2006-07-14 11:35:09 · 5 answers · asked by ash7891 1 in Business & Finance ➔ Other - Business & Finance
Fixed. Finance your house for 15 years on a fixed rate. Shop the rate, though.
2006-07-14 11:38:18 · answer #1 · answered by desotobrave 6 · 1⤊ 0⤋
For the Indian market is concerned at this point fixed rate is still good. As the economy is growing at a reasonably fast clip, RBI is not expected to lower interest rates to keep away the inflation. Before the end of this year the interest rates are expected to rise by 0.50-0.75% and another 0.50% next year. These rates are not expected to come down at least for the next few years.
If unexpectedly the interest rates crash, you can look for refinance options and switch over to floating rates. But right now go for fixed rate.
Good luck.
2006-07-14 15:12:29 · answer #2 · answered by glib 3 · 0⤊ 0⤋
A fixed rate is definitely better. The prime rate (which is what the variable is based off) is consistently going up lately & shows no signs of going down anytime soon, which means the interest on your loan will constantly be going up & it will take you a lot longer to pay off your loan. Be sure you shop around & make sure you are getting the lowest rate possible. Check your credit to make sure nothing is reporting that shouldn't be. Also, if you know your credit score going in, it will make it a little easier to get what you want (if the score is good).
2006-07-14 11:44:13 · answer #3 · answered by melonamc 3 · 0⤊ 0⤋
It depends on what the rates are when you buy, adn how long you plan on staying in the home. If they are low when you buy then lock them in. If you think there is a chance they will go down (depending on the economy and prime) and are not planning on keeping it for many years then a variable rate works nicely, expecially for investment homes.
2006-07-14 11:39:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Fixed 15 or 30!!!!
2006-07-14 11:39:27 · answer #5 · answered by ryan s 1 · 0⤊ 0⤋