What are the different housing loan interest rates?

Posted by Anurag Mishra on July 7th, 2017

We all know that the interest rate plays a deciding role when an individual takes a home loan from of any of the institutes. But again how to find the best house loan interest rate is the question. The answer is quite simple: an individual whenever decides to take a new home or any property firstly Google about the various banking and the non-banking financial institutions in the market. He can also check out on the comparison websites and have a word with the lender to understand the concept of the home loan interest rate.

House loan interest rate does play an important role in how much an individual can save, but the borrowers should also keep in mind the other factors that could influence your finances and the overall experience. Features of the loan, the EMIs he need to pay regularly, customer services record of the lender, process of the home loan.  These all options should also be taken into consideration when looking for the different home loan options.

Here’s a quick guide when an individual is looking for different house loan interest rates:

Floating interest rate:

When an individual is looking for the floating interest rate he should be aware that all rates applicable on the loan will not be advertised online, so he needs to find out exactly what he is qualifying for. Though the banks and the financial institutions advertise some standard floating interest rate there are various package discounts given on the housing loan interest rates. These discounts depend on the variety of factors like the loan amount, the negotiation skills of the individual

Create a list of the lenders which offer you housing loans at various floating interest rate and start asking questions to the customer care executive. Don’t forget to ask about the features and the processing fees as they are also the deciding factors when an individual takes up the home loan.

Fixed interest rate:

If an individual wants to opt for the stability in the repayment of the home loan, a fixed rate may be appropriate. But here are some factors that need to be considered.

The individual should know the restrictions that are attached to the fixed interest rate. During the fixed interest rate an individual is not allowed to do any pre-payment from by some of the major lenders if the individual tries to do so he will be charged a break fee.

Whenever an individual is doing any research on the interest rate he should make comparisons of the various house loan interest rate on the online comparing sites and the speak to various lenders about the fixed rate options.

It is always better if an individual compares the different house loan interest rates he gets an idea about the different housing loan interest rate that given by the various lenders. Also in this way he can avail for a home loan which offers flexibility in the interest rate and in the repayment tenure.