Tips to keep in mind while taking a home loan

tips keep mind taking home loan
When you take a home loan, then you have to go to the bank floating rate (variable interest rate) or Fixed rates (fixed interest) have a choice between. As the name implies, home loans at fixed interest rate never change during the period. The floating rate varies with changes in interest rates by the central bank.
A person takes a 10 percent fixed interest home loan from the bank, if the EMI (EMI) of Rs 10,500 per month, that person during the entire period the Bank will continue to pay Rs 10,500 per month, while the loan-to is not finished.

tips keep mind taking home loan

What is the floating interest rate will taking home loan


Floating other hand, interest rates are on the same principle does not work. The interest rate varies according to market conditions. The impact that the monthly installment to the bank does. It continues up and down the EMI, a major loan interest rates are determined by the maximum time. The interest rate on the loan rate is more or less keeps fluctuating. The floating home loan interest rate is determined by the market.


how to know floating rates more or less while taking home loan?


Floating interest rates more or less to be the largest and the main reason depends on the policy of the central bank. RBI believes that inflation is on the rise, will increase in the repo rate, the repo rate is the interest rate at which the RBI lends money to banks. If the central bank increases the repo rate is the cost of money for banks. Because of which the bank interest rate increase to its customers.


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Not always, but most of the time there is this type of situation. On the other hand, to promote economic development is the decision to reduce interest rates. When this happens, the floating interest rate on the home loan is converted.

Once again we want to tell you this is more or less floating interest rates is not the only factor. It also depends on banks that RBI repo rate changes on changes in interest rates or not.


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When you take a home loan, you have a choice between taking a floating interest or a fixed interest home loan.

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