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POSTED BY ON December 27, 2014 2:08 pm COMMENTS (3)
I had a Home Loan (floating rate) of Rs. 10 lacs. Starting Interest rate @ 10.15 % then presently Interest rate is @ 10.50 % next reset date is March 2015.
They give me option of transfer from 10.50 % to 10.15 % with conversion charges of approx Rs. 2,800/-. Now what to do, I don’t understand that shall I go with conversion or wait for next reset date ?
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Hi, I’m planning to take a Home loan from HDFC Ltd and presently they are quoting 9.85% Interest rate.
My query is that in future if the rates increase to say 10.50% and further to 11.00%, my loan interest rate would automatically increase. But if these rates again take a recourse to say 10.25% and further to 9.90% in future, will I have to pay HDFC Ltd processing fees @ 0.5% to bring my Interest rates down to rates at which my loan originally started??
Please provide valuable input. Thanks in advance.
Please check with your bank, whether they will increase the base rate of your loan interest part?
Ex: Now you may be paying 10% base rate + 0.5% as floating – Means any given time 10% will be your minimum interest rate.
after paying conversion charges, this may changed as 10.10% as base rate + 0.05% as floating – Means any given time 10.10% will be your minimum interest rate.
Hope you understand what I said.
Its always a good idea (well, most of the times) to pay a onetime fees and move to a lower interest rate . Check with the customer care, how much EMI you will benefit from ..