{"id":22440,"date":"2013-08-07T19:01:58","date_gmt":"2013-08-07T13:31:58","guid":{"rendered":"http:\/\/www.bharatestates.com\/blog\/?p=22440"},"modified":"2020-06-15T03:49:12","modified_gmt":"2020-06-14T22:19:12","slug":"floating-or-fixed-rate-loans","status":"publish","type":"post","link":"https:\/\/www.bharatestates.com\/blog\/floating-or-fixed-rate-loans\/","title":{"rendered":"Floating or fixed rate loans?"},"content":{"rendered":"

\"Fixed-or-floating\"Unless you have heaps of money, you will have to take a home loan if you are hoping to buy a house<\/a> in the present property market situation. A home loan is honestly a headache. But the desire to own a house is so great that most people are willing to go through any amount of headache for it. One of the questions that one might face while opting for a home loan is whether to take a fixed interest rate loan or a floating interest rate loan.A fixed rate loan is when the rate of interest on the loan remains fixed throughout the time of the loan repayment. A floating rate loan is when the interest rate keeps changing with fluctuation of interest rates in the market. The interest rates depend on a lot of factors like liquidity (money in the market), monetary policies of the government, inflation etc. Floating rate loans are affected by these factors and the monthly installments can show sharp fluctuations in keeping with the market. On the other hand fixed rate loan remains fixed throughout the tenure of the loan though it can be revised and hiked as per the bank’s policies. This means even when the market is high on liquidity the rate of interest will be slightly higher.To make the choice between whether to go for a fixed rate loan or a floating rate loan is tough call. A simple statement of the advantages and disadvantages of both might help in the decision.Advantages of fixed rate loans<\/strong>:<\/p>\n