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Best Home Loan Rates - Steps to Secure the Best Mortgage Rate

Are you looking to purchase a new home? Maybe you are wondering if refinancing your current mortgage is a good idea. If so, you will want to do your homework to make sure you are getting the best rate you can for your situation. There are various factors that play into the lenders decision on whether they will make you a loan and what rate they are willing to give you.

Your Credit Score

If you don't know what your credit score is, you will want to find out. There are online services where you can find out what your credit score is. The better your credit score, the better chance you have of getting a Best home loan rate. If your credit score is not where it needs to be to get the loan or to get a good rate, you may want to do some credits repair prior to getting your Best home loan. There are many credit repair companies that can guide you as to what how you can best clean up your credit and raise your credit score.

Income

The lender is going to want to verify that your income is sufficient to make the monthly payment. They will look at your sources of income as well as how long you have been getting the income to decide if they can rely on that income for the loan payment. If you are self employed, they will be looking for a longer track record than if you are employed and receive a pay check. The information the lender will want to see includes: tax returns, pay stubs, bank statements

Debts and Obligations

The lender will look at what your current debts and obligations are. They want to verify that with the income you have coming in, you can comfortably afford their payment on top of the other debts. You will want to clean up any small debts or collection accounts prior to applying for your loan. This will help your debt ratio as well as your credit.

Once you have put your information together for the above areas, you can shop around to see you can give you the Best home loan rate for your situation. There are companies who specialize in taking your application and placing with the right lender who can best service you. This can be a very good way to go because you don't want to get too many lenders pulling your credit as this can lower your credit score and ultimately hurt the rate that you qualify for on your home loan.

Article Source: http://EzineArticles.com/4705911

Home loan without itr

Home Loan Interest Rates - The Basics

Applying for your first home loan is a big financial step. Depending on the type of mortgage you obtain, the Housing loan interest rate you secure and the length of your mortgage, you can drastically affect the total amount you pay by the time you make that final house payment at the end of the loan term.

In this article we'll cover the basics of mortgage characteristics and then go deeper into mortgage interest rates to cover how they affect your mortgage and total cost of borrowing.

There are four factors that can affect the characteristics of your mortgage - they are:

1. Interest. The interest rate is basically the percentage of the loan that your lender charges you to borrow money from them. Your interest rate, whether varied or fixed, will affect your cost of borrowing. Essentially, a higher interest rate equals a higher monthly and overall cost.

2. Terms. Most mortgages have a maximum term that typically hovers anywhere between 15-30 years. It can be shorter or longer, but that's the standard for most home buyers.

3. Payment frequency. How much and how often you pay will affect your mortgage costs. Some homeowners opt for weekly payments because they can squeeze in one or two extra payments a year, thus reducing the length of their mortgage.

4. Prepayment options. Some mortgages allow you to pay off your mortgage early, while others restrict prepayment or put a penalty on early payment.

Of all these, interest is typically the most important. Depending on your mortgage, your interest rate can fluctuate with the market (variable or floating rate) or it can remain the same for the duration of the loan (fixed rate).

A fixed rate mortgage retains the same Housing loan interest throughout the course of the loan. Homeowners benefit because they're given a fixed monthly payment that they can effectively budget for and it won't change with the market. However, because the interest rate risk is placed on the lender, fixed rate mortgages tend to have a slightly higher interest rate.

A variable rate or floating mortgage changes its Housing loan interest depending on the economic index and federal interest rates. While borrowers will typically get a lower opening interest rate, they're subject to the tides of the market. Overall, variable rate mortgages tend to be cheaper than fixed rate loans, but homeowners need to remember that they are at the mercy of the market.

Housing loan interest rates aren't the same for everyone, meaning you may not get the same rate as your neighbour. Lending institutions base their rates on the borrower's credit score, meaning a higher score typically translates to a better rate. Before you commit to any interest rate, always shop around and don't be afraid to negotiate with a lender for a better rate.

Article Source: http://EzineArticles.com/1025632

Home loans in India

Home loan offers

The Varieties of Home Loans Offered to Homeowners and Home Buyers

You'll find genuinely not as quite a few home loan items out there for current home owners or those seeking to purchase a home with a mortgage as folks believe you'll find. Basically you will find two forms of loans: fixed rate and adjustable rate. Fixed rate mortgages are nearly continually for 30 year amortization terms (360 months) with equal payments every month for the whole term. Homeowners or home buyers can also get 15 year terms, and in some cases 40 year terms. Adjustable rate mortgages (ARMs) arrive in far more flavours. You are able to get a pure monthly adjustable or yearly adjustable mortgage, or you'll be able to get a fixed rate for a particular number of years after which the loan goes adjustable.

Let's examine adjustable rate mortgages very first. These are one of the most prevalent sorts of home loans accessible nowadays since they may be typically one of the most inexpensive for home buyers and arrive with the lowest rates. Adjustable rate Home loan offers are exactly what the title implies, that is certainly, adjustable. The curiosity rate that determines the quantity of awareness that the borrower pays over time adjusts, generally on a monthly basis.

The curiosity rate of the loan is tied to an "index". You will discover many indexes which are utilised by banks and lending institutions to determine the awareness rates they provide to buyers. Indexes vary wildly and you must examine the performance history of the index rate which is being tied to your loan very carefully or else you might be getting into a loan that could adjust larger really rapidly. The genuine awareness rate that may be given to the borrower can be a "spread" from the genuine index quantity. For example if the index is at 3% and also the distribute is 3%, then the borrower's real awareness rate is 6%.

An critical thing to keep in mind about these forms of home loans is that even if the broker tells you that this is really a "No Fee" loan, these are producing money off the distribute. The larger the distribute, the greater the rebate, or "yield distribute premium" that the lending institution or bank pays the broker. Most of the time the broker has to disclose the volume of the yield distribute premium that they're obtaining from the bank, but not constantly. You will find loopholes. The best way is to ask them directly how much they may be producing on your loan and then try and negotiate it down. The broker has to make some money, but they must not get rich off of your deal.

All of these forms of Home loan offers have a "cap" which the loan cannot be adjusted better than. For example, if a loan has a cap of.25% monthly, as well as the starting rate is 5%, and then no matter what the index does, the adjusted rate the following month can't be greater than 5.25%. Most ARMs have yearly caps too. Consumers have to verify these caps very carefully and insist on the lowest ones.

Article Source: http://EzineArticles.com/4163208

Housing loan interest

How to obtain a home loan without itr Financial Statements?

Decoding Low Doc Home Loans

Low doc home loans (also known as low documentation loans) are a very flexible lending solution for self-employed people, property investors, people who do not work regular jobs or for new families who have just moved to the country. This loan type has taken off in recent years to assist people who have been rejected by mainstream lenders/credit providers.

Suitability of the home loan without itr Package

Low doc home loans have allowed thousands of home buyers to access a home loan. This loan is specifically suitable for people who have assets as well as income, but cannot provide adequate financial statement or tax return as documented evidence of income. Here is a list of people who are suitable for the loan:

>> Self-employed people who may only pay themselves a standard wage and run their business in a way that means they fall into a lower tax bracket to avoid income tax

>> Property investors who may have varied income from month to month and from year to year

>> Contractors and seasoned workers who don't work regular jobs, and

>> New families who have just moved to the country and may not have pay-slips or tax returns from the work they have been doing since they arrived

Income Verification Process

A low doc home loan enables you to self-certify your income, where you state your income (what you make) on a "Declaration" document and, the lender/credit provider will NOT verify your income by using masses of documentation otherwise required such as tax returns, BAS statements and more.

Restrictions

The conditions for low doc home loans are more restrictive than standard residential loans as they provide a higher level of risk to the lender/credit provider, for example:

>> You cannot borrow more than 80% of the value of the security property, and

>> Any low doc home loan with a loan-to-value ratio (LVR) higher than 60% will incur a lenders mortgage insurance (LMI) premium

Factors Considered by Lenders/Credit Providers when determining the home loan without itr Interest Rate for Low Doc Home Loans

Here is a list of factors that lenders/credit providers consider when determining the interest rates:

>> At least 20% deposit (you do not have to show evidence of savings)

>> Nature of and the security property type

>> Client credit history

>> Loan size amount

>> Aggregate of total exposure to the lender/credit provider

>> If self-employed, the period the client has been in business

>> Age of borrowers, and

>> The purpose of seeking finance

Seek Expert and Professional Advice

Before you start the process of obtaining loans on your own, you should first seek the expert assistance of a professionally qualified finance broker who specialises in home loan without itr. Having a specialist finance broker on your side will save you lots of time and heartache. The finance broker will negotiate on your behalf with specialised lenders/credit providers to secure your eligibility for the loan not to mention get you the best deal.

Article Source: http://EzineArticles.com/8752049

How to Get the Best Home Loan for Your Needs

Location, school ratings, number of bedrooms, outdoor spaces. These are the things potential homeowners focus on when they start house hunting. They’re all important factors, for sure. Even more crucial: How will you pay for your home?

Best Home Loan is not a one-size-fits-all proposition. They differ based on their type, such as fixed or adjustable rate, and their loan term. Loans also vary in interest rate and annual percentage rate (APR).

To ensure you’re getting the best home loan for your situation, you’ll want to do your homework, talk to reputable credit counselors and lenders and follow these tips:

Fixed or adjustable?

There are two main types of mortgages: fixed rate and adjustable rate.

Most homeowners today opt for fixed-rate mortgages. With a fixed-rate mortgage, you are locked in to a set interest rate, resulting in monthly mortgage payments that remain the same for the entire term of the loan. The No. 1 benefit of this type of mortgage is inflation protection. If mortgage rates go up, your rate will not follow suit. Conversely, if rates drop, your interest rate will not drop. (Of course, you could refinance your mortgage if rates dropped significantly.)

Most lenders offer 15- and 30-year fixed mortgages, and some also offer 20-year terms. The longer the term of your fixed mortgage, the lower your monthly payment because you’re paying over many years. With a 30-year term, however, you will end up paying more interest over time.

A 15-year fixed mortgage will have a higher monthly payment because you’re paying for fewer years. On the other hand, you’re building equity at a faster rate and will pay less interest over the life of your loan. The shorter the term of your loan, the lower your interest rate will likely be.

An adjustable-rate mortgage (ARM) is a loan with an interest rate that will change over the life of the loan. ARMs have adjustment periods that determine how often their interest rates can change and they have initial “fixed” periods during which their interest rates won’t change at all — most often 3, 5 or 7 years. After this period, rates can readjust. These loans are often considered riskier because the interest rate and payments can increase when the loan adjusts. However, if you’re planning to live in your home for a shorter period of time, these loans may make sense for you, especially because you’re likely to obtain a lower interest rate than with a fixed mortgage.

Clear up your finances and credit rating

Even before you start shopping for a mortgage, you need to take a good, honest look at your finances Opens a New Window. . Most financial experts agree that your mortgage payment — including taxes and insurance — should not exceed 30 percent of your take-home pay. Yes, you may get a raise down the road — or you may not. Your mortgage payment should correspond with your current financial reality.

You’ll also want to check your credit rating. Why? Because your credit rating may be the most important piece of financial information you have to obtain a mortgage at the best possible interest rate. Checking your credit rating before you find your ideal home will give you time to correct reporting errors and to clean up less-than-spectacular ratings. It can take up to 90 days to get erroneous information off your report, so don’t delay.

Shop for several quotes

Best Home Loan is available from commercial banks, mortgage companies, thrift institutions and credit unions. You’ll want to get quotes from several different lenders to make sure you’re getting the best price. If you don’t want to shop for loans yourself, you may decide to work through a mortgage broker. Rather than lending money directly, brokers find lenders for clients. Working through a broker may give you access to an even broader selection of loan products and terms. Brokers are not obligated to find the best deal for you unless they have a contract with you and are working as your agent. Consequently, if you go the broker route, you’ll want to talk with several, just as you should with banks or credit unions.

Get ratings and reviews

After you’ve narrowed down the list of lenders or brokers you’re interested in working with, you should check into their backgrounds. How long have they been in business? If found online, are they accessible? Can they provide third-party reviews and ratings? This unbiased feedback from people who have worked directly with the lenders can prove invaluable when separating the great from the not-so-good.

http://www.foxbusiness.com/features/2014/03/21/how-to-get-best-home-loan-for-your-needs.html

Home loans: Think beyond interest rates

With banks and financial institutes announcing a slew of facilities, availing home loan has become an easier process. But the task of choosing a home loan lender isn’t as simple. What are the most important points and aspirant buyer should never lose sight of when it comes to housing finance?

Owning a home is an aspiration that pushes many. After calculating the needs and figuring out the wants, the next step for any home buyer is surveying for a housing finance. It is important that the buyer factors in several key aspects and not just rate of interest. After all housing loans are long-term commitments and relationships.

So what is it that a consumer needs to evaluate in addition to the troika - Home loan interest rates, tenure and fees?

Fixed or floating – Liberty to choose any

Touted as the interest scheme that provides complete peace of mind, fixed rate offers protection from macro-economic volatilities to the loan customers. If you wish to play it safe and security being your foremost concern, consumers may opt for fixed rate option.

On the other hand, most floating rates, though generally cheaper at entry level, are prone to change many times during the loan tenure. But if interest rates remain static or are on a downward trend, then consumer could save money in Home loan interest rates. One should look at the overall rate movement scenario in last few years to decide upon the lender.

In case of escalation of costs, lender should offer options like loan enhancement on the same property to help sail through tough times. Same goes for extended home loan tenure. An institute of repute should have an option to extended tenure to 30 years. It would reduce monthly EMIs and definitely lighten overall burden.

Home loan interest rates is about freedom, not limits. Consumers should insist on a repayment clause that let them repay as many times as they want.

Hallmark of an institute – Need based customization

Consumer should make sure that the bank or institution is flexible enough in working out maximum loan eligibility, and offer customized EMI options, choice to switch over from Fixed Rate to Floating Rate and vice versa.

Customer convenience to the Fore

Often it is the working professionals that are shopping for home loans. They are enticed by freebies but what they need from a lending institution are convenience features like instant online loan approvals, doorstep services, dedicated relationship managers and excellent post disbursement services via online customer portal. Only an institute or bank of repute can offer them this. It’s vital that consumer lays emphasis on such critical factors before signing on a loan agreement

http://www.business-standard.com/content/specials/home-loans-think-beyond-interest-rates-116092101022_1.html

Searching For the Best Home Loan - The Importance of Home Inspections

Buying a house is a complicated business even in the best circumstances. There are so many things to do, so much research, planning, and evaluating your financial ability. One of the tasks that is essential to getting the best home loan is the home inspection. Honestly, you would not want to finalize the purchase of a home to discover a load of hidden problems that could end up costing you. It makes more sense to get all of your inspections and reports completed before buying.

Building Inspection

When you get a building inspection you can learn a lot about the structural integrity of a house, uncover its weaknesses. While minor points may be overlooked, it is worth it to reveal the major problems. Bear in mind, with an older home, some lesser issues should be expected. Make sure that you hire a certified inspector to examine the best home loan from top to bottom. In open inspections you may not need to pay anything or you could be sharing the costs of the inspector with other buyers.

Pest Inspection

At the same time, you have a building inspector in the property, it is wise to have someone inside to determine whether the building is presently, or has been, infested with insects such as termites. You should also find out if there has been any treatment in the past. The inspector should be able to tell you how likely it is that there will be future infestations. Note: Many building inspectors will also perform pest inspection at the same time they are examining the structure.

Strata Report

Another document, the strata report, is often a part of certain property purchases. These strata reports typically consist of financial statements, as well as the minutes of meets. The point of these reports is to evaluate the propriety of the strata corporation's operations. In these instances, you will not have to search for an inspector. Most of the time, your solicitor or conveyancer should have some options.

Don't Make a Hasty Commitment

It is common for homebuyers to commit to the purchase immediately without taking the opportunity to discuss the issue with your conveyancer. He or she will do what they can to ensure that the property is sound. Just try to slow down. There is no reason to get in such a hurry that you make hasty decisions about buying a place before you get it evaluated. The building and pest inspections should be a crucial part of your home buying experience. In fact, it can make or break it, depending on any costs that come up as a result of not getting one done.

Why would you want to risk that? Getting an inspection is more than a financial inconvenience. It can be a matter of personal safety. You obviously want to keep the house-buying experience as smooth as possible.

Article Source: http://EzineArticles.com/6106848

Buying a Home? Do it With Free Housing Loans

The old saying "A home is built of hearts and a house is built of bricks", it is very true. Each person should have a home, a dream home, a place to return to after a hectic and busy day. It is a place which lightens your mind, frees you from all sorts of worries and gives you a sense of belonging. Whether you buy a home with your own funds or you buy it with home buyer loans, all this holds equally true.

There are various private agencies ready to fund your dream home and also government giving you a helping hand through free Housing loan. The US government has decided to offer Housing loan in order to improve the standard of living of citizens in general and also to help homeless people as shelter is one of the basic needs. People can apply for free housing loans in many ways; mortgage is one of the oldest methods of taking a loan. It is just giving a security to the money lender to claim the debt amount in case the borrower fails or refuses to repay the loan.

Choosing a Housing loan is one of the difficult tasks in this economy, but things are made easy with free housing loans. Before applying for a loan it is necessary that have a plan of the total money you are going to spend on this venture. It is necessary that you stick to this plan and budget. Free housing loans provide the borrower a sense of relief and of course, a roof over his head!

The present government in the US is focusing on creating awareness among people about the free Housing loan, Home Buyer Loans and grants. But prospective first- time home owners should beware of scamsters in their midst claiming to be government agents and asking you to sign on documents pertaining to your assets.

The government also provides counselors who come a guide you through the process of acquiring a free housing loan.

Article Source: http://EzineArticles.com/4249083

Should you invest your money or use it to prepay home loan?

If you have an outstanding home loan, and happen to have just received an annual bonus or any other lump sum payment, should you use it to prepay your loan? Or, should you invest it to meet some other goals? Assess the following conditions to arrive at the right decision.

The first variable to be considered is psyche: some people may not be comfortable with a large housing loan and to reduce their stress they may want to get rid of the loan burden at the earliest. For them, settling the question of how to use their bonus is simple: just pay off the loan. You should pay off the home loan at the earliest. Several unfortunate happenings— job loss, death of the earning member, serious illness, etc—can cause trouble during the 10-15 year loan period. Treat it as a mind game and not a numbers game."

Tax benefit is the next variable. If a home loan does not seem like the sword of Damocles hanging over your head, it makes sense to continue with the regular EMI schedule. This is because of the tax benefits that a home loan offers. The principal component of the EMI is treated as investment under Section 80C. The interest component is also deducted from your taxable income under Section 24. The annual deduction in respect of the interest component of a housing loan, for a self-occupied house, is limited to Rs 2 lakh per annum.

You won't be able to claim deduction on interest paid above Rs 2 lakh. So, if your annual interest outgo is higher than Rs 2 lakh, it makes sense to prepay the Home Loans in India, and save on future interest payment. For example,

The annual interest on a Rs 70 lakh outstanding loan, at 9.5%, comes out to be Rs 6.65 lakh. After taking into account the Rs 2 lakh deduction under Section 24C, the interest component will fall to Rs 4.65 lakh, and bring down the effective cost of interest from 9.5% to 8.64%, even for the people in the 30% tax bracket.

You can, however, optimize the tax benefits if the loan has been taken jointly, say, with your spouse.

[Source: http://economictimes.indiatimes.com/wealth/plan/should-you-invest-your-money-or-use-it-to-prepay-home-loan/articleshow/52161038.cms]

Comparing Home Loans- Significance and Importance

Home Loans as the name suggests is the loan taken for purchasing a property. The provision comes with a lot of significance and advantage approaching multiple lenders individually. The most complex situation while comparing a Home Loan in India is to choose the best one among the other options existing in the market.

Meaning

Home Loan Comparison involves a process where all type of home loans are kept under one roof so that a real comparison can be made regarding which one is better. In order to research in a short duration of time internet is the best possible option available nowadays. In order to come across various loan options available in India a detailed research and analysis is required so as to meet the desired results.

Detailed Analysis for Comparing Home Loan in India:

Comparing home loan is the very initial step that needs to be considered vitally. Any information related to variant type of Home Loans in India can be easily found from the internet. The comparison allows one to choose the best possible options prevailing in the market. Variant types of loan options available in the market includes fixed rate home loans, low rate home loans, split home loans, variable rate home loans and other professional packages. 

A detailed analysis is recommended prior to the purchase of a loan, as different financial institutes offer interest rates. A lot of concern is required prior to the purchase of a loan focusing on the factors like income of the individual, pay back capacity, interest rate offered by various banks, installment amount and so on. Provision of Home Loans Comparison provides an option to choose the loan package of your choice as per your demand and requirement.

Loan against property, the option come a blissful advantage for the borrowers. The loan makes a suitable option for all purposes providing funds on the immediate basis. Loan against property is always counted as a cheaper option providing funds for any purpose including debt consolidation, for any emergency, education, marriage or for other purposes. 

Applying for such type of loan makes a convenient option that can be easily availed by submitting a few set of documents like identity proof, residential proof, IT Returns and Bank Statements. Thus, loan against property is a more convenient and benefited option always offered at a lower rate of interest.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/comparing-home-loans-significance-importance-675272.html]

Way to your dream property through Housing loan…

Buying a house could be an exciting experience in life. You are on the top of your happiness while purchasing it. But finding the right home is more important. It needs lot of planning, spending hours or months looking for a suitable property of your choice and budget. There are lots of background checks like scrutinizing the area of living, travelling convenience, security aspects and finally scouting for the best deals on home loan. The most important part while taking Housing loan are interest rates applicable and judging the fact that your home loan does not turn to be too expensive over the duration of the loan. So, here are few tips to consider while finding the right home loan as easy as possible.

Savings

Depending upon your housing needs such as buying a new property, constructing, home extension or renovating it you are required to establish a monthly budget that will help you save enough money for your down payment. Banks or finance companies provide loan up to maximum of 80% of the agreement value of the house. Every bank or finance company has its own criteria under which you will have to show the margin money of around 15 – 20% handy before applying for loan. Therefore, make sure you have saved at least 20% of the down payment and also have little extra savings to cover a few months of your home loan payment. Recession, health risks or other perils don’t come knocking at your door so it’s better to be prepared to cover your expenses for couple of months.

Credit Score

A good credit score will put you in a position to attract the best deal on your Housing loan. It’s a good idea to obtain a copy of your credit report before starting to buy home. You will see what your credit profile looks like to potential lenders and can take steps ahead to improve your credit score if required.

Home loan EMI calculator

These are great tools for helping you understand how much loan amount you can avail, what is the interest rate applicable, processing fees associated, pre & post penalty charges applicable, etc. These tool help you stay prepared with the projected installment on your loans. They are very easy to use and can show how much your monthly mortgage payment would be under different home price, down payment and interest rate scenarios.

Prompt Co-ordination

When applied for Housing loan, it’s important to respond promptly to any request for additional information from your lender and the paperwork as quickly as possible. Waiting too long might cost more towards your housing finance. It might end up losing your finances for dream home or deposits you have made, if any.

Employment Status 

Whenever an individual has been employed in the same job or in the same type of job for atleast 2 to 3 years, it shows his or her stability, job security and continuous source of income for loan repayments. Therefore, a home loan approval is more likely. It is advisable if you’re consistent in any job for more than 2 years and simultaneously looking to buy a new house, wait until your loan gets approved before making any changes. Once you have your home loan, you can migrate to a new job.

House loan- An Answer for Your Financial Need

Are you planning to buy a home but worried about the funds then you can be relaxed as there are many banks and housing finance companies in India that can fulfil your needs. Today there are a range of lenders that cover housing needs of almost all kinds of borrowers. But to avail such a loan one needs to meet certain terms and conditions that are laid down by the lender. It helps the borrower to smoothen the approval process of a loan.

House loan can be availed for a variety of purposes ranging all the way from buying a new house to renovation of an existing one, construction of new home and for even purchasing a piece of land. These loans can also be taken for paying the stamp duty while purchasing the house. They are considered to be the best option for overcoming any financial problem that may arise at the time of purchase or other related issue.

However you should always remember that as far as the loan amount is concerned, it mainly depends on your ability and willingness to repay. Therefore a variety of documents play a vital role in determining your repayment capacity that further decides your loan amount to be sanctioned.

Usually your ability to repay is determined by your current income and the main documents that are required at the time of applying for a loan include your source of income, employment records, identity and residential proof, education qualification certificates and bank statements of past six months.

If one fails to provide these documents then it may be get difficult for him to avail a loan but the display of these documents make it easier for a borrower to avail loans at varied rates of interest charged by different companies. All lenders in the market offer different rates on their housing loans. It is always noticed that the public sector banks charge lower rate of interest as compared to the private lenders. Therefore it is always advisable to make an extensive comparison of rates offered in the market before finalizing on the deal.

In India the main source of House loan is considered to be the public sector banks but now there are ample of private housing finance companies that will extend credit under all circumstances. However there may some difference in the rates charged by both types of lenders. Public sector banks are considered to be a cheaper source in terms of both interest rates and additional charges on the loan processing but private lender may lenient in their lending norms.

Article Source: http://EzineArticles.com/1705653

Loan against Property Primer

Loan against Property represents the properly secured loan classification like home loan where the client gives a guarantee by using his property as a protection. The right of property possession is still with the client, and if he/she is unable to pay off the cash, he/she can sell the actual property to pay off the debts.

Typically Property Loan India are used to start or increase company or to modernize your house. But it can also be used to pay off current high amount loans. Also think about these suggestions before borrowing

Property Loans:

a) Choose on the basis of what you really need. Also see if the price fits into your approximated budget.

b) Compare the estimates given and attention rates from 3-4 financial institutions, select the one which provides obtain the most and provides your purpose.

c) Also determine the period of the cash. Loan against property the EMI may come less for longer period, but the total attention outgo will be higher.

d) Know all about handling charges and time. Some financial institutions may postpone the handling fee for handling loan but they build this price on their attention rates.

e) Consider pre-payment options. All financial institutions expenses 2% - 3% of the cash in case you choose to pre-pay the excellent quantity.

f) Standard in expenses results in charges. It can also negatively affect your credit rating and information. So create sure to payout your loan promptly.

h) Also before deciding upon the records, create sure you recheck all conditions.

i) Do not at any situation give any falsehoods. This may quantity to scams and could land you in trouble.

j) Do not sign any empty records. Even if it takes you a few hours to fill-up the form, please do so. Do not leave anything for the professional to fill-up.

k) Finally, once you have obtained Property Loan India do your best to pay it returning as quickly as possible. Banks create their cash off the attention they charge and the earlier you pay off credit the less cash you will have to pay in attention.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/loan-against-property-primer-1009916.html]

House Loan in India

You take a home loan for buying a house or a flat, renovation, extension and repairs to your existing house. Your bank  assesses your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, and other factors like spouse’s income, assets, liabilities, stability of income etc.

The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use.The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

Documents required for a loan approval are as follows

·         All legal documents of the house being bought

·         Identity and Residence Proof

·         Latest salary slip (authenticated by the employer and self attested for employees) and Form 16 (for business persons/ self-employed) and last 6 months bank statements / Balance Sheet, as applicable.

·         Completed application form along with your photograph.

·         Please read the fine print of the bank’s scheme carefully and seek clarifications.

Loan options by bank

Banks generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home Loans. For a Fixed Rate Loan, the rate of interest is fixed either for the entire tenure of the loan or a certain part of the tenure of the loan. In case of a pure fixed loan, the EMI due to the bank remains constant. The EMI of a floating rate housing loans changes with changes in market interest rates. If market rates increase, your repayment increases. When rates fall, your dues also fall. 

Benefits to borrowers from monthly reducing balances method

Borrowers benefit more from a loan that’s calculated on a monthly reducing basis than on an annual basis. In case of monthly resets, interest is calculated on the outstanding principal balance for that month. The principal paid is deducted from the opening principal outstanding balance to arrive at the opening principal for the next month and interest is computed on the new, reduced principal outstanding. In case of annual resets, principal paid is adjusted only at the end of the year. Hence, you continue to pay interest on a portion of the principal that has been paid back to the lender.

Tenure of loan

The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean greater EMI burden, but your loan is repaid faster. If you have a short-term cash flow mismatch, your bank may increase the tenure of the loan, and your EMI burden comes down. But longer tenures mean payment of larger interest towards the loan and make it more expensive.

Security you could have to provide

The security for a housing loan is typically a first mortgage of the property, normally by way of deposit of title deeds. Banks also sometimes ask for other collateral security as may be necessary. Some banks insist on margin / down payment (borrowers contribution to the creation of an asset) to be maintained / made also.

Collateral security assigned to your bank could be life insurance policies, the surrender value of which is set at a certain percentage to the loan amount, guarantees from solvent guarantors, pledge of shares/ securities and investments like KVP/ NSC etc. that are acceptable to your banker. Banks would also require you to ensure that the title to the property is free from any encumbrance.

Tax benefit on the loan

Resident Indians are eligible for certain tax benefits on both principal and interest components of a loan under the Income Tax Act, 1961. Under the current laws, you are entitled to an income tax rebate for interest repayment up to Rs. 1,50,000 /- per annum. Moreover, you can get added tax benefits under Section 80 C on repayment of principal amount up to Rs. 1,00,000 /- per annum.

Complaint can also be lodged by your authorized representative (other than a lawyer) or by a consumer association / forum acting on your behalf. If you are not happy with the decision of the Banking Ombudsman, you can appeal to the Appellate Authority in the Reserve Bank of India.

Source: http://priyankablogthoughts.com/house-loan-in-india/

Home Loan Interest Rates

Home loan Procedure

Owning a home is an important thing in life. It is a long cherished dream for many. These days, there is a great increase in the property prices in India. And so, buying a house in a single payment is difficult for many people. Therefore, many people go for housing loan and it makes the process of buying a home easier. Many nationalized and private banks offer housing loan. There are also some housing finance companies in India which offer Housing Loan. In India, the housing loan procedure includes few steps. It may be small process for few people, if they have all the documents required in the process. For others, it will be a long process.

Home loan Procedure in India

Choosing a Home loan

While choosing the best housing loan plan, you have to study a lot and figure out which housing loan plan fits best to your needs. Figure out your financial status in the coming few years so that you have a rough idea of your resources in the coming years and choose the housing plan that suits you.

Submission of Application Form

Once you have figured out the plan you need, you have to submit the application form to the Bank. You will also be asked to submit some relevant documents along with the application form. These documents may vary for different banks. These documents are used to make sure of your income, age, residence, employment and many more. At this stage, you have to pay processing fee for the loan to the Bank. This processing fee is non-refundable. This processing fee will be about 0.5-1% of the loan amount.

Validation of the Information:

Once you have submitted the form and the relevant documents, the bank will start to validate the information provided by you in the application form. The bank will check your residential address, your place of employment and so on. The Bank performs a number of checks to ensure that you will be able to repay the loan amount.

Issue of Sanction Letter

After these checks, the bank issues a sanction letter. This letter contains the details such as loan amount, rate of interest, monthly reducing balance, mode of repayment and general terms and conditions of the loan. This is the approval of the money lending procedure by the bank. But, the money will be sanctioned only after the documents and the property for which the loan is being granted is thoroughly verified.

Submission of Documents

Once you get the sanction letter, you have to leave the entire set of original documents of the property being purchased with the Bank as security for the loan amount sanctioned. The bank will have all these documents until you totally repay the loan. Once you give the documents to the Bank, the Bank will verify all the original documents.

Validation of Property

At this stage, the Bank conducts a site visit to your property to ensure that there are no violations in the construction. Once the Bank has confirmed that the property is legally and technically clear, and if they are satisfied with the property, they will disburse the loan amount.

Registration of Property and Signing of Agreements

At this stage, the registration of your property takes place. And now it is time for signing the final agreement of the home loan. After signing the agreement, you must hand over a bunch of Post dated cheques as agreed on the agreement paper.

Payment Procedure

After the bank ensures that financing the property involves no risk, they pay the amount that is agreed upon. At this stage, the money is given to the builder or the owner of the property. The money will be disbursed based on the construction stages of the property. The payment may be full or part based on the construction stage of the property. In case of resale or a completed project, the loan will be disbursed in a single installment. If the property is under construction, then the loan amount will be disbursed in installments depending upon the construction stages.

Article Source: http://EzineArticles.com/4853237

Best Home Loan Rate

Getting the best home loan is highly important if you are looking at moving in the near future. Getting onto the property ladder is highly advisable as soon as possible as if you are renting then essentially you is losing money that you will never get back. As soon as you get a property you are only required to pay back a loan, but the good news is that at the end of it you will have something to show for it - a property that will retain its value and that will prevent you from ever needing to spend money on rent again.

The difficulty is of course in affording this and it can be hard to get onto the property ladder when all the properties available are so very expensive. You shouldn't just rush into a loan though, take your time and shop around and you will be able to find one that is suited to you and that gets you the best possible deal. Here we will look at how to get the best home loan rate.

The first secret to getting the best home loan rate is to start looking early and to leave lots of time to look around and compare quotes. Look online and call up various loan companies and tell them your details so that you can compare what's on offer and make an informed decision. While one company might offer the best home loan rates for one person, another might be better for you as the rates will be based somewhat on your circumstances - your credit rating for instance etc.

Another tip is to make sure that you make sure you have the best possible credit rating. This credit rating is partly what will be used to decide how much your loan will cost and this will look at your previous debts etc and ascertain whether you are a safe bet or whether you are likely to struggle to pay back the loan. The more confident they are that you will be able to pay back what you owe, the cheaper rate they will offer you.

To increase your credit rating you need to be able to demonstrate that you are able to pay back loans. The first and best way to achieve this is by quickly paying of all existing loans that you owe. This means paying off any credit card debt, any overdrafts and any car loans as quickly as possible. If you can't do this, then something else that can help is to get loan consolidation. Here you take out one larger loan and use it to pay off all of the smaller loans you owe. This then looks to the lenders as though you have paid back lots of debts and so it can on occasion improve your credit rating.

If you have no loans to pay off, then use a credit card in order to take out small loans each month and then reliably pay them back on time to demonstrate your ability to manage your money. This is another good reason to leave yourself some time before taking out the loan as this process can take a little while.

Article Source: http://EzineArticles.com/6690389

Home Loan Checklist Questions and How to Prepare Yourself When Getting a Home Loan

If you are looking to get a home loan, don't get confused with all the "jargons" used within the finance industry. Prepare for your home loan with the checklist of typical questions asked by the lending officers employed by the lenders/credit providers. This checklist is useful when you are looking to:

>> Buy your first home

>> Refinance your existing mortgage

>> Consolidate your debts

>> Upgrade or renovate your home, or

>> Invest in another property

Question - What is the purpose of the credit you are considering?

Your response should be anyone of the following:

>> Purchasing a home to live in

>> Investing in another property

>> Renovating your home

>> Consolidating your debts, or

>> Refinancing your existing mortgage or any other needs

Question - What kind of loan repayment type are you considering?

You should consider your loan repayment options, such as:

Interest-Only repayments - You will only repay the interest on your home loan, and your loan balance will not reduce

Principal and Interest - You will have to repay the interest and principal amount together. It means your loan balance will gradually reduce.

Question - What kind of interest type are you considering?

You need to consider the interest rate type in terms of:

A Fixed Rate home loan - With this type of home loan, your interest rate is set for a fixed period, and your repayments remain the same for the duration of the fixed period, usually between one and five years, or

A Variable Interest Rate home loan - This type of home loan is very popular with first-home buyers who just want a loan product that is simple, easy to manage and offers a number of features and benefits.

Question - Are you concerned with the amount of interest rate percentage being charged?

If you are concerned with the amount of interest rate percentage being charged on your home loan, you can use comparison rates because they are a handy indicator to help you compare loans more easily. An expert finance broker will readily provide you with a number of impartial comparisons to help you when deciding and which a bank aligned lending officer is not willing to provide you.

Question - Are you concerned with interest rate movements (i.e. up or down)?

If you are concerned with the interest rates moving upwards, you should consider a Combination (Split) interest rate loan because it will allow a mixture of security and flexibility. This is how you will pay:

>> A fixed interest rate payment for an agreed portion of your home loan, and

>> A variable interest rate payment on the remaining portion of the home loan.

Question - What kind of features and benefits are you considering with your home loan?

You should make sure you fully understand all the features and benefits available to you, such as:

>> Taking advantage to make unlimited "extra repayments" each month. So, you can pay off your loan faster.

>> Taking advantage of "redraw facilities", so you can withdraw any extra payments you have made on top of your normal repayment amounts, if you need the cash.

Article Source: http://EzineArticles.com/8830399

Home Equity for the Best Home Loan

If you have ever been in a situation where you are in need of funds quickly for repairs on your home, look no further than home loans. This is a great way for you to obtain the capital that you need should you have a serious problem like a leaking roof, or broken windows.

Often people will look to a bank or credit union when it comes to taking out a loan, yet a loan through a smaller market lender will yield much in the way of benefit where the bank cannot compete. For starters banks really do not offer the best rates in town, they are generally larger corporations and are looking to only get larger through capital gain. This does nothing in the way of helping you get Best home loan. Smaller market lenders that offer loans will make the money they are looking for in return on the interest rates, they are not there to gouge you.

What to Think About Before Applying For Loans

Sensibly what you really need to do first would be to determine exactly why you might need as far as home loans. From this point it will be far easier for you to figure out exactly what amount you may need to borrow from a lender. When the lender knows what your intentions are with a loan, they will then be more opt to work out a deal with you and give you a decent rate. It would also be helpful if you went to your bank and got the records for the equity in your home, this will tell the lender just how much you have invested in the property, and this in turn will allow them to get a better picture on what the amount will be for home loans. This will also play a key role in determining what exactly the interest rates will be for the loan. What would be the most important factor to consider when going for loans would be if you really could afford to pay the loan back to the lender? This is very important, as you must place the equity of your home up as collateral for the loan itself.

Equity Is Key in Best home loan

Equity can play a very large role in the determining factor of whether or not you can get the best home loans out there. By taking the portion of the home that is already paid for, that being the equity you can use this to get the best loan. The more equity you have, meaning the more you have paid off on the home chances are the better the offer you will get for the best loan on the market. If you have already paid off your home, you will have 100% equity in your home. This will go along way in giving you the best chance at the loan. When you are looking for a loan on the market, it is important to remember that it is actually the value of the property that will be used as the collateral for the loan itself. The higher the value on the property, the better the interest rates and a larger sum can be borrowed on the loan.

Article Source: http://blogs.rediff.com/besthomeloanblog/2016/08/23/home-equity-for-the-best-home-loan/

Ways to Find Online Home Loans

Are you looking to find online home loans? This latest article will help you to discover the best ways to not only find a online home loan, but also how to save with loans online! Discover the information you need here!

The first point to remember is that you can actually move forward and make big savings, when it comes to getting finance online. The lenders generally offer the best offers online, because they save a lot of money in staff costs, and office space, when they put up a web site, and let it do most of the work! The result is that you can actually save big, so going online is a great idea to find loans!

There are some points to remember, and that is that finding these places is a big question. The search engines are a great source to finding these lenders. And it can help to look through this route. Another route to consider is that of the comparison web sites, which can actually provide you with the information that you need to find the best offers.

There are some other routes to consider. For example, there are web sites that provide great information, and reviews.

The result is that you can find the best offers, from people who have taken out loans from these companies. This offers some more benefits than simply visiting the search engine.

With some research, you can find the best, and realizing that these web sites often allow you to apply online and get an instant decision, it is a great route to finding finance fast!

Article Source: http://home-loans-online.tumblr.com/post/149026646121/ways-to-find-online-home-loans

Ways to Find Online Home Loans

Are you looking to find online home loans? This latest article will help you to discover the best ways to not only find a online home loan, but also how to save with loans online! Discover the information you need here!

The first point to remember is that you can actually move forward and make big savings, when it comes to getting finance online. The lenders generally offer the best offers online, because they save a lot of money in staff costs, and office space, when they put up a web site, and let it do most of the work! The result is that you can actually save big, so going online is a great idea to find loans!

There are some points to remember, and that is that finding these places is a big question. The search engines are a great source to finding these lenders. And it can help to look through this route. Another route to consider is that of the comparison web sites, which can actually provide you with the information that you need to find the best offers.

There are some other routes to consider. For example, there are web sites that provide great information, and reviews.

The result is that you can find the best offers, from people who have taken out loans from these companies. This offers some more benefits than simply visiting the search engine.

With some research, you can find the best, and realizing that these web sites often allow you to apply online and get an instant decision, it is a great route to finding finance fast!

Article Source: http://home-loans-online.tumblr.com/post/149026646121/ways-to-find-online-home-loans

When Should I Refinance If I Have a Fixed Rate housing loan interest?

Many home owners took up a fixed rate housing loan when its rate is relatively low. A fixed rate housing loan also gives the home owner a peace of mind, without having to worry about fluctuations. However all good things come to an end. Your fixed rate term expires and it starts to float. For some, the rate really balloons up and then you wonder if you should refinance now.   

Frankly speaking, when should you really refinance? Should you refinance after the lock in period? Refinance within the lock in period? If you decide to refinance within the lock in period, at which point of time will you be doing it?

Before we go into that, let's spend some time understanding the refinancing process. When you send in your application, the contract takes about 2 - 3 weeks to get back to you. After you have signed the contract and appointed your lawyer to do the conveyance, he or she will probably take three to six months to complete the process.  

Now let's look at this example: You are holding onto a fixed rate housing loan at 3% and it has expired. It balloons up to 5%. With the extra 2%, of course you will feel unhappy about it, so you decide to refinance now. However, you will still be paying at 5% for the next three to six months before your housing loan interest gets refinanced to a lower rate. Remember, the interest you paid to the bank cannot come back to you at all. The money you saved from refinancing can be pumped into alternative investments. No matter what kind of investment you have decided to take up, you are allowing that amount of cash to work harder.

Looking at the above example, you will realize that you should start considering refinancing, three to six months before your fixed housing loan interest rate expires. By positioning yourself to refinance earlier, you are effectively saving more money in the long run. This is also known as "lean finance". Of course, what if your housing loan has penalties, claw backs and so on? Different people have different terms in their contract. It is better to talk to your mortgage advisor about it, so he or she can help you with your refinancing option.

This article from CPCG is currently being protected by Singapore and International Copyright Laws. However please feel free to republish this article, provided that you include working links to our website: [http://www.cpcgonline.com] and http://www.cpcgonline.blogspot.com We appreciate your kind gesture.

Article Source: http://blogs.rediff.com/homeloaninterest/2016/08/11/when-should-i-refinance-if-i-have-a-fixed-rate-housing-loan-interest/

House Loan - Tips on How to Get the Best Interest Rates

Many people have turned to lending institutions when they want to buy a house. This is because there are many lenders out there who have different and affordable rates and it is up to you to dig deep and find them. Most times home financing normally comes under the secured loans category. This means that you will be required to put up collateral that will be security should you default. Usually the house you intend to buy is the security against non-payment of the loan.

It is important that you have all your facts and information on the type of housing loan interest you want. You can do research online and do comparisons on the various types of loans on offer. When you have narrowed down your choice, you can then approach the lenders. The lenders will then verify the nature and the value of the property that you are giving as collateral. This is where you will be requested to submit all the documents that support the value of the house that you intend to buy using the home loan.

Additionally, the lenders will scrutinize your credit history, your credibility and your employment history. There is a general rule that home financing institutions ask for which is to make a three to six percent of the total loan amount your contribution. This amount is usually negotiable. The interest rates of house loans are in two different packages. These are the fixed interest rates and the adjustable interest rates. The fixed rate option ensures that you will pay a specific interest rate throughout the loan period, while the adjustable one has the housing loan interest change according the changes of the bank's policies.

The Annual Percentage Rates (APR) are another aspect of housing loan interest that has to be taken into careful consideration. These include the capital, interest, points (profits that are earned by the lending institution), mortgage insurance, fees and other hidden costs.

Article Source: http://blogs.rediff.com/homeloaninterest/2016/08/10/house-loan-tips-on-how-to-get-the-best-interest-rates/

5 Ways to Tackle the High home loans in India

There is a constant speculation in the market on whether the interest rates will climb further, remain stagnant or decrease over a period of time. But, the harsh reality is that the recent rise in home loan rates has driven the budget of almost 3 million households, out of gear. The EMI's have risen significantly and with a monthly salary unable to keep pace with the growing expenditure, people are stretching too far to make the ends meet. If you also a part of the populace left gasping with this sudden unexpected rise in home loan interest rates, here are a few tips to lower its impact and successfully manage your home loan in these testing times.

1. Shifting from a floating to fixed interest rate on your home loans in India

Those who are bothered, whether the currently prevailing floating rates on home loans, will exceed the fixed rate (currently around 13%-14%) can try to convert their floating rate home loan into a fixed rate one. Though the fixed rate are rarely 'truly fixed' but the banks generally lock them for a fixed period of around 3 years. Before taking any such measure it will be beneficial to get all the facts about the fixed rates and their period. Another thing that warrants attention in this case is the fees bank charge to convert from floating to fixed and vice versa. For example the ICICI bank charges 1.75% on the outstanding principal for changing from fixed to floating rates of interest. All such factors should be carefully considered before taking any such step.

2. Switch to another lender which offers better rates

In this fast increasing interest rates regime, there are banks and housing finance companies (HFC's) which, are absorbing the shock and keeping the interest rate burden to themselves. It is judicious to compare the currently prevailing interest rates of all such banks and HFC's. If you find one such entity, which offers a cheaper interest rate of 0.50% or more and offers balance transfers, consider it seriously. The thing to watch out is the balance transfer fees, the EMI's and loan tenure. Make sure that the benefits of transferring balances are not outweighed by the balance transfer fees and harsher terms.

3. Try to get the loan tenure increased

If your banks allow an increase in your loan tenure, this will significantly decrease your monthly home loan EMI burden. One major thing a bank keeps in mind while deciding for an increase in loan tenure is the age of applicant. If you are not nearing retirement and have a good employment track record chances are great the banks will relent. The upper age limit is 60 years for salaried and 65 years for self-employed with most of the banks.

4. Try to pre-pay a part of your home loans in India

A good option to decrease the EMI burden is to prepay a part of your home loan. Part prepayment is allowed by major banks subject to their terms. If you have a fixed deposit, or any other asset which can be used to bring down your total home loan amount, try to use it. Some people think that taking another loan or overdraft on their existing deposits and using that money to pre-pay a part of home loan is a good option, but it is only another loan. Though, it will make your decrease your EMI's on the home loan but will add another repayment burden for the new loan.

5. Budget out your unwanted expenditures

Budgeting is a tool which is much recommended but rarely used. We go on spending money without sparing a thought about its usefulness. If you keep a track of everyday expenditure and weed out the unnecessary ones, you have some spare valuable cash! This will be a very handy resource to fund those hike in EMI's or at least a part of it. Though, budgeting will require a little self discipline, but the amount of help it can bring to strained financial situation can never be understated.

Home loan rates follow a cycle and they'll continue to rise or fall depending on market forces. Whether the home loan rates will increase or decrease is a question that only time can answer, the current hike can be tackled successfully to a great extent if a home loan borrower follows the above mentioned advice carefully.

Article Source: http://blogs.rediff.com/besthomeloanblog/2016/08/08/home-loans-in-india-2/