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Positive Points of Fixed Interest Rate on Home loan
1- Interest Rate remains fixed irrespective of Market Conditions even if Govt. lower the rates.
2- A fixed rate home loan doesn't fluctuate, so rates are certaint during whole period.
Negative Points of Fixed Interest Rate on Home loan
1- It is usually 1 - 2.5% more than the floating rate home loan.
2- If for any reason the interest rate decreases, the fixed rate home loan doesn't get the benefit of reduced rates and the borrower has to repay the same amount every time.
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