Home Loans

Home loans not only helps a person realize his/her dream of owning a dream residential property, but also provides many tax advantages for individual tax payers.

 

Applying for a bank loan is the first step, a prospective homeowner takes towards acquiring his dream home. For that, it’s essential that one takes the required guidance of an expert professional well-versed in home loans to ensure that they choose the right home loan. It’s here that Karni Estates provides you an insight into how home loans are obtained and dealt with.

 

A Home Loan can be a fixed rate home loan or a floating rate loan. In a fixed home loan, the repayment of home loans is done in fixed equal installments over the entire period of the loan. The interest rate doesn’t change with market fluctuations. A fixed-rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn’t fluctuate.

 

On the other hand, in a floating rate loan, the interest rate on the loan depends on a benchmark rate fixed by the home loan lender. This benchmark rate varies as per the market and the change can happen as frequently as once in three or six months. Home loans on floating interest rates are tied to a base rate plus a floating element thereof. So, if the base rate varies the floating interest rate also varies.

 

You must choose a floating rate loan, if you are anticipating the interest rates to decrease in the future. However, even within the categories of floating and fixed rate loans there are terms which differentiate one loan from another. So it’s advisable to consult a professional expert who can guide you on the right home loan that suits your specific requirements.