House Loan

5 Things to watch out for When You’re Buying a Home

A home loan can be a great source of finance to purchase your dream house.

Why? A sudden surge in funds is readily available, and you don't need to utilise your savings. Of course, there is some protocol to follow along the way, and a lot of mistakes to be made.

Here are a few of the mistakes you need to avoid to help you progress from the stage of being a loan to a happy homeowner.

Not Checking your Salary

First off, you must be clear on what you can afford. Taking a home that exceeds your ability to pay the EMIs can be stressful on your monthly income.

Make an assessment of your monthly income. For this, you'll have to add all the money you spend on expenses, utility bills, maintenance charges, and basically every little cost that eats away at your salary. Once you've done that, subtract it from your overall salary.

The figure you get will give you a brief idea about the EMIs you can afford to pay, while keeping a portion of your funds aside in case of an emergency.

The lenders might make promises of giving you the best home loan Emi calculator and tell you that it's affordable, but don't strike a deal immediately. Look around for a few more policies and calculate the estimated expenses before taking the leap.

Thinking you know it all

Don't make hasty decisions without consulting anyone. Members of your family and friend group may have some experience dealing with a home purchase before, so it's always a good idea to talk to them for any tips they might have.

If help doesn't seem to be within your social circle, there are always financial experts with the knowledge of how these loans work. They'll be able to guide you through the process by explaining the house loan Emi calculator eligibility and advising you on your loan amount and choice of property. These professionals also excel at networking, which might be useful in finding the right deal.

Ignoring your Credit Score

The lender is going to scrutinize your candidacy for a Emi calculator application, so be ready for it. You don't want your application to be rejected after searching for the ideal home and finding the best deal, do you?

In that case, bring your credit report and submit it to the lender. This document is important as it determines the likelihood of you being able to repay your debt.

Forgetting to Lift the Curtains

If the Emi calculator amount, eligibility documents, interest, and an affordable house are the only things on your checklist, you're missing out on crucial component-hidden charges.

Article Source: http://EzineArticles.com/9370164

Home Loan Emi Calculator

Can’t Settle Your House Loan?

A few years ago, you successfully found the most suitable property loan for your condition. Almost everything had gone great and you were able to get the property of your dreams. But, the economic climate experienced some hardship despite the fact that some economic problems were were solved, the fiscal status was never the same. Because of the transformed situations, you are discovering it hard to match your monthly mortgage loan repayment.

It might be very difficult for anybody to be experiencing the same fiscal woes as yours. Failing to meet your mortgage repayments can result to default. Still do not fret as you are not the sole person enduring such a challenge. There's constantly a means to remedy this kind of problem. You only need to fix your focus straight and communicate with the right persons for help.

As fast as possible, you need to call your mortgage lender and get them to give you some help. It may well seem tiresome and no one desires to talk about their House Loan predicament. Even so, if there are people that will help you, they are your provider. They should be able to provide you with numerous solutions. But in the event you find the options they provide unsatisfactory, there's always a choice to switch to a new provider.

The fact that you are unable to make repayments signifies your credit cards may also be into their limitations. You may want to would like to speak to your credit card companies and discover exactly what agreements can be achieved. You might want to obtain a debt consolidation scheme to merge all your debts. Work with an online debt consolidation mortgage calculator to find out if a debt consolidation loan would work to suit your needs.

An alternative choice you have is refinancing. If you need to refinance your active mortgage to look for far better rates, you have to speak to mortgage broker who will offer you a precise step-by-step guide during this process. Many Australian mortgage brokers are offering refinancing mortgage loans. Go to a mortgage broker's website to learn more about refinancing. 

You can also employ a refinance mortgage calculator to ascertain just how much you will be able to save. Talk to your mortgage broker pertaining to the results from the mortgage calculator to obtain a definitive answer.

And finally, there is also the option of employing an accountant or financial specialist when you genuinely worry that you are close to defaulting. They'll give you some tips concerning exactly how you can correctly take care of your financial plans in order to avoid defaulting on your mortgage loan.

[Source: http://www.sooperarticles.com/finance-articles/mortgage-articles/cant-settle-your-house-loan-530116.html]

Calculate Home Loan Emi

Low Cost Home loan emi calculator

It really is worth the effort to apply for cheap mortgage products. If you are looking at purchasing a new home, getting an equity line of credit or refinancing a mortgage you have currently, affordable mortgages are available right now.

Cheap Home loan emi calculator

As you are shopping around for Home loan emi calculator there are a few things that you should keep in mind. All loans come with different terms and features, and you need to be able to distinguish between them to make sure that you to get the right loan right from the start.

Search the Internet

Some of the mortgage product offers are on the Internet. It can be very time-consuming to travel to different banks and sit down for appointments. The power of the Internet gives you the opportunity to relax in the comfort of your own home and find the perfect loan.

Here are some of the important features you should be looking for.

Application fees - Look for mortgage that doesn't charge high application fees, or better yet, none at all.

Redraw fees - There are mortgages available that will allow you to redraw money without paying any fees. Look for this type of feature to save money.

Split loans - It is good if you are able to have separate accounts for your loan and are able to combine a home loan with a fixed-rate with a variable rate loan, and/or a line of credit.

Portability - Some financial institutions will allow you to make a transfer of your loan over to a different property, or substitute the security of another property for your home loan.

Loan terms - Most banking institutions will offer a 15 year or 30 year term for the mortgage. There are some lenders that will go down to 10 years, which gives you more choice when you are looking for a new home loan.

Rate drop - Once in a while you will find a bank or lender that will drop its rates after you have proven to be a good client. This is an invaluable asset to find in any loan, since it will save you a lot of money in interest charges throughout the years.

Type of loan

One thing to keep in mind when you are looking for Home loan emi calculator is how long you plan on living in your new residence. If you think that you may be planning a move in the near future, you should consider getting an adjustable rate to take advantage of the low interest rates associated with this type of loan.

In most cases a home loan with an adjustable rate will have a lower rate of interest for the first few years. If you plan on moving soon, either to relocate to another city or to purchase a larger home, you won't have to worry about the rates going up since you will be selling your home in the not-too-distant future.

When you are shopping for cheap home loans look at all the features on the loan and not just the interest rate. You should find a loan that not only has a low rate of interest, but also has affordable features and very low fees. You are going to be living with this loan for many years, so make sure that you pick the right one the first time.

Article Source: http://EzineArticles.com/5547861

How to avail home loan with easy monthly installment options?

Home loan is a secured form of loan that is offered against the security of house/property which is funded by the bank, the property could be a personal property or a commercial one. It’s a loan taken by borrower from the bank issued against the property / security intended to be bought by the borrower a conditional ownership over the property. These are attractive and popular means of buying a dream house for most people.

Every day millions of people apply for home loans with leading government or private banks and finance companies in India. Today, it has become the prime source of finance aid to people who work hard and strive to build their home but struggle due to high inflation costs, lower salary or other responsibilities towards the family.

While taking a loan the primary concern would be the interest rate applicable and EMI for home loan. These are the prime source for deciding your loan affordability. Some private sector banks or finance companies are offering loans at an interest rate as low as 9 to 10% and come under fixed or floating rate basis concept. Under fixed rate loan the ROI remains constant throughout the loan period, while in floating rate loans the ROI is linked to market conditions and may change periodically. They could be linked to the base rate, inflation, or other parameters, each bank selects its own methodology to fix this base rate. These rates have to be declared by the bank each quarter. Some leading private sector banks offer loans in the form of adjustable rate of interest loan, Trufixed loan (2 to 3 year fixed rate variant) or Trufixed loan (10-Year Fixed Rate Variant).

Each bank has its own pattern of calculating the Property loan emi calculator and it vary based on the customer’s credit profile.  The interest rates depend on various factors like availability of money in the market (liquidity), inflation and monetary policies. They are categorized in two ways fixed rate or a floating rate. For fixed rate loans, the ROI remains constant throughout the loan period, while in floating rate loans, the ROI is linked to market activities. Each bank selects its own methodology to fix this base rate. These rates have to be declared by the bank each quarter.

In India, generally banks or finance companies offer lenders loan amount upto maximum 80-85% (below 20lakh) of the agreement value of the house. Incase of home loan for resale flats, most lenders get the property valued independently and provide housing loan based on their value than the cost mentioned in the purchase agreement.

You can repay the loan through EMIs. Property loan emi calculator could be set for maximum tenure of around 20 to 25 years. Some of the banks provide housing loans even for a tenure extending upto 25-30 years. The tenure is restricted to the borrower’s and credit history.

Taking loan means a big decision of your life. A little bit of mis-calculation can burn a big hole in your pocket. The decision has to be carefully scrutinized and move ahead. To ease your mental burden banks and finance companies have come up with easy home loan interest calculation methods online.  Emi for home loan could be calculated easily with no stress on your brain for tedious calculation and waste your valuable time.

There is a loan amortization table that will further break down your monthly EMI into the principal and interest components and will give you an idea of exactly how much interest you are paying over the entire period of the loan. Property loan emi calculator help you estimate the potential savings on your loan amount making it affordable and easier on your pockets in the near future.

Home Loan

Taking a loan can win you lender’s trust

Most of us try to be careful about paying dues on time, but the strike rate is rarely 100%. Some late payments have a temporary effect, maybe a one-time fine. But there are others that have short-term as well as long-term repercussions. For example, on a home loan, if you are late in paying the installment, you have to pay a penalty and it affects your credit score in the long run.

Here are a few ways you can ensure that your score remains on the higher side of the scale.

Pay on time

If you are a salaried employee who gets her pay once in about 30 days, then it is easier to schedule loan payments such as for a Housing Loan and an auto loan. But what about those who are away for long periods, say, on a merchant ship? Or those who have seasonal employment?

Know the details

Reading the details will mean you know about grace periods, penalty rates, interest rate calculation and more. Most of this is available in the loan documents and the lender’s website. You can also call the customer service center for help.

Use credit cards wisely

This is probably one of the most common loans that people take. But it is also the least understood.

Many individuals, who have had bad experiences with this product, shun it absolutely. If you had issues with paying your credit card dues in the past, and are wary of using it again, it won’t help your credit score.

Your basket of loans

Your credit profile also depends on the types of loans, i.e., your mix of secured and unsecured loans. Secured loans are those that have collateral attached, such as a home or a car loan. If you default, the lender can take away the ‘asset’. Unsecured loans, such as credit card or personal loan, are riskier for the lender because they don’t have attached collateral.

[Source: http://www.livemint.com/Money/68QAwMldEIeKmOUwye4nhO/Taking-a-loan-can-win-you-lenders-trust.html]

The Problem With Home Loans

The latest in Reserve Bank of India’s measures to protect customers with home loans is a proposal to change the way banks determine their `base rate’ – the benchmark for all floating rate loans. The need for a re-look arose because customers have been complaining of a raw deal in pricing.

In recent years RBI has taken a number of measures to provide a better deal for home loan borrowers. The introduction of base rate ensured that banks do not reduce rates only for new customers by playing with the interest spread. In the past banks could play with the spread as they would lend below the prime lending rate (their earlier benchmark) for new customers while old customers continued to pay over the PLR.  This was not possible with the `base rate’ which was also the floor rate for pricing. In June 2012 RBI forbade banks from imposing a penalty on pre-payment of home loans irrespective of whether the loans were being refinanced or repaid. This made it possible for disgruntled borrowers to move away to rivals if their loans were not re-priced when interest rates were falling.

But there are a number of areas RBI could look into as part of its consumer protection initiative. Here are a few.

Compulsory insurance: Banks have an interest in the property mortgaged with them and they need to ensure that it is protected against any eventuality. At the same time banks also gain by selling insurance policies.  But what needs to be insured is the cost of construction and not the cost of land. 

A 1000 square foot house may cost Rs 2 crore in Mumbai but the cost of construction would be around Rs 20 lakh. So there is no need of buying property insurance for the whole loan amount. Yet many banks insist that the buyer pay 15-year insurance premium upfront based on the market value of the property rather than the construction cost. Also in cities like Mumbai, the property is owned by the cooperative society which is required to insure the property. It is therefore not clear whether the bank’s insurance policy will pay a claim when the housing society is also making a claim for the property damage.

Non-intimation of interest rate changes:  Most home loan borrowers focus on the interest rate at the time of availing home loans. But floating rates are dynamic and vary from time to time. The borrower is not aware of this because while rates vary, the equated monthly installment or EMI does not. Banks merely change the tenure of the loan. So in a rising interest rate regime it is not unusual for borrowers to find that their principal loan amount is unchanged even after years of repayment.  Very rarely does a bank communicate to the borrower changes in interest rates.

Notice of intimation of mortgage: In Maharashtra the government has made it compulsory for all mortgage interests to be registered. This is aimed at preventing fraudulent sale of the property even as a loan is outstanding.  While the objective is laudable, the trouble is with the process. Although the law actually protects the bank’s interest lenders have shifted the onus on the borrower.  Rather than use their institutional clout to facilitate smooth registration, borrowers are forced to approach agents and spend a few thousands to complete this process.

No refinancing of existing loans:  Lenders often poach from home loan borrowers of other institutions. But when it comes to their existing customer they do not offer them the benefit of new rates.  If there is a special scheme running in the bank, existing borrowers are not informed of it. Also banks charge customers a processing fee even when their loan is refinanced within by their own bank but under a different scheme.

Complex pricing: Some banks have resorted to complicating the pricing of home loans introducing interest free years in middle of the tenure of the loan. Innovation in financial products are good only as long as they do not obscure pricing. Borrowers need to have the opportunity to compare the cost of one home loan against another.  One way to make the pricing transparent is to disclose the cost in the form of annualised yield to the lender based on prevailing rates.

Source: http://blogs.timesofindia.indiatimes.com/small-change/the-problem-with-home-loans/