Must Know Facts Before Taking a Home Loan
Bangalore: Home loans have become much cheaper eventually because of the RBI’s downward revision of policy rates by 50 basis points. This notion has started to nudge home seekers to go for more home loans, reports Preeti Kulkalni of ET Bureau. This cheaper home loans tactic goes for the existing home loan borrowers as well. They should review their policy and modify it, if necessary. Here are few factors you need to know before taking a fresh home loan or evaluating your existing loan structure:
1. Fixed or floating?
Though many banks have discontinued the practice of providing home loans with fixed rates, there are still some of them who provide such loans. There are many loans seekers as well who want to go for such loans with fixed rates to avoid the stress involved. Presently the interest rates are in a back seat, so it’s best to opt for floating rate loans. Apart from this, the differential between the floating and fixed rates in 2 percentage points, which primarily depends upon the lender. Thus it is best to choose the former.
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