I and my wife both are working and having combined yearly income of 14 lakh per year. I am in the 20% income tax range and wife is in 10%.  We are having about 30 lakhs in bank deposit as FD of 3 year maturing of Apr 2016

We would like to invest in house property around 25 lakhs. Please suggest me which option is best among following

Option 1

Take of joint home loan and take benefit interest repayment in tax which is for both.

Option 2

Take a loan against FD and repay as quickly as possible by first depositing whole salary monthly into the loan account plus top ups from bonuses or extra income to reduce the interest burden.

Option 3

Not at all go for any loan, break the FDs and invest in property and be free from any liability.