Documents Needed for Home loan emi calculator

As you have made up a mind to take a home to loan buy your dream house. In today's internet world you start searching on net for best offer. Search engines will take you to the different banks and financial institution websites, which provide home loans. You should also visit websites which offer advices on home loans. From there you get the idea about best interest rates, and other important information related home loan.

After doing all the research about all the factors you apply for a home loan. But most important requirement to get Home loan emi calculator is the documentation which is quite tough. In case you miss out any crucial document your home loan approval will get delayed or may be your application will be rejected.

The first thing is the filling of application form and signing it. Then go through the official site of the bank thoroughly to get information about the mandatory documents needed for applicants. The main documents required for home loan are Proof of age Proof of identity - passport, PAN card, ration card, voter ID card etc.

Banks and financial institutions have specified documents according to the applicant's category, purpose of loan, tenure, amount, etc. From the documentation column you can check the list of documents as per your category.

Salaried applicants

Salaried persons are required to submit salary slip of last three months showing all deductions along with current salary certificate, proof of continuity in job for last two years - either appointment and relieving letters or Form 16 for two years. Bank statement or pass book where salary has been credited for last six months, copy of appointment letter if employed for less than a year in current job, company profile for employees of a private limited company.

Documents related to Property

Khata certificate Latest property tax paid receipt EC for last 13 years, parent documents and all link documents for 13 years, approved plan receipts towards payments already made, in case of an old flat or house you are going to purchase - its sale agreement and title documents in favour of the seller, if you are buying a newly constructed flat then sale agreement or construction agreement with builder, total cost break-up on builder's letterhead (in case of new flat).

To get refinance

In case of getting refinance you have to submit details of previous Home loan emi calculator availed outstanding loan balance letter with foreclosure charges Letter of acknowledgment for deposit of title deeds.

Documents for self - employed

Self employed persons have to submit additional documents to get home loan. These are profile of business on the letterhead of the company, proof of IT returns for last three years, computation of income certified by a chartered accountant along with profit and loss account and balance sheets for three years, business and personal account bank statement for last one year and copy of professional certificate in case of a professional.

One thing to take care of is marginal money since banks calculate percentage according to your income and moreover banks only lend 85 to 90 percent of the loan amount.

Usually the banks ensure that monthly repayments do not cross 40 percent of your take home salary. While scrutinizing the documents bank finds applicant has a poor repayment track record and have sufficient default record on previous debts, then there are very bleak chances of getting home loan.

Article Source: http://EzineArticles.com/1356474

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]

Loan Guide - Tips to Help You, Before Availing a Loan

For a given quality of a product, we want to purchase it at the lowest rate. Remember - loan is also a product and obviously we will like that we get it at the lowest possible cost. Therefore, before availing a loan, a little vigilance can save you many dollars.

So if you are planning to avail a Home Loan, Student Loan or Study Loan, Mortgage Loan, Home Equity Loan, Pay Day Loan, Vehicle Loan or Conveyance Loan etc., here are certain vital tips for you.

THE COST OF A LOAN CONSISTS OF TWO PARTS:

(A) HIDDEN COSTS

(B) INTEREST COST

A) HIDDEN COSTS:

These are the costs about which the representatives of the banks/finance companies are generally silent at the time of selling their product (i.e. loan). But these costs are very much written in the finger prints of the contract you sign with lender. So, it is wise to go through the entire content of documents you are going to sign for availing a loan. Believe me, there will be many points on which you will like to have clarifications from the lenders.

HIDDEN COST CONSISTS OF THE FOLLOWING THINGS:

1. UPFRONT INSTALMENTS:

Some finance companies take certain installments on the first day of the disbursal of the loan. Suppose you have availed a loan of $10,000 and your EMI (Equated Monthly Installment) has been fixed at $410 per month. Now the lender wants you to deposit, say 5 installments in advance. It means you will deposit $2,050 as upfront installments. In this case the finance company has financed you actually $7,950 ($10,000 - $2,050) but the amount of loan on which you are paying interest will be $10,000. The principal amount from your angle is $7,950 but the lender is charging interest on $10,000. So negotiate with the company for not paying any upfront installments.

2. PROCESSING FEE:

Processing fee is the fee charged from the borrower for preparation of documents. Processing fee is generally negotiable and certain companies waive off the entire fee on negotiation. The companies generally reduce the fee if do not waive off the entire fee. So try your best to negotiate on this front before agreeing to avail the loan. It will save you handsome money.

3. CHECK BOUNCING CHARGES/LATE EMI CHARGES:

Through the Property Loan Emi Calculator If you are not able to pay the monthly installment on time or the checks given by you for repayment of the loan have bounced due to certain reason, the lender will charge a penalty from you. Different companies charge different penalty in such cases. Check out with the competing companies and fix this condition accordingly. If not settled before hand, you will have to shell out as per the terms written in the contract which may be exorbitantly high.

4. FORECLOSURE PENALTY:

Foreclosure means paying back the entire loan before the agreed period. Suppose you have availed a loan and undergone an agreement with the lender to pay off the entire money in 24 equal monthly installments. After 10 months you have got some money from somewhere and now you want to pay off the entire loan to the lender. This is a case of foreclosure. The lender will charge certain percentage on the remaining principal. This is called foreclosure penalty. Certain lenders don't let to pay off the entire money before a fixed period, say you will not be allowed to opt for foreclosure during first 6 months and after that you may pay off the loan that too with foreclosure penalty. The foreclosure clause should be clearly understood and settled with the finance company well in advance. After reviewing your financial credibility, the financer can alter/delete this clause to your benefit. So, do negotiate on this point.

INTEREST COST:

Interest cost is the main cost of the loan availed. Here are given some finer points to be learned about the interest rate component.

INTEREST RATE IS OF TWO TYPES

1. FLAT INTEREST RATE

2. MONTHLY REDUCING INTEREST RATE

1. FLAT INTEREST RATE:-

"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.

Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.

[Source: http://ezinearticles.com/?Loan-Guide---Tips-To-Help-You,-Before-Availing-A-Loan&id=217268]

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]

Property loan interest rate Advice for Loan Applicants

Upon deciding on applying for a mortgage loan it is important that you be aware of the housing loan interest rate that you will be required to pay during the term of the loan. There are times when buyers get too excited about the idea of purchasing their own home that they tend to overlook the interest rate incorporated into the loan. They only begin to notice this after a few years of paying their mortgage, and by this time the rates may be too high, especially if the loan has a variable interest rate. If you are faced with such a situation it is best that you call your mortgage provider and have the contract explained to you in detail. If you feel that it is too high, your loan manager may present you with other options such as refinancing in order to be able to save on your mortgage payments.

It is also important that you understand the principles of mortgage rates or interest percentages before you decide to apply for a mortgage loan with a certain bank. A loan manager will present you with four Property loan interest rate packages to choose from: SIBOR, SOR, fixed interest rate, and variable rate. There are many other interest rate packages that may be offered by banks, however, these four are the most popular among property shoppers. The Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) pegged mortgage interest rates both fluctuate according to the changes in the international market. SOR pegged interest rates tend to fluctuate more because it reacts to the ever changing foreign currency exchange rates. For this reason, SIBOR is deemed as more stable as compared to SOR. However, there are instances when SOR pegged mortgage rates can suddenly drop without any warning and can be even lower than SIBOR pegged rates.

A fixed Property loan interest rate is another popular choice by those who are shopping for mortgage loans because it is not affected by economic changes in the world market. Those who choose this mortgage rate package will continue to pay a fixed rate of interest regardless of how the world market is doing for the duration of the mortgage loan.

The principles of a variable housing loan rates for interest are a little harder to understand because it varies from bank to bank. You may find banks that offer lower variable interest rates than others, while some charge higher than usual. This is because variable rates of interest depend on a lot of factors, including your credit background, your ability to pay, and your standing as a Singapore citizen. It is important that you thoroughly understand the computation before you agree to the terms so as to avoid paying more than what you can afford.

To get a mortgage rate that is most suitable for your financial situation, make sure that you thoroughly research about the current mortgage rates in the market before you start doing your mortgage loan shopping. Patience and determination are also very important because running in and out of banks to meet with housing loan managers can be a tiring and time consuming task. Everything becomes worthwhile however when you are able to land a housing loan rate package that is right for you.

Article Source: http://blogs.rediff.com/homeloanemicalculator/2016/08/25/property-loan-interest-rate-advice-for-loan-applicants/

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

How to Get Lowest Interest Rates on Your Home Mortgage

Though selling and buying properties is very ordinary, at least for those who are in realty sector, it is still a tedious and time consuming process. This happens especially if you decide to do it on your own. It is good if you have made up your mind to buy a home for your family and are ready to apply for a home mortgage in a bank. Before you do so, there are some important points to consider. It is true that getting a home loan today is much easier in comparison to what the situation was a few decades ago, it is still a once in a lifetime decision as you do not buy a property every few years, do you? It is therefore necessary to do your homework before taking a plunge.

First of all, it is imperative to know the interest rates prevailing in the home mortgage sector. Then, depending upon your requirements, you can easily calculate the EMI that you have to pay to the bank that grants a home loan to you. Now, this interest rate is dependent upon many factors, most importantly upon your credit score.

If you have a decent score, you can even negotiate with the bank to lower the interest rate in your case. However, if you have a low score, do not make a mistake of presenting your home loan application to any bank manager. This is because loan advance managers judge your credit worthiness solely on the basis of your credit score. If your loan application is rejected several times, it becomes progressively difficult for you to secure a home mortgage. This is where experienced brokers working in the field of home loans come into play.

You could actually find that there are dozens of companies working in the field of home loans and refinance. Remember, you are important to them as much as they are to you. Thus, it makes sense to compare the features of the service that these companies are providing. No, you do not need to go physically to the offices of each company. Instead, you can compare the companies from your own home by logging on to the websites of these companies. Just type the amount of money you need and the Emi Calculator Home Loan that you can realistically pay to the lender. Depending young your details, you can get the rates of interest at which these companies can get you home mortgage.

The biggest advantage that these companies have is that they can match your requirements with the best available home loan product in the market. This is something that you cannot hope to achieve on your own. You not only save a huge amount of money in terms of lower rates of interest, you also save on your valuable time and effort. Just make sure that there is no fine print behind the attractive features of the company whose services you are hiring to secure your home mortgage.

[Source: http://ezinearticles.com/?How-to-Get-Lowest-Interest-Rates-on-Your-Home-Mortgage&id=6156792]