Ans. During the a predetermined rates home loan, the interest rate appropriate during the time of financing disbursal remains exact same on loan period. Since the interest rates will still be a comparable on the loan period, you’re shielded from rates of interest increases inside the loan tenure. But not, any time within the financing tenure, when your lending pricing slip, the newest fixed rates will continue to be unchanged, giving you zero benefit of the low EMIs.
In the event of floating price mortgage brokers, the attention rates try susceptible to transform as per the changes on the connected benchmark pricing used by the lenders. Drifting interest rate home loans are cheaper than the fresh fixed interest rate mortgage brokers and the RBI mandates no prepayment or property foreclosure prices for someone borrowing from the bank a floating rate financial.
Ans. Sure, you might prepay your residence mortgage. For those who have drifting rate home loans, zero prepayment costs is levied. Yet not, if there is fixed price mortgage brokers, lenders you will levy doing 2% so loan places Millry you can four% of prepayment charges.
Ans. Sure. The fresh cost away from prominent count would qualify for taxation write-offs lower than Part 80C of cash Tax Act. (more…)