No matter if you are looking to buy your first home or looking to move into a bigger home, availing home loan could be your best deal to meet your financial needs. The financial organizations that lend home loan charge a certain percentage of interest on the amount funded. If you are a first time home loan borrower, it may be difficult to decipher the significance of different types of interest rates. The types and significance of different kinds of home loan interest are discussed below.
Home interest rates are broadly classified into two types, namely fixed interest rate and adjustable/variable home loan.
1. Adjustable interest rate:
This type of home loan interest is also known as variable interest. When you avail home loan, the interest is usually fixed for a certain period then in the long run you may have to repay the monthly installment as per the prevailing interest rate in the market. A major benefit of opting for adjustable rate home loan is that the interest rate during the initial period is much lower as compared to fixed rate home loan.
If you are looking to avail home loan, it is best advised that you do your research well and apply for loan at a time when the interest rate is low. Lending institutions, like Indiabulls Housing Finance Ltd offer attractive schemes. You can contact the Indiabulls executives to know about the interest rates.
2. Fixed Rate of Interest:
Majority of the people who avail home loan opt for fixed interest rate loan since the interest amount is fixed for the full tenure of the loan. Fixed-rate home are further classified into 2 types in accordance to the loan tenure.
- 15 year home loan
This type of loan is ideal for people who have a decent income and wish to repay their loan within a shorter period. The interest amount for this kind of fixed rate home loan is considerably lower than the 30 year old home loan.
- 30 year home loan
This type of fixed rate home loan gives you the opportunity to avail home loan for a longer duration. People usually consider this type of loan more affordable as the monthly installment is lower than the 15 year loan. The lower monthly installment makes it easier for you to repay the loan.
While Indiabulls Housing Finance Ltd does not offer home loans at fixed interest rate, you can find a wide range of home loan offers to buy your dream home. With Indiabulls you can be sure to get personalized loan to suit your needs.
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