Calculate your Home Loan with Home loan interest calculator

When you choose to take out a loan, the most imperative thing that you must pay consideration on is the thing that reimbursing the advance will be similar. Any credit that you take will include paying a sure measure of interest. More often individuals who get into troubles with loans do so because they find themselves not being able to reimburse the important aggregate of their advances or the interest or both. It is hence essential that you know the amount you will need to pay before you take out a credit. This is the reason Home loan interest calculator is especially helpful.

Calculating the amount of cash that you will need to reimburse once you incorporate premium can be troublesome. This is especially genuine if the measure of cash you are managing is substantial, as on account of house advances or home loans. The sums you manage while Getting qualified for a home loan are for the most part huge, as the advances are to acquire the cash you require to buy a home. With regards to managing extensive numbers, numerous individuals who don't utilize a credit adding machine will frequently commit errors. With them you can bear a home of your dreams in a convenient manner. The experts help in understanding each and every query in best possible manner.

If you are looking for Home loan interest calculator then simply start finding the authentic company on the internet. With the aid of the internet you will be able to get the trustworthy company as per your real estate sector requirement. The right loan instalment calculator will have the capacity to offer you some assistance with calculating what your installments will be similar to given the measure of your advance and the interest you need to pay on it. With an aid of loan payment calculator, even before you take out an advance, you will have the capacity to decide precisely the amount you need to set aside consistently so as to reimburse your advance and to what extent it will take to reimburse your loan.

With the aid of this company you will be able to get the perfect solution for mortgage payment solutions. It is very essential that you select that you make utilization of the right Loan payment calculator. Home loan interest calculator is trustworthy and will give you precise figures when you are attempting to decide precisely the amount you will need to pay given an advance of a sure sum. This will be extremely helpful to anybody endeavoring to figure out whether they have the monetary intends to benefit a credit. Apart from this if you are looking for further more services concerned to How to qualify for a home loan then let them know today.

http://articles.abilogic.com/119616/calculate-your-home-loan-home.html

House loan calculator

Home emi calculator

Has rate cut reduced your home loan EMI?

After the Reserve Bank of India’s 50 basis points (bps) repo rate cut, in the past 10 days, almost all major commercial banks have cut their base rate. One basis point is one-hundredth of a percentage point. Base rate is the minimum lending rate below which banks can’t lend to a customer. The base rate cut has been in the range of 20-40 bps.

Impact on home loans

This week banks revised their home emi calculator rates wherein some have increased the spread. A spread on home loans is basically a premium charged above the base rate and it varies from bank to bank.

In a high interest rate regime, banks were offering home loans even at the base rate. For instance, when SBI’s base rate was 9.85%, home loans were offered at the same rate for women customers. However, last week after it cut its base rate to 9.3%, the interest rate on home loans came down to 9.50-9.55% because the bank increased the spread between the base rate and home loan rate to 20-25 bps.

New borrowers

The interest rates offered are better than what it was in the past couple of years. For instance, SBI now offers an interest rate of 9.55% to salaried individuals compared with 10.15% during the same period last year. Hence, the monthly instalments (EMI) on a home loan of Rs.50 lakh with an interest rate of 10.15% and tenure of 20 years will fall by around Rs.1, 980 per month if the lending rate is cut by 60 bps to 9.55%.

But before you jump at the first sight of a lower interest rate, do keep in mind that interest rate is not the only parameter to consider before opting for a loan. Do shop around and compare the interest rates of other lenders. Don’t only look at the base rate; factor in the spread on the home loan. You should know that when a bank says that its base rate is 9.3%, it does not mean that it is the rate at which you will get a home loan.

Along with the interest rate, you should also factor in other costs associated with a home loan. These costs include processing charges, documentation charges, commitment fee, inspection of document charges and stamp duty cost. Processing charge is typically 0.25-0.50% of the loan amount which is generally non-refundable even if your loan application is rejected. Also most of the other charges are negotiable.

Existing borrowers

For an existing borrower, the interest rate on home emi calculator comes down if there is a drop in the base rate. And generally the spread on the home loan remains the same. “The interest rate and spread on home loan for our home loan customers is not uniform and varies depending on when the customer took the loan. In a higher base rate regime, we had reduced the spread. There are customers who now continue to get loans on the base rate and some on a lower spread because as per the contract it remains unchanged.

Should you switch?

You also have the option to switch the loan to a new lender. While switching to a new lender, interest rate is not the only thing that you should consider. Firstly, compare the interest rate. And while factoring in the interest rate, calculate the remaining tenure of the loan.

“If the home loan is in the initial year of repayment and you have a longer tenure remaining, switching is likely to be more lucrative as compared with switching the loan when the end of the tenure is approaching,” said Sadagopan.

There are costs attached to switching your home emi calculator. These include foreclosure charges of the existing bank, prepayment charges of the new bank, nominal expenses of vetting the property, documentation cost, stamp duty and insurance cost.

Switching your home loan is similar to taking a new home emi calculator —you have to do your homework So, factor in the time and effort taken to switch to a new home loan.

http://www.livemint.com/Money/7mxoC4qvI5bLGxK8V3o9WL/Has-rate-cut-reduced-your-home-loan-EMI.html

Best Way to Prequalify for a Home Loan

Have you been planning to buy a new house for some time now? Experts are saying that this is the best time to buy one since homes have a very low price. Though the interest rates are in a slowly ascension, this raising can become pretty steep starting with the next year. Therefore you should not wait too much and depose the necessary documents for a home loan, in case you do not have enough money. The best thing that you can do is to ask for a teaser loan that some banks are offering. The teaser loans give you fixed EMI for the initial 13 to 36 months, period that depends from bank to bank.

But first you need to get prequalified to obtain a home loan, no matter what type you choose. To be sure that this thing will happen, you need to follow some certain steps:

The first step needed to be taken to obtain a Home loan emi calculator prequalify is to obtain a referral or a lender or mortgage broker from someone. You can search among your friends, people from work, neighbours or real estate brokers for someone disposed to do this for you.

For the second step you will need to gather together all the paid bills from the last three months or any other papers that are helping you keeping the track of your money and to make some calculations. Keep in mind that you have to avoid lying since before according you the approval for the Home loan emi calculator, they will check carefully every single detail. You will need to provide information about your monthly income, but also about total monthly payment. This will include things like minimum monthly payments on credit cards, car payments, child support and, in generally, all payments you have to do in an entire months.

There is a term called "ratio" that is telling you that you are prequalified for a home loan or not. You can do the calculations alone or you can ask your lender to do it. Anyway, this can be known by adding all your debts together as a sum and compare it to your income sum. Now, your total debt-to-income ratio has to be fewer than 36 for the best interest rate. If this ratio is lower than 36, than you are qualified for this. If it is higher, than you do not have any chance for a home loan.

Also, your lender should prepare a letter of prequalification for you. In it he should write that your initial financial and credit information has been checked and that they look good.

Following all these steps you will increase considerably your chances to get prequalified for a Home loan emi calculator. Yet, prequalified is not the same thing as preapproved. In a blistering market, you're going to need to make some extra steps and get preapproved for a home loan before you declare interested on a home. If you are thinking that the paperwork is hard to make, you can always hire a realtor to do this for you and to make you Prequalify Home Loan.

http://ezinearticles.com/?Best-Way-to-Prequalify-for-a-Home-Loan&id=5909494

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

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]

Knowing What an Investment Property Loan Is

Do not get confused, the term investment property loan simply means a loan for investment of properties. These properties to be invested on are deemed to be profitable in the future that is why people loan to buy them. Presently, the real estate industry has become a lucrative business. A lot of realtors have testified on how they have come from rags to riches after getting into the real estate business. Depending on your talent and the circumstances, loaning to invest on a property may provide you with a good chance of building equity while nurturing the potential of capital gains as the value of the property appreciates over time. If you have the ability, it is definitely not a bad endeavor to try.

An investment property loan can be generally classified into two: residential and commercial. A residential loan is associated with investing residential properties like apartments, condos, buildings (with at least 5 units), stores, or warehouses. They are usually bought for expected future appreciation and rental income. On the other hand, a commercial loan is the one associated with investing on business and commercial areas. They are often more costly since bigger income is also expected to come from them.

Individuals are not the only ones loaning to invest on properties though. Quite a number of real estate investors in the U.S. make use of investment property loans in acquiring real estates too. There are two basic advantages on this. They can benefit from capital growth and tax deductions. Another important benefit comes from "negative gearing".

In essence, the word "gearing" means borrowing for investment. A negatively geared investment means it is a property purchased using a Property Loan Emi Calculator where the expected income (after all the expense deductions) from the investment is less than the annual payable interest. This gives the investor a substantial tax benefit since they may deduct the cost of owning an investment property from their income which is taxable.

An investment property loan can come in different shapes and sizes depending on the requirements of the investors. They may be offered as interim, long-term or short-term loans. If you are interested in engaging into this kind of investment, you should make sure that you are knowledgeable of the terms of the loan. Make sure that you understand the interest rate and the time period of it. You must also keep track of the schedule. You want extra profit and not bigger credit.

There are quite a number of reputable investment property loans in the U.S. Most of them do not provide any limit on the number of properties you could own. They also offer adjustable mortgage rates and they have low down payment options. This is a great help because you can simply use the spare money to repair or renovate the property for future profitable use like reselling it or having it rented. A lot of loan providers also offer application online meaning you will not have to waste time setting an appointment with them or going to their office. Their online service allows quick and easy processing of your application for loan.

[Source: http://ezinearticles.com/?Knowing-What-an-Investment-Property-Loan-Is&id=3284349]

How to Calculate the Proceeds of Your Home Sale

Selling a home takes a lot of hard work on the part of the home sellers especially if they are doing it on their own. A major part of the process involves a lot of calculating numbers from setting the home price, taxes and legal fees to the amount of profit the seller is going to get. But of course, even before the sale is completed, every seller would want to know the net proceeds he or she will get.

The money you will have when by the closing of the home sale transaction will be the total sale price of the property. However, you won't be able to keep the entire amount as you may need to pay for debts, liens and other charges against the property. So, your net proceeds will actually be the total sale price minus the charges which mostly make up the closing costs.

Below are several important fees that are normally paid out of the sale proceeds. Knowing these charges as well as setting a fair market value for your home will help you accurately calculate your potential net profit.

Attorney's fees. Every home seller will need the help of a real estate lawyer. The attorney plays a vital role in the financial transaction not only as an advisor but also as an escrow agent when you need a third party to keep the deposit or down payment. The fee is either a flat fee at a minimum of about $350 or by the hour.

Disbursements. These refer to expenses incurred by a lawyer on behalf of the seller such as the mortgage discharge fee paid to land titles, title search fees, couriers and other charges.

Property taxes. These taxes are paid every year. However, this can be negotiated as to who will should the payment.

Transfer taxes. This is a tax that may be implemented by states, counties or municipalities on transferring real estate property within the jurisdiction. Transfer taxes may range from a small of .01% to 2.2%. It is best that before selling your home, you check your area's rates from the Recorder of Deeds, a title company or a realtor.

Mortgage. The balance of your mortgage will be paid out of the sale proceeds. Unless your mortgage is in good standing, you will also have to pay for mortgage penalty and a discharge fee paid to the lender. All mortgage payments due on or before the possession date will have to be paid by the seller.

Home Loan India. If there's a home equity loan or line of credit secured on your home such as via collateral mortgage or caveat, it must be paid out of the sale proceeds. Also, payment for any home renovation loan will have to be taken out of the proceeds.

Home warranty. This guarantees the buyer that all mechanical and electrical appliances in the home are in good working condition on the day of closing up to the first year of ownership. A warranty costs at a minimum of $350.

[Source: http://ezinearticles.com/?How-To-Calculate-The-Proceeds-Of-Your-Home-Sale&id=1208280]

A Fair Trade against Property

If you need money really bad and if you own your own house then getting a mortgage might be the easiest way out. They then pledge their property as a security against money lent to clear the debts. This option is common in the west where people are keen on buying real estate properties and cannot afford to pay the full amount within a short span of time. Get professional help in understanding your specific mortgage. There are many offerings out there and all are different.

The mortgage company should be authorized and registered before they start handing out mortgage loans. So, before buying a Mortgage, make sure to check the following issues:

1. Through Emi Calculator Housing Loan  a mortgage is a long term relationship. So, make sure you know all there is to know about the background of the issuers. You must find out how strong they have been, and what their rate of interest is. Then you must compare the same with other companies to know who the best is. Also, look at how many years the company been in this field. Good credit ratings are another plus as they reassure the person in need of the loan.

2. After checking the issuing company's background, focus on getting all the information you can lay your hands on. The duration and the rate of interest applicable will matter. Make sure you divulge information pertaining to the other financial commitments you have and the time you might require to pay back the loan. Also check about penalties for delayed payments, or possible options if you want to repay before time. If a company is able to accommodate your needs and provide the suitable mortgage, they are the right choice for you.

3. All promises made to you, including any promises of future flexibility, should be documented. Oral promises are not binding unless proven. If the company refuses to sign a contract, they are not reliable or trust worthy, move on to the next company you find. The written document will be legally valid in case either you or the company defaults at a later date.

4. Other charges that might be applicable from time to time -- If you are able to repay the loan before the stipulated time, the mortgager will charge a redemption penalty, so make sure to have that mentioned in the agreement. In the zeal to make a sale, your agent might actually have "forgotten" to tell you about some specific charges.

[Source: http://ezinearticles.com/?A-Fair-Trade-Against-Property&id=820995]

Home Loans - Things to Know

Home loans have made home buying in India approachable and manageable. There are many leading companies that provide customers with easy loans. In the home loan arena, government and well established companies are considered to be the most preferred loan institutions. Known for their unique and compelling propositions, these companies have enabled a hefty number of people achieve their aspirations. There is no point in signing the dotted line of a scheme, which is dripping with heavy interest rates and inconvenient operations of EMI. In simple terms, it is imperative to first understand the do's and don’ts of applying for loans.

Loan Application Requisites:

The usual protocol which banks usually follow is to keep the loan amount 60 times more than your net monthly income.

Your monthly income has to look reassuring to repay the amount in future. For example, if you wish to take a loan of Rs. 30 lakhs, it is mandatory to earn Rs. 50,000 every month.

In case you have taken personal loan or that for buying an automobile, you are not eligible to apply for a home loan.

There are certain things which are required in documentations like address proof, identity proof, income proof etc. that needs to be submitted to the bank or financial institution.

The features and benefits enjoyed by the Home Loan takers are voluminous. Although there are many features which are an integral part of the loan scheme, here are some of those mentioned.

Total Loans:

Many companies understand that purchasing your dream nest and doing all the fittings and other essential tasks would cost you a hefty amount. If you have bought a house and are moving in immediately, these companies give you a separate amount for meeting this requirement as well.

Part Prepayment Facility:

If you have paid your first EMI successfully, you can make prepayments for your loan. Monetary situations might differ from time to time, and most of the people do prefer to make chunk payments, as and when they have funds. Hence, this feature enables them to pay as many EMIs in advance as they like. However, the minimum limit for this is 3 months.

Refinance:

Buying a property with your own money can help you avail this benefit; provide you have bought the property within 12 months. You then become eligible to take loan against property which has been registered.

Prompt Repayment Benefit:

If you are an early bird and always pay your EMIs on time, then you are in for a reward. On clearing the first 12 EMIs on time, you get 0.5 % of the annual interest amount paid back, at the end of 12 months. You get to enjoy this facility for the first 3 years of your loan tenor.

Nil Foreclosure Charges:

Loan can be foreclosed at any time of your home loan tenor. The good news is that you are not subjected to any foreclosure charges.

Online Account Access:

These days, financial companies have their online customer portal that provides details like repayment track, interest certificate, payment schedule and others, regarding your loan. To avail this service, the customer has to make an account on the digital portal.

[Source: http://ezinearticles.com/?Home-Loans---Things-to-Know&id=8522378]

How to Calculate Your Mortgage or Home Loan Payments?

Everyone dreams to have their own house. A house will probably be your largest purchase. To make this dream come true, you work hard; you earn all your life to buy a house. You take a mortgage loan and repay it throughout your life. Every month, you just pay the amount given in your loan statements. When you pay your monthly installments, have you ever wondered how that figure has arrived? Have you ever thought of trying to understand the calculation of your mortgage payments? If not, now is the time.

You are spending your hard-earned money in paying for your mortgage loan amount. How can you be sure that the mortgage company is charging you the fair amount? In the past few years, there has been a lot of financial crisis, especially in the housing sector. But people have learned from it. They are now more in control of their finances. They wish to know where and how their money is going. Thus, everyone wants to know the calculations for mortgage payments on your home.

Calculating home loan payments is not a difficult task. Many home loan calculators are available on the internet. All you need to do is provide the basic details that are: the principal amount of loan, the interest rate, and you loan tenure. You can easily calculate your monthly payment by putting in just the above details. The Property loan emi calculator available on our site will help you to calculate your mortgage payment.

In case you wish to apply for a fresh mortgage, you can put in many combinations of the above three ingredients to get various payment options. For example, if your loan principal is $100,000, interest is 7% and term is 30 years, your EMI will be $665.30. But if you reduce the term to 20 years, the EMI will be $775.30. If you believe that you can pay an extra $90 every month, you can easily keep the tenure as 20 years. When you know how to calculate the payments, you can see what options will suit you the most. This way you can negotiate with the lender at the time of deciding the interest and tenure and the repayment schedule.

However, there are more factors that go into mortgage payments. Even if you have calculated the loan EMIs, you might find your actual monthly payments to be more than you expected. That's generally because of taxes and insurance. So after you calculate your mortgage payments, don't forget to add the homeowner's insurance, taxes and private Property loan emi calculator to get the actual mortgage payments.

There are many benefits in learning to calculate your mortgage payments. Some of them are as follows:

• You will be in control of your finances.

• You will know how much of your payments are towards principal and how much towards interest.

• You will have the knowledge as to what accounts for your monthly mortgage bill.

• You can catch the occasional errors made during billing by the mortgage companies.

• You will know whether or not you have a good deal on your mortgage.

• You can reduce your mortgage cost by refinancing your mortgage if your current mortgage is charging very high.

Article Source: http://EzineArticles.com/5416241

Home Loans - Possible Hurdles and Solutions

A Home Loan is a long-term legal contract between a customer (home loan seeker) and the bank. Hence it is very important for a home loan seeker to be fully aware of all the legal terms and conditions that involve in the processing of a home loan.

A home-loan seeker may face several difficulties including certain legal issues in the processing of a home loan. He/she has to be very careful and must have a good knowledge of all the legal aspects pertaining to home loan processing. The following tips will greatly help you to educate yourselves in this regard and obtain a hassle-free home loan.

1.         Through the Home Emi Calculator Home loans process starts with documentation. Documents pertaining to a property are of great value and play a key role in completing the process. So, a home loan through

seeker must be very careful when submitting the documents to the bank. Never submit any fake or unclear documents that may create confusion or misguide the banks; banks have every right to take legal action against those who misguide them.

2.         The details that you furnish in the application form should not include any discrepancy. Banks make a careful study into these details, and if they find discrepancy, your application is certain to be rejected without any prior notice.

3.         Retain all your receipts of the amount paid towards the credit card bills as banks may ask for the receipts of the payments once the details are found in CIBIL.

4.         A panel of advocates will scrutinize the documents submitted by the home loan seeker. They will obtain the search reports from the concerned sub-registrar office to find out the details of deeds and the vendors pertaining to that specific property. If they find any discrepancy in the documents, banks will ask the customer or vendor for clarification or for other supporting documents.

5.         Property that the home loan seeker intends to acquire will be evaluated by technical values, and if any find any deviations in the property, customer has to submit additional documents to support the deviations.

6.         Upon completion of the entire process, vendor has to verify all his original documents with the bank official before disbursement of the loan, and the customer has to submit latest Encumbrance Certificate (EC) recording all transactions of the property in original.

7.         Customer (home loan seeker) has to sign all the legal documents and the Home Loan Agreements in regard to the disbursement of the loan, and the property will be hypothecated to the bank till he/she repays the entire loan amount subsequent to the registration of the property. Customers are advised to carefully read the agreement copy before signing it.

8.         If the customer fails to repay the loan, banks may appoint agents to collect the easy monthly installments (EMIs) from the customer, and he/she has to co-operate with them.

9.         If the customer gets defaulted, bank can seize the property to recover the loan amount; and once this happens he/she will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).

Finally, it is advisable to take as less loan amount as possible so as to save the interest paid on the loan. Also, be punctual in repaying the loans to maintain a good credit history.

[Source: http://ezinearticles.com/?Home-Loans---Possible-Hurdles-and-Solutions&id=1854622]

Determine Your Ability to Pay a Loan with EMI to Income Ratio

Everyone is capable of forming a budget, of how much to should spend on home, car, retirement funds, insurances, daily expenses, and so on, and how much they should save every month. Budgeting is crucial for sustaining yourself in the long run, especially if you have something like a home loan to factor in.

You may have created your own budget and you may good at it, but did you ever wonder what would be the ideal budget for you? The 50/30/20 rule coined by Harvard bankruptcy expert Elizabeth Warren and her daughter,

Calculate Your After-Tax Income

Making a budget is all about splitting and allocating your monthly income among other commitments and expenses. Before you do anything, you need to know how much money you are really dealing with. Your monthly salary can be misleading as there will be a tax cut. Therefore, you'll need to calculate through Emi Calculator Housing Loan how much money you will have in hand to play around with after government taxes are deducted. Once that is taken care of, you will have to add back any other deductions that were made on your monthly income like health care, retirement plan charges and so on.

Limit Your Needs to 50 Percent

Needs are different from wants. You've heard this so many times and you've even said this yourself. Now it's time to look at all of your monthly expenses and pick out which ones were made for your needs. These will include cost of housing and utilities, groceries, health and car insurances. The idea here is to sum them all up, and make sure that they do not cost you more than 50 percent of your after-tax income.

If you have problems in differentiating which expense is a need and which is a want, then use this rule: If the payment has a major effect on your quality of life such as electricity or medicine, then it is a need. If not paying for something would cause minor inconveniences to you, like the cable bill, then that's a want.

Limit Your Wants to 30 Percent

Now you know what wants are. These wants are important for living a happy life and for positively motivating yourself to earn more. According to the 50/30/20 rule, 30 percent of your after-tax income should be spent on all of your desires.

Spend 20 Percent on Savings and Debt Repayments

The remaining 20 percent should be spent on repaying debts that you have or save it for your retirement or emergency account. When you are placing debts in this category such are credit card payment, categorize the minimum payment of your credit card payment as a need.

[Source: http://ezinearticles.com/?Determine-Your-Ability-to-Pay-a-Loan-With-EMI-to-Income-Ratio&id=8519504]

What Does My Emi Consist Of?

When you apply for a loan irrespective of whether it is a personal loan, home loan or car loan, the second most important (the first being the rate of interest) aspect you should consider is your monthly installment. It is called equated monthly installment since it is the same amount you will have to pay every month until you repay your loan. This system is quite hassle free, because you have to contribute only what you can afford, and not use up your entire savings or income towards repaying your loan.

Your equated monthly installment or emi is composed of two main components:

Principal amount

Interest Rate

Before we try to understand how this works, let us familiarize ourselves with some of the commonly used terms in relation to emi.

- Principal amount: the original value of the borrowed amount.

- Interest Rate: an annually charged rate by the bank

- Tenure: The duration within which the loan needs to be repaid.

- Processing Fee: a small percentage of your loan amount (less than 3%) which is towards the bank's efforts for processing the loan application.

In the initial period of repayment, your interest will constitute a major portion of your emi whereas towards the end of your loan tenure, your interest will count towards zero and your emi will majorly consist of the principal amount.

For instance, if you are borrowing a personal loan of 5 lakh value, for tenure of 3 years at an interest rate of 15%, your emi will be 17,333. In the first month, you will pay 11,083 as principal and 6250 as interest. Similarly, towards the end of the tenure, you will be paying 17,119 as principal and 214 towards interest.

The difference between flat and diminishing rates

Now, you would have used an emi calculator to get an approximate estimate about the value of emi payable every month. This is usually a flat rate of interest i.e. the rate of interest is not going to change over the tenure; naturally your emi will also stay the same for each month.

However, if you have chosen a diminishing rate scheme, then this means that your interest rate will be calculated based on the current loan outstanding at a particular point during the tenure. Naturally, once the interest reduces, so will your emi. In fact, a diminishing rate of interest gives more avenues to save up on exorbitant interest charges.

If you have taken a housing loan, then you would have come across another term called floating rate, this will change depending on the market, it is not necessary that there should be an increase all the time; there are also chances of the interest rate reducing. Keep a window of 1% to 3% variation from the current rate. When you take this into account and calculate your emi, you will be in a better position to get an overall idea of how much would you be required to pay now, and how much you might have to pay should there be a change.

Apart from the change in interest rates, when you avail part-payment or pre-closure facilities you may have to pay a separate charge for the same. You may also include these charges when you use the emi calculator.

[Source: http://ezinearticles.com/?What-Does-My-Emi-Consist-Of?&id=8229026]

Choosing an Online Home Loan Calculator

As the adage goes, something that cannot be measured cannot be improved. This fact is inclusive of most things in life including home loans. If you're looking to live a debt free life, first make sure you calculate how much you can afford to spend. A home loan calculator is a great tool that'll help you get an idea of the monthly and yearly payment breakdowns. The calculator allows you to assess your mortgage payment options.

While some provide a simple calculation of the monthly spending that you can afford, after you key in the interest rate and the other expenses, there are some others that are elaborate and help you calculate several things. For example, if you'd like to know the maximum housing loan amount based on the annual income and the ability to service the loan, choose from a home loan calculator that determines the affordability of your loan.

All that you've got to enter is the monthly salary, the start interest rate, the loan term period and the maximum percentage of income that you can afford to spend, and you have a calculator that tells you the maximum loan amount that you can ask, and the maximum monthly mortgage payment that you can make.

You can also find out how susceptible you are to changes in interest rates in the market. Enter the principal amount, interest rate variation and the Loan for Home period, and you can know how changes in the interest rate can affect your monthly expenditures. And if you're an investor, you can look at a home loan calculator that gives you the potential yield from your investment.

Depending on the amount that you can afford, or the interest rate or the term period that's best for you, you can choose from a loan provider. And if you've already availed a Loan for Home , the home loan calculator can help you determine the monthly income that's need to stay afloat and avoid a foreclosure. There are several variants of the calculator, make sure that you are in tune with the method of calculation with the loan provider.

Rather than having to make complex calculations, where you often lose track of what you were calculating in the first place, or ask for help from your finance consultant, it's best to use a home loan calculator that can do all the calculation for you. You end up saving time, and energy using these calculators that can easily perform the most complex of calculations. But choose from a good website, rather than visiting the first site that's thrown up on the search result.

[Source: http://ezinearticles.com/?Choosing-an-Online-Home-Loan-Calculator&id=6430000]

What You Should Know About Your Housing Loan

When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.

Owning a piece of land, a house or a property is a lifetime dream for every individual. Maslow's law of hierarchy indicates such a dream as well. Taking a home loan nowadays has become much simpler. Each year the budget regulations seem to lean towards the housing sector and construction sector in terms of generosity! There are many home loan providers in the market to make your dream come true. However, before you opt to take a home loan, you need to consider certain factors related to the property that you are interested in buying and also understand the features offered by a home loan provider.

Choosing Your Financial Institution When you shop for an emi calculator housing loan it’s good to research your financial institution well before opting to go with them. Remember that when you take up a housing loan, you will be dealing with the lending institution you choose on a regular basis for a long period of time. Therefore, you should also consider factors other than just interest rates. Some of these are: How professional is the financial institution in dealing with customers? Does it offer quality service in terms of efficiency and reliability? What are the available loan packages and which package suits you best? What are the various charges involved?

Assessing your loan repayment capacity You should ensure that your monthly emi calculator housing loan instalment repayment (EMI) should not be more than around 40-50% of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your loan tenure or (if you so choose) your monthly repayment may increase substantially when interest rates go up.

When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the emi calculator housing loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.

Article source: http://ezinearticles.com/?What-You-Should-Know-About-Your-Housing-Loan&id=5919488

What are registration charges?

Owning a home is a dream come true for many individuals. It is the culmination of much efforts and time. Getting across the gauntlet that is securing the appropriate financial measures is only the beginning in what is often a long and arduous process before you finally get to own your home for good.

Owning a property is so much more than simply taking possession of your dream house

 There are a huge number of legal hassles and tedious documentation to get through before you can undoubtedly own your property. You need to have a clear title and other relevant documents of ownership that affirm your ownership of the property.

In the final stages of the paperwork, you need to pay stamp duty and relevant registration charges before you are handed over your documents. With these final hurdles cleared, you are now free to enjoy your home to the fullest extent possible.

Stamp duty is one of those insidious charges that tend to sneak up on you and not make itself known until the last minute. Stamp duty is a kind of compulsory fee payable to the state government. There is a time period within which stamp duty must be paid in full before you can take ownership of your home. The actual rate differs from state to state but usually varies between 5 to 7% of the registration value and not market value (also called transaction value). Until this fee is paid in full, the house will not be transferred to your name and you will be, in all effect, an illegal occupant in the property in the eyes of the government. The stamp duty serves as the charge to maintain your name as the owner of your property in the official records of the government. It also ensures that all government sources and documents reflect you as the proper owner of the property.

After stamp duty has been paid, you need to register your property within four months. This requires payment of an additional registration fee over and above the stamp duty that you have already paid. Registration fee is the charge required to actually register the property in your name and make any transfers from the previous owner (if any). Although these charges vary from state to state, the registration fee is typically 1% of the market value, usually subject to a pre-set maximum. The registration process is typically a painless one that involves you providing documents of personal identification such as copies of photo ID, various other verification documents, and the proof of payment of stamp duty.

While these charges can add up to a huge number, there are some ways to save a bit of money here. Many states offer a lower rate of stamp duty if the property is registered in the name of a female. Also, you can claim a tax deduction on the amount you pay on stamp duty and registration fee. You can also save emi for home loan tax by agreeing to a purchase price that is close to the base price published by the government.

Source: http://homeloanemicalculator.tumblr.com/post/147944128055/what-are-registration-charges

How EMI is calculated!!

I decided to purchase a house in Bangalore (an extremely tough task) and the first thing that struck me is equated monthly installment or EMI. This is the single most important parameter while taking any kind of loan. This is the amount outgo every month from your personal finances which will cover both the principle as well as interest.

I talked to few people and everyone is bit confused on how EMI is calculated. It is really simple and just few steps would enable you to calculate EMI at your end.

So here is a rather simply formula for calculating EMI.

You would wonder why EMI is called "equated", the reason is that EMI is nothing but loan amount plus total interest divided by loan tenure. If that is the case then why this complicated formula. The reason is because as you keep paying EMI, some portion of EMI goes as interest but some portion goes as principal repayment. So if you pay an EMI of Rs10,000 for a house loan, not the entire Rs 10,000 would go as interest payment, but some portion goes as principal repayment, which essentially reduces the principal on which further interest is calculated. It is extremely important to understand what goes for interest and what goes for principal repayment.

It is very clear (for mathematically inclined) that when Loan Amount goes up, so does the EMI. Similarly if the interest goes up again so does the EMI, but if 'n' (loan tenure) goes up, EMI reduces. A note of caution, a low EMI for longer period does not necessary means a good bargain. A good bargain depends on your requirements as well as the total interest you pay over the entire loan tenure.

Another thing to keep in mind is whether the reduction in loan amount happens on monthly basis or yearly basis. Any loan which reduces the principal on monthly basis should be given preference. A monthly reduction implies less interest payment from next month onwards, definitely a huge savings.

Also usually interest rates come in flavors of fixed and floating rates. A floating rate changes based on market's prime lending rate (PLR). A fixed rate stays fixed for the tenure of the loan. For a longer period of loan, my personal preference is always fixed interest rate, even if it is 1-2% higher, at least the monthly outgo is fixed, so planning of your outflows can be planned pretty well. I personally think that similar to rupee averaging for mutual funds, the floating rate almost remains same as fixed rate over a long tenure of home loan interest calculation. [The floating rate will go up and down and hence your monthly outgo]. And for short tenure loan, in a high interest regime, go for floating rate, but in a low interest regime choose fixed rate.

Source: http://www.articles.howto-tips.com/HowTo-Article-Directory/how-emi-calculated