pl. tell me for home loan which interst rates are better fixed or floating for a tenure of 20years,pl tell me fast, and whcih bank is providing the home laon at 7.75% interest for 20 year
By making blanket statements like "Over such a long time frame, interest rates are bound to fall." you are doing a disservice to the people of this portal.
The general information you share about fixed and floating rate loans is decent enough. But to advice people to go for floating without warning them that their payments can increase significantly if inflation rears its ugly head and interest rates shoot up, is irresponsible on your part.
You don't have to go too further back than 15 years to a time when interest rates (just deposit rates) in India were 15%. It is a completely futile exercise to predict long-term interest rates which you have done and it's absolute folly to suggest that interest rates are bound to fall in the long-term.
I suggest when you write an article that you stick to your forte of providing all pertaining facts relating to the subject and not engage in macro-economic forecasting.
As Warren Buffet once said: "the cemetery for seers has a huge section set aside for macro forecasters."
Another consideration that one must take into account is the case of pre-payment. My understanding is that in case one wants to make pre-payment, Floating rate is a better option.
I think contarary to your opinion the fixed rate is better. When we were opting for our loan the difference between the two was of 0.25% only (Fixed was 7.75% while floating was 7.50%). We opted for fixed interest rate and are happy now as the floating rate is now up by 0.50% then our fixed rate.
I think contarary to your opinion the fixed rate is better. When we were opting for our loan the difference between the two was of 0.25% only (Fixed was 7.75% while floating was 7.50%). We opted for fixed interest rate and are happy now as the floating rate is now up by 0.50% then our fixed rate.
