Which is Preferable, a Fixed or Floating Interest Rate on a House Loan Choosing between a fixed vs floating interest rate is a crucial decision when securing a home loan, as it affects your monthly payments, overall cost, and financial flexibility. A fixed interest rate offers stability with predictable EMIs and protection against market fluctuations, making it ideal for borrowers seeking budgeting certainty, especially for short to medium loan tenures. However, fixed rates are generally higher initially and may include prepayment penalties. Conversely, a floating interest rate varies with market benchmarks, often starting lower and allowing EMI reductions if rates fall, with greater prepayment flexibility but exposure to increasing payments if rates rise. This option suits borrowers comfortable with some risk and long-term loans. To know more - https://medium.com/@mortgagerio12/when-it-comes-to-securing-a-home-loan-one-of-the-most-significant-decisions-borrowers-face-is-424a4e6e1ccf