Home Loans

Owning a home, is every person's dream come true. But the ever escalating property price and sky rocketing interest rates act as a great hindrance to all. Even if one decides to buy a home through home loan finance, the very prospect of meeting several home loan providers to check out their current home loan rates before reaching a final decision, scares the wits out off the buyers mind.

Types Of Home Loans

Depending on the interest rate regime offered by various banks , you can choose the one which best suits your tastes and preferences.

Fixed interest rate loans

Under this type of home loan, bank charges the same amount of interest rate throughout the tenure of loan. However, the disadvantage is that the borrower is subject to market risk. Generally fixed interest rate loans are costlier than floating interest rate loans. Availing this type of loan facility is beneficial only when there is expectation that the interest rates will have an upward revision in the near future.

Floating interest rates

Home loans are subject to market conditions and hence they are constantly revised by the banks. These loans are generally called as adjustable rate home loans as the interest rates vary throughout the entire tenure. Floating rates are beneficial only if the interest rates falls in the future.

Documentation