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The Oracle home directory is the location in which the Oracle RAC software is installed. If you have different versions of Oracle RAC or Oracle Database installed on the same server, then each installation requires its own Oracle home directory. Multiple versions of the same product or different products can run from different Oracle homes concurrently. Products installed in one Oracle home do not conflict or interact with products installed in another Oracle home.
You do not need to create these directories prior to installation. By default, the installer will suggest a subdirectory of the Oracle base directory for the Oracle home.
Using different Oracle homes for your installed software allows you to perform maintenance operations on the Oracle software in one home without effecting the software in another Oracle home. However, it also increases your software maintenance costs, because each Oracle home must be upgraded or patched separately.