Home Loan with Variable Interest Rates Calculation Examples | Home Loan Calculation Method

Home Loan with Variable Interest Rates Calculation Examples | Home Loan Calculation Method [HINDI]
In this vide by FinCalC TV we will see variable rate home loan calculation examples with the help of excel calculator in hindi. This Home Loan Calculation Method is similar to loan calculations in banks such as SBI, HDFC, ICICI, etc.
Variable or Floating rate home loans interest rates changes with time. They are also called adjustable rate home loan (ARHL).
Whereas fixed rate home loan's interest rate is fixed throughout the loan tenure.

Website Blog link:
https://fincalc-blog.in/home-loan-wit...

Home Loan EMI Calculator:
https://fincalc-blog.in/home-loan-emi...

Home Loan Videos Playlist:
   • Home Loan EMI Calculator Excel with P...  

JOIN Telegram Group:
https://t.me/fincalc_tv_channel

CHAPTERS:
00:13 Variable Rate Home Loan Intro
01:33 What is Variable or Floating Rate Home Loan?
02:34 Fixed vs Variable Rate Home Loan Differences
03:41 Variable Rate Home Loan Calculation Examples [EXCEL]
08:34 Interest rate change effect on Home Loan
11:55 Home Loan Prepayment calculation example
13:52 More examples with interest rate change
17:14 Which is Better - Fixed or Variable rate home loan?
18:00 Conclusion

ALL EXCEL CALCULATORS VIDEOS:
   • All EXCEL Calculators  

WHAT IS A VARIABLE HOME LOAN RATE?
Variable Home Loan interest rate also called Adjustable Rate Home Loan (ARHL) also called Floating rate Home Loan, is the type of home loan in which interest rates changes over time, specifically based on the change in repo rate by RBI (Reserve Bank of India).

Recently we have seen home loan interest rate increased by 2% within a short period of time. This will mostly impact the home loan buyers with variable interest rates, as their interest rate will be also increased on reset dates.

FIXED RATE HOME LOAN FEATURES
Below are some features of Fixed Rate Home Loan:

Interest rate on your home loan remains fixed throughout the loan tenure
Fixed rates are slightly higher than variable rates
If you are comfortable with the mentioned interest rates, and are reasonably sure that interest rates will rise in future, opt for a fixed rate home loan
There is a prepayment penalty in case of fixed rate home loans

VARIABLE RATE HOME LOAN FEATURES
Below are some features of Variable Rate Home Loan:

Interest rate on your home loan changes based on change in the lender’s benchmark rate
Variable rates are slightly lower than fixed rates
If you are unsure about where interest rates are heading, opt for a floating rate home loan
There is no prepayment penalty in case of floating rate home loans and you can close loan before time and without paying penalty

WHAT HAPPENS WHEN HOME LOAN INTEREST RATE VARIES?
There are multiple things happening when your home loan interest rate increases:

You interest amount portion in EMI increases
Since your EMI needs to be kept same, the loan tenure increases when interest amount increases
You have to pay your loan EMI for longer tenure
The principal amount portion in your EMI decreases

FIXED VS VARIABLE RATE HOME LOANS WHICH IS BETTER?
Choose variable rate home loan if:
You expect interest rates to fall
You are unsure about interest rate movements
You want some savings on your interest cost in the near term

Choose fixed rate home loan if:
You are comfortable with the EMI you are committing to pay
You expect interest rates to rise
If interest rates have come down and you wish to lock in at that rate

CONCLUSION
If you already have variable rate home loan, it is better to make periodic prepayments to reduce your loan interest and close your home loan as soon as possible, to reduce the impact of interest rate increase.

And if your are looking to buy new house on home loan, assess all your benefits you might get on fixed and variable home loan rates and choose accordingly.

#homeloan #interestrates #calculation #fincalc

============================
LIKE | SHARE | COMMENT | SUBSCRIBE

Mujhe Social Media par FOLLOW kare:
Facebook :   / fincalctv  
Twitter :   / fincalctv  
BLOG: https://fincalc-blog.in
Telegram: https://t.me/fincalc_tv_channel
Instagram:   / fincalc_tv  

============================
MORE VIDEOS:
SIP Excel Calculator:    • SIP Returns Excel Calculator| SIP vs ...  
Income Tax Calculator:    • How To Calculate Income Tax FY 2021-2...  
Loan EMI Calculator:    • Home Loan EMI Calculator Excel with P...  
Loan EMI Prepayment Calculator:    • Home Loan EMI Prepayment | How to Sav...  

============================
DISCLAIMER:
Examples and demo used are for Illustration purpose only and might not cover every detail of examples shown. It is advised to seek professional help before taking any financial decisions. The owner of this channel shall not be liable in any way.