People in requirement of home loans usually prefer floating interest rates. However, some borrowers opt for home loans with a fixed rate of interest. The fixed interest rate option suits those who are absolutely sure about their debt obligation. But the rate of interest, in this scenario, is a little bit higher than the floating interest rate. Nonetheless, EMIs remain fixed throughout the loan tenure. As a borrower, if you are looking for either a short term or midterm home loan, then a fixed rate of interest is just perfect for you.
The advantage of taking a home loan with a fixed interest rate option is that the borrower will remain free from the fluctuating rate of interest, which is higher usually. Thus the fixed rate option is transparent and the concerned borrower won’t have the loan burden issue. As a result, the savings could be allocated for some other purposes like higher education for children or
retirement funds.
As a borrower, do keep in mind that the debt obligations must not exceed the monthly household income. Otherwise, you would be in financial trouble. If you want to foreclose the fixed interest home loan, you can do so, but you need to pay additional penalties. Now the question is what would be the fixed rate of interest. It depends on parameters like:
● Monthly income
● Loan amount
● Loan tenure
● Credit score, etc.
For more information on home loan and a subsequent fixed rate of interest, contact our loan financing expert. You can also request a custom quote. If you have already decided to take a home loan, visit the website, and make your application. The online application is very
convenient and time-saving. Once you are done with the application, our experts will get in touch with you to discuss further regarding home loans and fixed rates of interest.