I have taken a home loan with current outstanding balance of around 16.5 Lacs. The bank is charging 13.75% interest rate.
Today I went to the branch and discussed various options to bring down the rate. Here are the options I was given:
For an amount of 9000 approx. (.5%) I can
#1 Get a 10.5 % floating rate
#2 10.75% fixed rate for 2 years
#3 10.75% fixed rate for 3 years
For fixed rate if I do a pre payment in between then I will be charged around 2% on the EMI given during the period.
#4 I asked her what are the charges if pre pay and switch to other bank as new loan since the new loans at available at around 10%. She said there would be no charges from their side but other bank will charge processing fees etc. and the hassles. She said for the .5% difference it would not be worth it.
Any clear winner among these 4 options?
Also I am planning to request to increase my loan tenure. Currently it is 176 months(around 15 years). If I have to carry on with current loan then when shall I ask for this? right now or after the rescheduling of interest rate?