing opportunity. For a successful investment flats, apartments and residential projects, it is vital to consider certain parameters like connectivity, proximity to social infrastructure, etc. Here are a few guidelines to help make the most out of real estate investment: 1.    Learn more about the property cycle to identify the entry point in real estate sector correctly. 2.    Understand in depth about the government issues leasehold titles. 3.    Ensure the quality of development to assure that you gain healthy returns and also to refrain from bad investment options laid forward by depressed market. 4.    An investor must be aware of the gain in capital and stamp duty amount to be paid. 5.    Verify development plans and statutory approvals and do a close scrutiny throughout the investmen...
Read more

4 Things that a Nuclear Family Should Consider During Home Search

Image
In India, We are breakdown of joint families into small, nuclear families, the priorities of a modern homebuyers have seen a dramatic change. Instead of size and number of rooms, the neighbourhood, social infrastructure and facilities offered in a project have now become top considerations. As against a joint family, the requirements of a nuclear family are much different when it comes to property purchase. To begin with, a nuclear family, which comprises of a husband, wife and children, requires lesser space than the joint family setup. Nuclear families do not need nearly as much space as a joint family. The criteria for the choice of a property in a nuclear family are radically different from those of a joint family. Here are five things that make a big impression with today’s homebuyer. 1. Security   In the case of a nuclear family, parents leave home early for work and return in the evening, leaving their children and the elderly behind. Security, therefo...
Read more

Reasons that make Edappally a prime location in Kochi

Image
Edappally is one of the fastest growing suburb on Kochi which is also considered as the entrance to the city of Kochi. Due to its strategic position at the intersection of highways and being an emerging retail centre, the area is considered a prime location for investment in Kochi. Here are the reasons that make Edappally a valuable destination for investment in Kochi.   Junction of highways – The 2 national highways join the Kochi bypass at Edappally.   Kochi Metro – The Kochi Metro station makes the area a prime location by making it accessible from various locations in the city.   Shopping hub – The most happening places in the city like Oberon mall LuLu mall are located at Edappally.   Close proximity to educational institutions – Amrita Institute of Medical Sciences, Amrita School of Arts and Sciences, Government Vocational and Higher Secondary School, Bhavans Elamakkara, etc. are at nearest location from Edappally. Me...
Read more