Smart ways to Manage your Home Loan

Use the interactive home loan emi calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the housing loan calculator

Become a Proud Home Owner with the Help of a Home Loan

The society that we live in is changing with every passing year. This is not just limited to the spending habits of the public, even the basic mind-set of the people has been evolving. Traditionally, joint families were the ideal form of living. However, nowadays more and more people are opting for nuclear homes rather than living with their parents.

Thus, it goes without saying that the number of home owners has increased in the recent past. It order to make the house an asset that is within the reach of the general public, banks offer loans that are especially designed for the purchase of property.

With the help of these loans, purchases can be made on credit and the amount can be repaid to the bank in installments. This amount is calculated taking a number of different factors into consideration. This includes; the principal amount, rate of interest, tenure of the loan and the method of computation. You can find this figure yourself, using an EMI calculator.

These calculators are available online and will help you compare the offers of different banks before narrowing it down to a couple. A home loan emi calculator will help you to get an overview of how much you will have to pay the bank on monthly bases, in order to repay your loan in time. This is an extremely beneficial tool as it will help you understand how much of your income will go towards repayment of the loan. It is important to avoid a loan that is more than 60% of the monthly income, as it will be difficult to make payments in time.

Default payments can hamper the credit score and affect the chances of getting a good rate of interest in the future. This score is calculated taking the past finances into consideration. This includes everything from payment of credit card bills on time to bouncing of cheques. If you have a good credit score, the rate of interest changed of the loan will be low. However, if you do not have a good credit score, it will be difficult to even get a loan.

Similarly, your past financial record and the monthly income in sued to determine the maximum amount you are eligible to receive as credit. Although banks can offer a loan of up to 80% of the cost of the property, the amount actually offed depends on the state of your finances.

In order to reduce the amount to be paid on monthly bases, you can choose a home loan that spreads over a long tenure. However, while doing this, you must keep in mind that the amount you will be paying as interest will increase. Hence, it is important to make sure that the monthly installments are easy on the pocket, without having the cost of interest pile up.

It is important to take these things into consideration while selecting a loan. Steps must be taken to constantly improve credit score so that when you do apply for a loan, you are sure to get a good rate of interest.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/become-proud-home-owner-help-home-loan-1229597.html?]

An Insight into Buying Resale Property

You didn't plan, but you did fall in love with a pre-owned house in a much-coveted locality? Buying a resale property can be a smart move, however, before you make the big purchase, be aware of all the pros and cons involved in purchasing it. It is absolutely necessary that you rule out any discrepancies that could give rise to legal issues in the future.Benefits of buying a resale property

Easy on your pocket and time: You can save both effort and time by choosing to buy a resale property, as you are likely to find most amenities in place at the time of possession. With resale properties, chances are that you might be able to acquire a property at a discounted price, or come across an eager seller willing to negotiate.

Good Investment Option: A resale property in a prime location is a great investment option as there will be a constant demand for such properties. Since prime localities are saturated and there are no fresh projects, resale properties have a great potential for resale. You can avail a home loan for properties not older than 20-25 years. If you have disposable cash from a recent property sale, investing in an older property is a great option. What to Look Out for When Buying Resale Property

Never let a prime location or an unbelievable bargain take away your attention from the essential measures required to safeguard yourself from fraudulent sellers. With a little caution, you can buy a great resale property at an amazing price. Here are a few cautionary tips to be followed when buying resale property.

Look for Physical Damage: While it is a norm to renovate and paint a house before selling it, do not let the beauty make you blind to any physical damages in the building structure. It is a good idea to hire an architect to examine the property and rule out any problem areas. When you identify damage, do not let go of the house immediately. Instead, calculate the amount you'd have to spend to fix the issue and try to adjust it in the final price you'd be paying for the property. If the expense is too big, then it might be practical to strike the property off your list.

Check Documents Thoroughly: Look beyond the title deed of the property and ask the seller for the mother deed - a document that covers all the transfers the house has undergone. In order to root out any legal hassles, you could hire a lawyer specializing in real estate to put a search report together. This is a necessary caution while investing in a resale property with proper Home Loan Emi Calculator as it safeguards your ownership. Also, insist on examining the original conveyance deed as it gives you an assurance that the seller is indeed the owner of the property. Besides checking the conveyance deed, also make sure that all outstanding dues and taxes have been paid. Caution Against Legal Hassles

It is recommended that you seek the help of district court records to find out if the property has been involved in any litigation. When buying an apartment, all you need is a no objection certificate from the society. However, if you are buying an independent house, watch out for duplicate sale deeds.

[Source: http://www.sooperarticles.com/real-estate-articles/selling-property-articles/insight-into-buying-resale-property-1506940.html?]

What Should You Know Before Taking A Loan Against Assets?

We often avoid taking loans, especially when it requires one to mortgage a property or asset. Well, that concept is fast changing today. Mobilizing funds and ensuring a high return on investment is the trend. One must plan finances well and understand the schemes before taking any decisions.

Loan against asset is one such scheme wherein a person is required to mortgage an asset in order to avail a loan against it. These are secured loans the financial institutes offer to the public. Thus, the loan amount can be huge while the interest rates remain low as compared to the interest rate offered under unsecured loan schemes

Loans against assets can be quickly availed and requires only basic documents, such as proof of identity, proof of address, pan card and others. The financial institutes offer doorstep services so as to make it easier for the customer. The tenure of the loan can range between 6 months to 48 months subjective to the financial institute offering you the same.

Availing Loan against Gold in India

Loan against gold in India would require one to give in a minimum of Rs 50,000 worth of gold in most financial institutes while one can avail a loan on gold valued at less than Rs. 50,000 in the rural parts of our country.

The interest rates for a loan against gold in India are very attractive and thus one must opt for the same in order to fulfill one's financial requirements through Calculate Home Loan Emi.

The gold mortgaged can be liquidated at any given time. The financial institutes generally charge a foreclosure charge, but one may request for a waiver. This shall help you save 1% of charge on the amount payable if at all agreed upon by your lender.

The loan processing charge and gold valuation charges are minimized and one has to bear them in order to avail the loan against gold in India.

One may renew the tenure of the loan at a given charge, or pay up to 1% as a prepayment charge.

The best thing about loan against gold in India is that it can be disbursed within an hour provided the documents are in order and the verification of the gold takes place quickly. One must opt for loan against assets in order to meet unforeseen circumstances and other urgent requirements.

[Source: http://www.sooperarticles.com/finance-articles/what-should-you-know-before-taking-loan-against-assets-1429331.html?]

Are you searching for right finance for your home

Online Emi Calculator

How to Calculate Home Loan Emi

how to calculate home loan emi

4 Tips for Quick Home loan For NRIs

Being able to own the perfect house is a dream that is cherished by everyone. Depending on your choice and decision, though, an ideal decision can be to build that home in your own country. For Non Residential Indians or NRIs, there are a host of NRI loans available for building a house or for buying a plot or house in the country.

Non Resident Indians are currently recognized under the Foreign Exchange Regulatory Act, 1973. With that recognition, it may be a wise decision to get an NRI home loan to help make your dream a reality. With the real estate industry in India booming, it is recommendable for Non Resident Indians to invest in their home town, not only to capitalize on this opportunity, but also to ensure that foreign capital can be pumped into the country. While getting an NRI home loan may seem simple, there are a few steps that you should keep in mind:

Here are a few points that need to be taken to get a quick NRI home loan:

You can only capitalize on an NRI loan provided you have a valid passport as well as other pertinent documents handy. It is also mandatory for the applicant to be a graduate of 21 years and above with a job at hand. A steady income is essential as the amount will only cover 85% of the cost of home as total NRI home loan. While researching about mortgage, bear in mind that up to 36 times of the gross monthly earnings of the applicant may be issued. That being said, it should also be known that there is a certain maximum limit also. Estimating the eligibility of the applicant follows the same steps as what is done for Indians living in the country.

You will need to pledge certain assets as collateral before applying for a loan. These assets can come in the form of shares, debentures or other collaterals. It should be noted, though, that foreign company shares are not seen as acceptable forms of collateral. Making the use of Indian company shares is mandatory against an NRI loan.

Using an NRE account is mandatory while carrying out all the necessary bank transactions. An NRE account helps transfer all profits gained on these funds abroad. Approach only a licensed bank which is allowed to offer a House Loan. The RBI currently offers these licenses to the banks and authorizes them to deal with NRIs.

The interest rates levied on NRI loans are not different from the rates issues to Indians living in this country. Banks and financial houses, as part of their RI services, have to take care of the necessary documents to ensure eligibility before issuing an NRI loan. While the interest rate on an NRI home loan can vary based on several factors, by and large, they range between 7.5-8.50 %.

[Source: http://www.sooperarticles.com/finance-articles/4-tips-quick-home-loan-nris-1343721.html?]

The Different Methods of Calculating Home Loan EMI

Most first time borrowers are under assumption that calculating home loan EMI is easy. All you need is a housing loan EMI calculator. You have to agree with that. It does seem like if you have EMI calculator for home loan, all you need to do is enter right numbers. But, believe it or not it is more complex than that. Here are two reasons. Firstly, lots of factors in the equations remain unaccounted for. Secondly, EMI calculator will not help you get the specifics you actually need. So, here are three common methods.

Manual calculations:

Most of the formulae for home loan EMI calculations are available online. You can easily note them down and calculate EMI as per repayment option, home loan tenure, etc. The ease of doing them manually depends on your mathematics skills. But, most websites do offer an example in order to assist readers calculate home loan EMI. This process is the most tedious one. But, there are few high-level calculations you cannot see with online tools. For example, EMI as per balloon repayment option. Manual calculation is the way to go.

Online calculations:

Most borrowers are familiar with Emi Calculation for Home Loan. Thing is, there are a lot of housing loan EMI calculators in India. All of them do not offer real help. Some are just an online version of basic mathematical calculator. Yet, it does simplify your job, especially if you are not a maths geek. But, there are some efficient EMI calculators for home loan. They support your calculations well with several additional online tools like amortization table. DHFL has one of the best EMI calculators in housing finance industry.

Computer calculations:

You can use excel sheets on a computer to get the job done. It will be as good as some of the online EMI calculators. But, with basic asthmatics skills and few formulae, you can check the basic structure of repayment options too. However, it is not as good as some of the advanced online tools.

Either way, the best method for your calculations is the one that give accurate results instantly. Online home loan calculator is a great choice but not for more customized calculations. However, you will need to know the following before you calculate the EMIs and other details. For example, cost of property, processing charges, stamp duty, legal fees, and realistic interest rates. This information can be made available to you when you meet a relationship manager for the same. Even a third-party personal finance consultant is a great person to meet for these details

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/different-methods-calculating-home-loan-emi-1382560.html?]

A Start-to-Finish Home Loan Tips

Difficulties' pertaining with property loan is easily solved by the available option of Home loan. Borrowing a home loan helps the individual to reduce the burden from his head; it is also true that borrowing should be done with proper and right source. If you are failed to track the correct source and are not aware of the fiscal and taxation consequences in getting property loan it can soak your life and peace of your mind at every single point of time. Here are some guidelines for acquiring, taxation policy and repaying your home loan.

Means, Mediums and borrowing capacity of an individual?

Banks, private money lenders, financial institutions, friends and relatives and also many others are the available means, or sources for grasping the loan, in this Banks plays major role in providing a Property loan. Banks have their own criteria for calculating the capacity of an individual’s borrowing. Banks judge your borrowing capacity from the chart of the total income expenditure done by you in the given period of time. It depends upon the monthly income and expenses flow from your income. Bankers assume around 40% of monthly income can be utilized for paying into the monthly installment.

Like, if your monthly income is about 50000, then the maximum installment amount can reach around 20000. Further, calculation for the final loan amount is also calculated on the period of loan & rate of interest associated. For eg, rate of interest at 9.5%, along with tenure of 20 years then loan of approx 22 lakhs can be availed. Here, your Liabilities are also taken into account by the banks. Henceforth it is recommended that overall expenses should not exceed 55 - 60% of your total monthly earnings to acquire a residential or commercial property loan.

To acquire property loan age factor is also considered by bankers. If an individual is 53 years of age then there are chances of not getting loan through banks whereas on other side if an individual is at 30 years of age then he can easily quote and receive the applied loan. Here age factor is considered by banks so that there should not be any existence of default payment of installments or loss to banks. As the age of 60 is the age where an individual’s get retired from his service and the person with 30 years is still young at his age to easily repay his Emi for Home Loan and outstanding as compared to person of 53years of age.

Monthly CTC salary is also indeed important factor. Allowances and special allowances are not taken into account while lending the money. This includes commission, incentives, monthly bonus all this may reduce your eligilbity for loan to acquire since it is not fixed regular income. Home loan is also favorable for the person who is opting loan for renting the house. Individuals, who has availed the loan and given his flat on rent, can apply for the deductions without harming their HRA's received in their gross salary under sec 24(b).

Joint, family, friends and Relatives loan

If an individual is running with short of funds or reserve to acquire a property and banks reduces his borrowing eligilbity he can go for a co-borrower. Banks generally accepts a co - borrower and provides loan. Some lenders are not very much OK with co - borrower as your spouse, since they think that, there can be any time disputes between the both. So the idea of making your life partner as co - borrower is a good option.

Loan managed from friends, relatives or any other financial sources also enjoys the tax benefits. This comes into effect only if the loan so acquired is for building a property, to buy property, other repairs and renovations accomplished with the property. But, claim and deductions for the loan availed from other financial institutions is not considered under sec 80C. Taxation is liable only in ready constructed properties. However, no tax deduction is followed if the loan is availed to buy an open plot of land.

Taxation Benefits on Property Loan

Under section 80C deductions upto1 lakh can be claimed if an individual repay housing loan. This is very much beneficiary to the person who actually pays the huge amount of installments. Not only this, deductions under sec 24(b) of 1.5 lakhs a year can also be claimed apart, from the taxable earnings of the borrower.

Tax deductions can be claimed individual if there are co - borrowers for the home loan. Individuals are eligible for the benefits as per the ratio of contribution to acquire and ownership of so called property. For instance if wife pays 30% of overall amount from her source then she is liable for the deductions as per her contributed ratio. Thus, if in a current year, principal is repaid of 1 lakh, she can claim the deductions of 30,000 following her husband to 70,000.

[Source: http://www.sooperarticles.com/real-estate-articles/mortgage-financing-articles/start-finish-home-loan-tips-335902.html?]

How to buy property - Home Loan Emi Calculator

A checklist for women buyers

A matter of choice

Single women who have migrated to bigger cities tend to be thorough in their research and base their property purchase on factors such as high safety and security in the neighbourhood.

The average sizes of apartment women prefer ranges from 500 to 800 sq.ft. (In metros) as they often attach greater importance to security rather than the size of the home. Women prefer investing in properties that have functional security solutions and alarms in place, and are willing to pay a premium for the same.

Special Concessions

Recognizing the trend of more women buyers entering the real estate market, both the developer communities as well as lending institutions have special concessions for women. For instance, in states such as Delhi and Haryana stamp duty for women is 1-2 per cent lower than that for a man purchasing property.

Lenders who often view women as better customers as they tend to be more regular with timely repayments have a spate of women oriented loans where the rate of interest offered to a woman purchasing a property is 0.25-0.50 per cent lower than regular home loan products. Further, women are eligible for a tax deduction of up to Rs. 2 lakh on the interest paid on home loans.

Plan your finances

The first thing that to consider while taking a home loan is affordability it can be done through Home Loan Repayment Calculator. A mortgage should be well planned for and invested for through proper investments (the down payment component). At the beginning a career considers equity investments.

Don’t overstretch yourself

Your home loan should not ideally exceed 40 per cent of your salary. If your affordability does not allow purchasing the apartment you have set your heart on, do not stretch beyond your means.

If that means waiting for a while, and investing for a longer time, do so and do not be in a hurry to purchase property. Else, you could consider investing in a smaller apartment for the time being.

Pick lender after scrutiny

As mentioned earlier, there are quite a number of loan products that are directed towards women. For the first level of research go online and make a comparison of all the loan products that seem suitable to your needs.

With many online aggregators, the features of each loan product should be fairly simple to assess. Once your online research is complete and you have a shortlist, make a personal visit to the bank branch and speak to the sales representative to fully understand the features of the loan product you are interested in.

[Source: http://www.thehindu.com/life-and-style/homes-and-gardens/A-checklist-for-women-buyers/article15633667.ece]

A Guide to Simplify Your Personal Loan EMI Calculation

EMI is an amount which is payable to banks or any other financial organization until the loan amount is entirely paid off. Basically, it is the combination of interest amount and principal loan amount which a borrower needs to pay every month. It is to be noted that the interest constitutes a large part of EMI payment in the initial stages. Although, the amount of interest repayment decreases as the tenure comes to an end.

Identify the Loan Cost & Check Eligibility Criteria for Personal Loan

Whenever you think about applying for a personal loan, the only thing that comes to your mind is EMI, which will get deducted from your bank account every month. Be it a personal, home or a car loan, the entire process begins with EMI calculation.

Eligibility conditions are as follows:

The minimum age of applicant should be 21 years and the maximum age shouldn't exceed 60 years

The applicant should have a net monthly income of 20,000 & above, in order to avail the loan hassle-freely.

The applicant should be permanently employed with a recognized organization

Self-employed/businessmen with a good credit score can apply easily.

What can be the Ideal EMI calculator for Personal Loan?

In order to get the accurate EMI on the amount you have lent, you need to calculate the amount you have borrowed, the interest that you will be paying and the money you will be paying for processing fee. Once you have all this data in your hand, you can go ahead and calculate the accurate EMI that is payable on the existing loan amount. After all the Home Loan Interest Calculation, in case you realize that the amount of EMI is exceeding your payment capabilities, you can easily reduce the loan tenure or the loan amount.

Simple Formula to Calculate Your EMI

In order to simplify personal loan EMI Calculation, you just need to enter the following information in EMI Calculator:

Principal loan amount

Loan Tenure

Rate of Interest (%)

By clubbing all these components, you can easily get the accurate payable amount on your personal loan. As a matter of fact, EMI calculator is simple to use, quick performer and easy to understand. You can calculate EMI any type of mortgage by just using this calculator. In case you wish to get a more precise number, you can enter values in the box provided in the calculator. Once the value gets changed, the personal loan EMI calculator will recalculate the Equated monthly income in most precise manner.

This is how, the personal loan EMI calculator helps in planning payments, tenure and how much amount should be borrowed with the best interest rate. Possibly, this is the easiest way to calculate EMI.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/guide-simplify-your-personal-loan-emi-calculation-1487563.html?]

Home Loan Emi Calculator

Are You Choosing The Right Home Loan Policy?

Rising cost of residential accommodation is primarily one of the main reasons why home loans have increasingly gained popularity in India. There is a tremendous amount of disparity in demand and supply of 'quality' residential accommodations in India.

Home loans are easy options families can buy the house of their dreams, despite not having sufficient amount of funds. The popular types of housing loans include: Land Purchase Loans, Home Purchase Loans, Home Construction loans, Home Expansion / Extension Loans, Home Improvement Loans, Home Conversion Loans, NRI Home Loans, Balance Transfer Loans, Bridged Loans, etc.

Banks across the country provide home loans to people, allowing them to pay back the entire lump sum through EMI's -i.e. Equated Monthly Installments that are distributed over an allocated period of time. It is offered both by all public and private sector banks operating in India. These loans then become easier to pay by middle-class families in India. 

From the vast amount of banks and financial institutions, customers usually face a tough task to find the right bank/institution which offers the best home loans in India. Usually online portals help here. They offer customers the lowest possible rates through a totally online process; without having to actually go to various banks to compare loan offers and interest rates.

However, there are certain essential aspects any customer who is looking out for a housing finance should pay attention to. Some of the factors include grounds of interest rate, tenure, amount, processing fee, penalties, prepayment charges, guidelines, EMI amount and additional charges. 

A customer who is trying to find the bank/institute offering the best home loan should look for that bank which provides low interest rates, maximum amount, maximum tenure, low EMI amount, no prepayment charges, low or free from processing fee, no additional charges and easy guidelines.

An EMI has to be repaid to the bank or lending institution through proper home loan emi calculator within a specified number of months based on the rate of interest, total loan amount and the tenure of repayment that is agreed upon by both the parties. There are two basic elements in the EMI - the Principal and the Interest. An easy way to find out the total loan amount in addition to the interest accrued on it and then dividing the same by the repayment period.

Usually calculating monthly installments is quite a challenge for loan borrowers. Tools such as a home loan EMI Calculator make it easier to calculate the equated monthly installment amount. They are online calculators which can be accessible anywhere and anytime.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/you-choosing-right-home-loan-policy-1161506.html?]

Housing Finance - Excellent Home Loan

Home loan or housing finance predominantly serves housing needs of individuals. They might be of anything like buying new house, property or land, construction of a house, doing some renovations to the house and making some extensions. The housing finance is absolutely one of the most important and productive loan products that help you materialize your dream housing project. It basically involves giving you monetary assistance so that you can purchase new house or carry out renovation or do other housing projects aforesaid.

Most of the time, we don't have sufficient money in order to purchase new house. Considering that this is very expensive venture for any individual, home loan is seriously a good resort to mitigate the gravity of financial problem in order to materialize the dream housing project. This is true that housing loan has its relevance to solve inordinate housing projects. Thankfully we don't have problem of finding source to obtain such finance as there are many banks or lenders in market.

To get a hand on such finance, one has to wade through procedures of documentation. Followed by yours giving an application letter to the bank, the process of documentation entails submission of credentials like income proof, resident and age proof and address proof. Bank statement is one of the most important credentials in this aspect.

Since it includes all your financial transactions, the bank has easiness to understand your spending or expending habits. You are supposed to have updated version of your bank statement, not something more than 7 months ago. This will help you lender know about current financial transaction history of yours.

It is must to submit documents according to the type of aspirant you are. In other words, salaried and self-employed aspirants should submit documents in accordance with the terms and conditions specified. It is mandatory to submit original and relevant documents to the lender in order to qualify for the finance. If you make mistakes, better proofread them before submission.

Through Online Emi Calculator Home loan interest rate, higher or lower, all depend on the type of credit worthiness you maintained. This denotes to the fact that you don't have any outstanding loans or unpaid credit card bills. If you have any one of these defected credit worthiness, better clear off them before you apply for the loan.

Consideration of age and current income and repayment capacity are some of the home loan eligibility criteria to qualify for the finance. Bear them in your mind before you set off for the loan.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/housing-finance-excellent-home-loan-967106.html?]

Emi Calculator India

How existing Borrowers can reduce their home loan interest rates

Lenders are aggressively reducing interest rates on new home loans. But what if you are an existing borrower? Those who have taken home loans before April 2016 are still paying a higher interest as their loans are either base rate-linked or benchmark/retail prime lending rate (B/RPLR)-linked. The options before you are as follows

If bank is the lender

One-time switch to MCLR: You can switch from a base rate to MCLR or marginal cost-of funds based lending rate. The latter is more dynamic as it is directly linked to repo rate and allows you to enjoy the change in interest rates faster. “In the current cycle of lower interest rates, it makes sense to shift to MCLR as a downward change in repo rate will lead to lower MCLR

There is also a cost involved. Banks charge a conversion fee of around 0.5% on your outstanding loan amount, plus taxes. For instance, if your home loan outstanding is Rs 20 lakh, the conversion fee would be around Rs 10,000, plus taxes. Most importantly, switching to MCLR is a one-time option; you cannot revert to base rate again. And once you choose an MCLR rate, you cannot reset it for the next one year.

If loan is with NBFCs

Reset to a lower rate: The MCLR system doesn’t apply to housing finance companies (HFCs) and non-banking financial companies (NBFCs). So, if you have taken a loan from either, you can reset your interest rate by paying a conversion fee.

Once you opt for a reduced interest rate either with banks or NBFCs, you have the option of maintaining the same EMI or lower the loan tenure and vice versa. In case you choose the option to lower the EMI, you would be required to provide new ECS mandate/post-dated cheques.

Cost-benefit analysis

Before taking the plunge, calculate the total cost you are incurring to reduce your interest rate, and the savings you are making in the process. If the fees are higher than the savings, it doesn’t make sense to switch or reset. Account for the total cost—conversion fee plus taxes. Look for at least 25 bps differences in interest rates.

Also, consider the remaining tenure of your Home Loan. “When the balance tenure is only a few years, it is not advisable to switch/reset as the bulk of the interest component would have been paid and EMI would constitute mainly the principal

Refinance options

If the deal with your existing lender isn’t lucrative, you could consider refinance or balance transfer option. However, it is a lengthy process. It is like getting your loan approved all over again. Refinancing can be costly too. Various fees of the new lender can be up to 50 bps of the loan amount and then there is the mortgage fee plus taxes.

[Source: http://economictimes.indiatimes.com/wealth/real-estate/how-to-bring-down-your-home-loan-interest-rates/articleshow/55385784.cms]

Emi Calculator

Everything You Need to Know About the EMI Calculator and Its Benefits

Every individual has a different financial requirement and spending habits. No doubt, at a time, these individuals will opt for extra financial assistance in the form of loans to help assist in any financial requirement. Whether it is a car loan, personal, loan or even a loan, as an applicant you will need to consider the basic features of it, namely how much will it cost you?

This cost is calculated in terms of monthly payments, known as EMI's. EMI's are calculated on the amount that you have borrowed, along with the interest you will need to pay on this borrowed amount. Additionally, it will also include the processing fee for the said loan. Using these details, you can calculate the ideal amount of EMI you can afford to pay.

However, at times, the calculating process can be tedious. Especially if you are comparing different financial institutes to see where you can get the best rates. However, by using the EMI calculator, you can easily calculate the ideal EMI through Emi Calculator that will suit your need in mere seconds. On adjusting the features of the calculator, this financial tool will provide you with three part information. The first would include the details of the EMI itself. The second part would include the breakup of the payments that are due. The third part, which is provided by a selected few calculators include the amortization table.

The EMI

EMI also known as the Equated Monthly Installments is the amount that you are expected to pay if you go in for a loan. This amount would include the payment of the principal amount and the interest that is applicable to the loan. It is one of the most important features of the EMI calculator, as it provides the details of the affordability of the loan, and how you can afford it.

[Source: http://www.sooperarticles.com/finance-articles/everything-you-need-know-about-emi-calculator-its-benefits-1482617.html]

Types of Home Loan Interest Rate

The real estate market is witnessing a slowdown. This is partly due to rising prices and also due to increase in the home loan interest rates. Whether we choose a fixed or variable interest rate for repaying the home loan to the financial institution that has to be examined thoroughly?

Fixed rate

For a home loan with a fixed interest rate one should know his/her monthly repayments for the entire duration of the loan. This is slightly more expensive than a floating rate but there is no risk associated with it. Yet this formula is still the most popular.

Variable rate

A variable rate may vary throughout the duration of loan repayment. In the start home loan may be less expensive but may become more expensive later because everything then depends on the interest rate that changes due to the government policies. There is a built-in protection. The maximum possible exceptions for the variable interest rates are predefined so there are not too big surprises can come for the home loan repayment. With a "tunnel" 2 / -2 is the rate at the review dates no more than 2 percentage points higher in comparison with the start of the loan. Conversely, the falls no lower than 2 percentage points. For example, an interest rate of 5% can be determined with these limits do not increase in excess of 7% for interest and it performs well over the whole duration of the loan.

Accordion Credit

Besides the fixed and variable Home Loans interest rate accordion credit is an also a point. In this formula the term is not fixed in advance at the review date, it is adjusted depending on the evolution of interest rates. For example, during rising interest rates your monthly payment remains the same but the duration is extended. Again, there are safeguards built in, making the time limit not too prolong in these cases but renewable upto 5 years only.

Choose which formula is best?

Depending on one's own salary expectations or if you believe that interest rates will continue to drop, choose the formula that best suits you. Also, you can often change at the time of formulation of a repricing. You can also choose to formula 10/5/5. Then you are 10 years guaranteed a fixed interest rate, which is then reviewed and the formula is reworked again for 5 years and so on.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/types-home-loan-interest-rate-806813.html?]

10 things to know about the new loan rate

This month, all banks moved to a new lending rate regime—the marginal cost of funds-based lending rate (MCLR). Till March-end, new floating rate loans were linked to base rate. The new rate regime is likely to improve transmission of rates to the end consumers. If you check the current interest rates, MCLR-linked home loans are at least 10 basis points (bps) cheaper than base rate-linked home loans. One basis point is one-hundredth of a percentage point.

What does this mean for your existing home loans? What happens to your other loans such as personal loan, auto loan and education loan?

What is MCLR? It is the new benchmark lending rate at which banks will now lend to new borrowers. Till 31 March 2016, banks used base rate as the benchmark rate to lend. While MCLR will be the benchmark rate for new borrowers, for existing borrowers, the base rate regime will continue. MCLR is closely linked to the actual deposit rates. Banks have to publish at least five MCLR rates (overnight, one-month, three-month, six-month and one-year).

Which loans will get linked to MCLR? All floating rate loans will be linked to MCLR. “This includes home loans, loan against property and many of the corporate term loans. Those such as car and personal loans, which are fixed rate loans, will not be linked to MCLR

How does such a loan function? If you are a new borrower who has taken a floating rate home loan, then it will be linked to MCLR. This means two things: one, you will have a reset clause in the loan documents, and two, you will have a spread.

Through Calculate Home Loan Emi Will it changes the EMI? Usually, the tenor of the home loan will change and not the equated monthly installment (EMI). “When MCLR is reset, the tenure of the loan is altered keeping the EMI amount unchanged.

How can an existing borrower move to MCLR? Currently, these loans are cheaper than base rate-linked loans. All existing home loan borrowers can switch from base rate to MCLR, but this comes at a cost.

Should you switch from base rate? Most banks charge 0.50% of the outstanding principal as switching charges. Some may ask for a flat fee. There will be other administrative costs as well.

What to check for before opting for an MCLR-linked loan? Besides the rate, you need to check the spread for your loans. “In concept, MCLR is not very different from prime lending rate or base rate.

Can one negotiate with the bank on any of the charges? You can negotiate the switching charges and other administrative costs. “Though the bank has a list of charges, most of these can be negotiated.

[Source: http://www.livemint.com/Money/Xizd6EP6QOnFTl7jtxbQSO/10-things-to-know-about-the-new-loan-rate.html]

Online Emi Calculator

Check out the pros and cons of fixed and floating interest rate home loans

1. What is a fixed interest rate home loan?

A fixed rate home loan is a home loan where the interest rate is fixed over the entire tenure of the loan. The interest rate doesn't change with market fluctuations. A major component of the monthly installment in the earlier period part of the loan tenure is used to service the interest while the principal is served in the later parts of the tenure.

2. What are its advantages?

The interest rate remains fixed irrespective of market conditions, bringing a sense of certainty in the repayment schedule and structure. This loan is suitable for good budgeters and those who want a fixed monthly repayment schedule that doesn't fluctuate.

3. Are there any disadvantages?

These loans are usually 1-2.5 percentage points higher than the floating rate home loan. Further, if for any reason the interest rate decreases due a change in the business environment, this loan doesn't get the benefit of reduced rates and the borrower has to repay the same amount.

4. What precautions should customers take before availing this loan?

Customers must cross-check with their bank whether the fixed rate home loan is fixed for the entire tenure or only for a few years. Experts say fixed rates are a better option if the economic scenario is conducive to rising interest rates in the near future.

5. What is a floating interest rate home loan?

In such loans, the rate of interest varies with market conditions. These loans are tied to a base rate and have a floating element, through Home Loan Repayment Calculator. If the base rate is revised upward or downward depending on the market conditions, the floating interest rate is also revised accordingly.

6. What are its benefits?

It is cheaper than fixed interest rates when the interest rate outlook is easy. Even if the floating rate goes higher than the fixed rate, it will not be for the entire tenure. Interest rates are cyclical over the long run and hence will fall for some time over the tenure of the loan. Hence floating interest rate helps with savings in terms of amount of repayment depending on which phase of the interest rate cycle a loan in contracted.

7. What are its drawbacks?

Monthly installments are uneven making it difficult to budget. Also, customers benefit by choosing a floating rate home loan only as long as the interest rate does not go beyond 11.5%.

[Source: http://economictimes.indiatimes.com/wealth/borrow/check-out-the-pros-and-cons-of-fixed-and-floating-interest-rate-home-loans/articleshow/50828460.cms]

A quick way to find the eligible home loan amount…

Buying a house is surely one of the major responsibilities in life. You have to be prepared in terms of thorough research on the place of living, amenities, financial resources, etc. There are leading government bank and private financial companies who are always ready to help the individuals to get a housing loan at cheaper interest rates.

But before offering a home, every person qualifies for some amount known as “house loan eligibility” based on factors like job stability, income source, and credit score. It is very important to know about the eligible loan amount before you opt for a housing loan.  While using house loan eligibility calculators your age, current income, repayment capacity is taken into consideration by bank or finance companies.

With internet-based services, things are now at the click of a button for you. To avail your finance you don’t have to visit banks or finance companies, fill up form, get copies attested and finally submit them. Things can be taken care off right at your home or office. A computer, laptop, tablet or smartphone device and good internet connection is all that you require applying for a loan from any part of the country. Ensure that you keep scanned copies of the relevant documents before applying online. Once verified and approved, you will get a phone call from the respective bank for loan disbursement in your bank account. It is important you get an idea about the bank or finance companies past performance in terms of offering clients end-to-end solutions, customer service, and other quick online processing facilities.

Based on your income source, different banks consider different percentages that you can set aside for paying monthly installment. These percentages are on the basis of occupation, the number of depends. It also takes into consideration interest rate of the bank, a time period for which you need to loan and loan amount required. Based on these ground the house loan eligibility calculators tell you the loan you’re eligible for.

Some benefits of house loan eligibility calculators:

•Make your housing loans affordable and easier on your pocket each month

•Fixed and floating rate options available as per your preference

•Know the savings before transferring your Home Loan to other banks, without any hassles

•Get aware of the flexible repayment options for your home loan from the comfort of your home or office

It is advisable while planning to buy your house, construction or renovate it, through a housing finance improve your credit score history. For any lender, it speaks volumes about how well you manage your finances and how good you are at clearing your dues. More good the credit history better are the chances of higher house loan eligibility through Emi Calculation for Home Loan.

It is usually difficult to get approved for a home loan if you have a bad and sometimes even average, credit score. 

House loan eligibility helps you know what your tenure and interest will look if you make extra payments. It’ll display a new pay off date and a new interest total, giving you the best estimation on your finances in future. It cuts down the hassles of usually tedious and time-consuming manual calculation of EMI applicable on your home loan. It is simplified and loaded with all the essential data, including amortization details and the ability to alter components like interest rates and tenure to try other types of permutation and combinations.

Seven steps to your first Home

For a millennial, the decision to buy a home can be a life-altering one. For young individuals or couples, getting into a long-term debt commitment such as a home loan can be a daunting task. However, as financial advisors would agree, buying your first home in your 20’s or early 30’s can be one of the smartest moves you can make financially, as it gives you a great head start in more ways than one.

1Getting over the initial fear

Those who have just about completed hefty student loans may develop cold feet at the thought of skimping once again and preparing to take a home loan. At this stage in your lives, it is important to see the bigger picture. In a few years from now, a roof over your head that you can call your own before you reach your middle years will feel like a great achievement.

2 Invest with a specific goal

If you have firmed up your mind to purchase your first property, the first thing you must do is begin investing with this specific goal in mind. Set a budget and pick an investment option that will help you meet your goal in a specific number of years. While setting a budget, do not be too hard on yourself and try to stretch limits. Your first home need not be your only home and you can always graduate to a bigger place when you can afford one. While saving for your first home, equities may be your best bet as they offer you the best inflation adjusted returns as compared to other instruments despite the risk factor.

If you do not have the expertise or the time to invest in equities yourself, you can choose the systematic investment plan (SIP) route of mutual funds. By investing in equities through the SIP option of mutual funds you also get the advantage of compounding, which means your returns are reinvested over the term you choose to remain invested in the fund, thus helping you achieve your financial goal of saving up enough for the down payment of the property.

3 Home loan options

Does enough research before you decide on a lender? Many lenders want young and dynamic home owners as customers and have specific loan products that make it easier for you to make repayments in your initial years and increase the quantum with the rise in your career. Checkout such options and read in between the lines to understand each nuance carefully as well as through calculate home loan emi.

4 Begin with clean credit records

One of the most important factors that will decide whether or not you are creditworthy is your Credit Information Bureau (India) Limited (CIBIL) score. Your CIBIL score is a three digit numeric between 300-900 that is assigned to you by India’s premier credit bureau. This score is based on your credit behavior or how you have serviced your credit lines you have availed of thus far. In order to maintain a good CIBIL score (750 and above) it is necessary for you to have serviced debt regularly and well before applying for a fresh loan.

One of the best ways to ensure that your CIBIL score remains intact is by making a habit of not building up credit card debt. Spending small amount and ensuring that you make a habit of repaying your credit card bills before the end of each billing cycle is a good way to ensure that you do not get into a debt trap and also maintain a good CIBIL score.

5 The quest for your first home

In this world dominated by the internet, the search for your first home must necessarily begin online. It is a good idea to go through all of these portals and shortlist properties that you would like to see personally. Besides using such websites, make the best use of the internet and social media to reach out to actual buyers and check the reputation of the builder, the living experiences and the problem areas if any. A thorough virtual search gives you firms footing before you start visiting the properties personally and finally zero in on a choice that is best suited to your needs and budget.

6 Be aware of your rights

The real estate market can turn out to be a head spinner when you are out there on a house hunt. It is important to be mindful of what your requirements are and be aware of your rights when seeking out a home.

7 The final step

Once you have taken possession of your new house, the first thing to do is store all your property documents. Make a few photocopies and keep them in at least three different locations. It is a good idea to get all your property documents digitized and locked in an e-safe. Next, update all your official documents with your new address and finally transfer all property related paperwork such as water and electricity meters, society membership and property tax records in the local municipal body in your name.

[Source: http://www.thehindu.com/features/homes-and-gardens/a-property-buying-guide-for-millennials/article9197544.ece]

Housing Loan

Fulfill your dreams with easy mortgage finances...

People need money to fulfill their goals and lead a successful life. The purpose could be anything such as Business Expansion, education/Marriage expenses, Purchase of a house, Improvement/Extension of existing Property, medical necessities, etc.   While traditional finance comes at an extremely high rate of interest and complex repayment structures, borrowing from friends or family is equally painful. There is always a fear of getting a rift in the relationship if the money not given in time.

The best way to arrange finances would be keeping your property mortgaged with banks or private finance companies. Sounds great! Your property can be a blessing at times as it can be used for more than one single reason. Mortgage loans are one of the best ways to buy long-term assets, specifically real estate. The property is first pledged to the bank and then after the repayment of the loan with the applicable interest rates, the ownership of the property is returned to the borrower. Banks have a protection in case the borrower defaults on his or her payments. Therefore, these loans come at competitively low-interest rates, fair amount of tenure for repayment and flexi-repayment options.

With a wide presence of online comparison sites across the country, you can compare mortgage loan in terms of benefits and features completely customized to suit your needs. Thus, for those who cherish a dream or a goal, your property can help you achieve it in the most affordable way.

You can mortgage your existing property in semi-urban or urban locations. The nationwide presence of leading government & private finance banks or companies and expert customer care ensures a sensitive handling of your property documents and records.

Mortgage loans with flexible interest rate may be tempting for a consumer when the rates are low but they run a risk of pitching up the rates in a market downfall. By opting fixed rate loans one may pay a slightly higher processing fee and interest rate but they are out of the fear of market uncertainties on the lending interest rates. 

All it requires is to be a bit cautious and intelligent in your research and you’ll be able to find a genuine online mortgage finance which will meet your all requirement. These banks and finance companies have online websites where you can compare loans in terms of benefits & features, interest rates, flexible repayment options and more. If there is any doubt you can talk to customer service or chat online with executives about the loan structure and other details who are at your service 24 / 7.

These loans can be taken for various funding requirements. But while availing this loan, one has to state and assure that the loan amount is not being taken for an illegal purpose or being indulged in any speculative activity. In India, there is various government and private banks that offer mortgage loan at through Online Emi Calculator we can calculate

 an interest rate as low as 11 to 14 % and a fair amount of tenure of around 5 to 10 years to clear off the debts. These banks may charge a nominal fee on prepayment or at times, no charges at all.

So, unlock the hidden potential of your hard earned property and avail a suitable mortgage loan against your residential or commercial property. Markets are filled with a wide array of property loans that will meet financial expenses pertaining to your business, educational or personal requirements. Bank a suitable opportunity now to craft your better tomorrow!

Some benefits of mortgage loan:

• Finances on residential & commercial properties for business needs, marriage, medical expenses & other needs

• Transferring your outstanding loan availed from another Bank / Financial Institution

• Longer tenure, smaller EMIs

• Attractive interest rates

• Easy and hassle-free documentation

• Simple repayments through monthly installments