Hello guys,
From 1st april,2012 onwards, my home loan has moved to floating rate scheme from earlier fixed rate. Interest rate has changed from 9% to 11.75%. Pl. give me some pointers in deciding my immediate course of action. Should I reduce spread by paying a conversion fee or move to different HFC/Bank ? If moving out is a good idea, then which HFC/bank is the best bet ? My loan details are as given below. Pl. note that the loan has not been disbursed completely (will be done by July,2012). I am currently paying Part EMI.
toal loan amount: 21,00000
tenure: 18 years
loan start date: July,2010
total disbursed amount from bank till now: 18,36,000 (construction linked)
total principal amount paid till now: 3,93,000 (part EMI+ prepayment)
RoI: 11.75% (floating from 01-APRIL-2012, 9% fixed before that)
regards,
Pundarik