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Things to know about Home loan interest rates on housing finance

Home loan interest rates are one of the most elements while determining the total cost of your home loan. It’s the monthly installment that you can afford to pay to the bank or finance companies at the time of repayment. A small change in the interest rates can make a big difference to your repayment and can hamper your financial situation badly. Interest rates depend on various factors like availability of money in the market (liquidity), inflation and monetary policies. They are categorized in two ways fixed rate or a floating rate. Under fixed rate loan the ROI remains constant throughout the loan period, while in floating rate loans the ROI is linked to market conditions and may change periodically. They could be linked to the base rate, inflation, or other parameters, each b... Read more

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