Hello Sir,
I have taken a home loan from HDFC. Now only 27 EMI are to be paid. My current rate of interest is 8.55%. Yesterday, I received an email from HDFC saying that I can opt for a fixed rate of interest for the remaining tenure. They have not given that fixed rate of interest in the email.
My question is that should I opt for the offer? Can you please suggest if it would be beneficial for me or not?
Thanks in advance for your advice.
- Satish
Ans: Satish, it's great that you're considering your options carefully when it comes to your home loan. Opting for a fixed interest rate can offer stability and predictability in your monthly payments, which can be comforting, especially as you near the end of your loan tenure.
However, before making a decision, it's important to weigh the pros and cons. Consider factors such as the current interest rate environment, your financial situation, and any potential future changes in interest rates. While a fixed rate can shield you from fluctuations in interest rates, it may also mean missing out on potential savings if interest rates decrease in the future.
As a Certified Financial Planner would advise, evaluate the terms of the fixed interest rate offer from HDFC, including the rate itself and any associated fees or conditions. Compare it with your current variable interest rate to determine if the switch would be beneficial for you in the long run. Remember, every financial decision is unique, so take your time to make an informed choice that aligns with your goals and circumstances.
