current home loans

Tips-1  Floating Home Loan Rates :  

So even though composition of the base rate from the customer's perspective might continue to remain opaque still it is a better situation than the erstwhile BPLR since the regulator will ensure calculation of Base rate is done in a consistent and fair manner.[......]

current home loans

Tips-1  Current Floating Home Loan Rates :

cute independent

Floating Home Loan rates (also called variable rate loans or adjustable rate loans) - For Banks : The effective rate is linked to the Bank's Base Rate. The base rate would have to be declared by the banks at least once every quarter. It is open to each bank to decide its own methodology for fixing the base rate but it is not allowed to change the methodology after selecting one methodology. The banks will have to document how it has arrived at the base rate and follow the same system consistently. The calculation of the base rate will be open to the RBI for review (which should at least ensure that a set system is actually followed while calculating the Base Rate). This is of course a much better stipulation than  the earlier system of BPLR, where no such system was required to be documented by the bank and there was no question of any calculation that could be reviewed by RBI.

current home loans

Tips-2  Current Home Loan Interest Rates :  

Reset table Fixed Rates:  
Most of the so called Fixed Rates available 
in the market are of this variety. Here the interest rate is fixed for a period of 2-5 years and is then reset for a further period of 2-5 years and so on. These rates are more reasonable than the true fixed rates dealt with above. You just need to be clear about the nature of fixed rate contract you are getting into.

current home loans

Tips-1 to Curent Home Loan Interest Rates :  

Fixed Loans: In true Fixed Rate Home Loans the rates remain fixed throughout the tenure of the loan no matter what. These kind of rates are very expensive (13.50%+ for a 20 year home loan in November 2010) and are offered by a limited number of lenders in the market.

current home loans

Guide to Current Home Loan Interest Rates :  

There are 2 kinds of lenders. Banks (State Bank of India, ICICI Bank, Axis Bank, etc.) and Housing Finance Companies or HFCs (HDFC, LIC Housing Finance, ICICI Home Finance Ltd. , Dewain Housing Finance, GUSH, etc) Between them there are many kinds of Home Loan rates.