Repay your home loan quickly in few steps.

Buying a home in this skyrocketing property prices is easy and exhaustive, now you must be thinking how an easy thing would be exhaustive, right? Let’s explain you this in details, in this article. Purchasing a home is easy in this market of expensive property prices owing to the various home loans available for the potential buyers. It is exhaustive because of the long repayment tenure. Though the long home loan tenures help you get affordable EMIs but it can raise the interest cost you pay on the loan. So home buying can be easy and hassle free if you plan the venture beforehand and squirrel away some amount of money from the beginning of your career.

If you have a good credit score, impressive bank statement and good financial profile; then you can expect your home loan to get disbursed within a week or two once the required documents are scrutinized & verified. With the aforesaid factors you can expect to get maximum of 70-90% of the property value, depending on the price slab. They can also help you to get affordable interest rates, which are nearer to the lowest rate the concerned lender is offering.

Once your home loan is approved, the exhaustive phase of the venture starts.It is the debt repayment phase, because it absorbs almost 20-30 years, depending on the type of loan you have taken. Experts advise borrowers to repay the loan amount sooner to avoid unnecessary increase in the interest cost. There are certain steps, which can help the borrower to repay the housing loan sooner, like:

• Avoid taking any other loans while you are in the home loan debt phase. Analyze the outlets of hemorrhage money, cut short the unnecessary expenses and try to save maximum amount, so that you can repay your loan before the tenure.
• Replace the unnecessary expenses with necessity. It’s is better to save now and repay the debt, than spend now and end up paying the extra interest cost for the long tenure.
• As soon as there is salary hike or increase in the monthly incomes, don’t forget to increase the EMI cost, this can speed up your debt repayment by reducing the number of installments.
• Save the extra EMI cost, in case the interest rates come down in case of the adjustable rate of interest.
• Invest in life insurance policies, stocks & bonds early, so that it can give you high maturity amount after certain period that can help you to repay the loan amount.

The above mentioned few points can help you repay the housing loan quickly. Before taking the loan make sure that your lender doesn’t penalize your repayment with certain percentage on the balance money after the fixed lock in period.

Though getting an affordable loan for purchasing a home is not a difficult tax anymore, but debt is a debt. It is better to pay off the loan sooner, without hampering your existing financial commitments towards your family’s health and children’s education. After considering your affordability and other essentials like job profile and future, go for the prepayment of the loan for your home.

Know how your credit score can craft your best home loan.

In some cases best is not what others say, sometimes it’s you who can decide the best for yourself. Similarly in case of home loans, there are numerous financers sprawled in the market who declares themselves to be the best, but it may not fit in your wallet or may not serve your purpose. So before you take a home loan for purchasing your own abode just craft it to be your best home loan. To get the best financer and utilize the facility you need to be a responsible borrower, if you are not then make yourself the one. A loan term can only be hassle-free if you are a responsible and well-versed borrower, who knows his responsibility and the nitty gritties of his debt.

Did you know that your habit of expenditure can affect your home loan eligibility? If you are spendthrift then forget about best home loan, chances of getting a home loan also minimizes. If you have a credit score in between the range of 350-700 then it’s unacceptable for home loan, though some financers may give a second thought to your application. If your score is nearer to 900 then the financers have faith in you as a borrowerand chances are there you may get 80-90% of the property amount, decreasing your margin money requirement. As a borrower for you the maximum amount of property value as loan amount makes it a best home loan, so indirectly you make your loan good or best.

Lesser credit score may get you a home loan, but interest rate on the loan amount may be higher compared to those borrowers who have an excellent credit score. Those borrowers may enjoy the competitive interest rate and faster loan process. Again lower interest rate makes your home loan the best; ultimately your credit score decides the fate and nature of your loan.

The monetary value of the house you chose to invest is a matter of lump sum amount. It is beyond the reach of a normal salaried or self-employed person in this era of skyrocketing property prices to make the whole payment and own the keys. Home loans are the most preferred mode of finance. As a borrower when you take the loan, you need quality amount of time in repaying the loan amount along with the interest. Those magical figures in your credit score card can work wonder for you, by winning you a maximum of 30 years of loan tenure.

If you are planning for getting a home loan, then pull the reigns of your unnecessary expenditure. The credit card that you took to enjoy your age can be a helping hand or may be a trap to pull down your credit score. If you own one, here is a tip never spend more than 50% of the credit limit and pay the credit card bills in time. By improving your expenditure habits you can improve the bank statement, which will help you to get the best loan suitable for your purpose. Nurture the savings habit for your own good.

Role of down payment in your home loan.

Home is a place where you bask in the love & affection of your family. But the sense of self-accomplishment you feel to own the roof under which you create memories with your family has no comparison. To buy a home that you can call your own or any property in this era of escalating property prices is no longer a difficult task with the easy availability of an hdfc home loan. Majority of the people with basic loan eligibility and affordability can buy their own house, owing to the lowering interest rates. This easy availability and assimilating EMIs, often results in excess outflow of money in the form of interest cost.

Earlier people used to wait and save money to buy or build a house, but nowadays the working class doesn’t wait for the perfect age, they are investing money in paying the EMIs to pay the hdfc home loan for the house they own. It helps the borrowers to leverage the future income in a proper direction for lifetime investment. When you take a loan for buying your house, you have to pay certain minimum percentage of amount as margin money from your pocket to the builder, after which the remaining amount is paid by the lender. This margin money is termed as down-payment in housing loan terminologies.

The percentage varies from one lender to the other depending on the loan slab; it generally ranges from 10-40%. It is one of the essential factors to qualify you for the housing loan. On many occasions we find it difficult to arrange the funds to pay the margin money, here is a list of things that can help you to cope with the down payment burden:

• The simplest way to accumulate funds to pay the margin money is to build a corpus from the very beginning of your professional career. Nurture the habit of maintaining a budget & monitoring the cash outflow. This habit can help you to save the pennies, which can help you in future to pay the margin money. 
• There are many lenders in the market who provides proportionate release option, in which you can make down payments in portion for the under construction projects. The developers must be affiliated by the concerned lender. This helps you to pay the margin money in fraction instead of lump sum.
• You can invest in short term equity funds, shares & bonds; in order to use the matured amount to pay the down-payment. If the borrower has a stable job profile, then he/she can go for a loan from their provident fund.
• Take help of your parents & family members to pay the margin money.

After going through the above mentioned ways to cope with the margin money payment, now we would provide you certain benefits for paying maximum amount of margin money, for taking the hdfc home loan:

• As you pay the maximum amount, the borrowed amount is lessened. As a result you have lesser debt fund to pay off.
• Lower loan amount easily qualifies you to get lower interest rates on the hdfc home loan.
• Lenders give more preferences to the loan applications which has lower requirement of the loan amount, so your application gets approved quickly.
• The processing fees automatically comes down, when you have lower debt amount on your name.

Housing loan is essential to buy a home in this market, but down payment is necessary to get an hdfc home loan. So start saving money to enjoy a hassle free loan term by paying maximum margin money.

Every home buyer should use EMI Calculator tool.

Are you planning to buy a home or already a homeowner, this online calculator can be of great help in designing your monthly budget and channelize the funds accordingly. Home loan is an affair of lump sum amount of money, a little mismanagement in fund can create a tug of war between your savings and expenditure. Experts advise borrowers to plan their loan term in such a way that they don’t find it difficult in carrying forward the repayment process. Before the introduction of the HDFC EMI Calculator, the borrowers had tough time in calculating their EMIs and tallying them with the payments they make. The mind boggling calculations were often error prone leaving the borrowers at the mercy of the financers in getting the EMI structure, that varied depending on the balance amount, present interest rate (in case of adjustable rate) and remaining installments.

This online calculator increases the transparency in the EMI payments, because when you have an amortized table before you, you can directly approach the financer for your queries with a valid figure. This gives you quantum amount of mental peace; because you know what you are paying and can plan your savings accordingly after keeping the EMIs aside.

The online HDFC EMI Calculator has the following benefits:

• You can use the tool free of cost.
• It saves you from wasting time in big & confusing calculations.
• The tool provides you an error free figure depending on the figures you fed in.
• You can have the amortized table of the remaining EMIs that helps you in building funds accordingly.
• You can try different figures and combination to have the blueprint of your monthly expenses.

The long home loan tenure can be exhaustive or hassle-free; both depend on the amount of preparation you have, to take forward the monthly installments. When you have taken your home loan at an adjustable rate of interest, it is obvious that the rates will fluctuate depending on the market condition, financer & government policies. With the change of interest rate, the EMI also changes, similarly with each installment you pay your balance amount & the number of installments comes down affecting your EMI. All these calculations physically, can lead to bewilderment. So to have an exact idea it is wise to take the help of the budgeting tool available at the finger tips.

You don’t have to go to your financer for getting the tool; it is available at your tips. The financers know that it is a mentally painstaking task, for the internet savvy, sky-rocketing generation, they prefer everything at the finger tips. Keeping this in mind the financers have introduced, this useful budgeting tool; this solves your EMI calculations within a wink. Just visit any aggregator site or the website of the financer and click on the link to HDFC EMI Calculator and feed in the balance amount, interest rate and number of installments and get the EMI easily.

For your home loan endeavor use the EMI calculator.

Most of us always try to plan our things accordingly, that helps us to be prepared with the back-up plans when required. Then how come the biggest venture of your life, the home loan endeavor can go unplanned? HDFC EMI calculator is the perfect tool for people who believe in planning before executing. Unplanned loan tenure can dent your finances and increase your loan burden. For taking a wise and informed decision you need to plan properly. The borrower needs to evaluate his affordability before taking the loan, so that he doesn’t end up in financial crisis staking his property and future. This tool can be of great help for your home loan venture and evaluating your affordability as the borrower.

One can use this online tool anytime free of cost to get the EMI value for repaying his home loan. The home loan comprises of accrued interest for a stipulated period of time. It’s best to know your capacity before taking the loan and enjoy your new home peacefully without straining yourself with the EMI every month, especially when other financial emergency knocks. This calculator helps you to take a step ahead in deciding on the home loan for which the borrower wants to apply.

Some of the benefits of HDFC EMI CALCULATOR are as follows:

• Your EMI calculation is done within few seconds.
• Different combinations of principal amount, interest rates and loan tenure can be tried.
• The calculator is easy to use.
• Error free calculations of the inputted figures.
• You can use the calculator free of cost 24*7days owing to online availability.

The technology advanced generations have enough money, but they don’t have time to spare. Remember hard earned money is valuable for everyone and we must make sure that we don’t decide anything in haste that may affect our financial profile. In many instances we see that, tempted by lowering rates people make haste in buying a property, without any plans. When the market condition fluctuates their monthly budgets are very badly affected because of an unplanned decision.

In case of a planned borrower who had calculated the EMIs earlier, they can adjust the financial sails according to the market flow and very easily pass through the phase with little adjustment which is better than struggling with the fluctuations.

The calculator can give you the scope to craft your loan term according to your financial profile and affordability. You can take few steps to reduce your interest cost like:

• Increase the down-payment amount.
• Decrease the loan tenure.
• Try to increase the monthly EMI with increase in affordability.

Before taking the loan just utilize your day off in doing some online research about the financers and their home loan nitty gritties after that calculate your EMI with the property price excluding the margin money, present interest rates and the loan term. With rough idea you can plan your loan term perfectly. Utilize the tool for your own benefit and enjoy building home from the concrete structure of a house with your loved ones.

Here are 5 things to do before applying for a home loan.

Most major life events call for preparations. In our childhood, we prepared months in advance for our exams. Athletes prepare themselves before a major event; we prepare ourselves before an interview, so on and so forth. The truth is preparation ensures better execution and this hold true for many walks of life, even when applying for a home loan. In fact, sound preparation will ensure a home loan journey without any unexpected hiccups. This article will give you 5 ways to prepare yourself for a home loan.

The approval of HDFC home loan is highly dependent on your credit score. Therefore the first thing to do is work on your credit score. Check your credit score independently, see where you stand and then make plans to improve it. One way to do this is to make your credit card payments on time. If you have any debts, make sure these payments are also made on a timely basis. Try to stay under the credit card limit and use your oldest credit card whenever possible. Working on your credit score before applying will ensure your home loan application is approved in a speedy manner, it might also bring down your interest rate, or at least it gives you the power to negotiate it.

The next thing you can do is start saving for your down payment well in advance. Larger down payments will again speed-up the approval process. It will also lighten the burden of your home loan with a smaller EMI. Also since the interest is calculated on the loan amount, having larger down payment also helps you save on interest payable. After all, saving on your own is much better than borrowing and owing more.

The next step is to compare the providers of HDFC home loan. See their interest rates, their charges, their tenures, etc. This will allow you to choose from the best. Just finalizing on any lender might land you in jeopardy later on and force you to go for a complex balance transfer process to switch to another lender.

Once you’ve done the above two things, you can then use an EMI calculator to plot the repayment schedule of your home loan. Remember, HDFC HOME LOAN requires a lot of planning and the base to this planning is an EMI calculator. It will provide you a near-accurate EMI amount basis your loan amount and tenure. Key-in these details and hit enter, it should provide you the complete amortization break-up of your repayment schedule. Armed with these numbers you can budget your monthly income to cover your EMI without straining your lifestyle costs.

Lastly, you should read the offered documents carefully. Try consulting a financial expert to help you better understand the terminologies and intricacies of the document. Leave nothing to chance and understand everything before you sign your name on the dotted line.

Following these few tips before applying for HDFC home loan could help you with a smooth home loan process without any unexpected bumps.

After all the hard-work you deserve your own home

Home is a place where you bask in the affection and care of your family members, basking under one’s own roof can give unparalleled sense of accomplishment and security. When the property prices are increasing like the speed of a new SUV car, buying a home all by ourselves is not a cup of tea for the middle class strata of the society, which is the majority count. But home is something that is not only for your comfort, it is a necessity. After working so hard; every individual deserves to own a home for their family. The government and bank policies are making every conscious effort to help the common men to get their home with a home loan.

Every individual is unique, similarly the requirement of each borrower is different; to cater to different need financers are providing different home loan. You can get a home loan for buying a ready flat, resale property, under-construction property, a plot of land or to build a concrete structure on a plot of land and to extend or renovate an existing property. Your savings habit from the very beginning of your career can get you a good credit score to get a suitable loan. Another benefit you get by saving early is that you can save lump sum amount for your down-payment. Both these factors can not only help in your loan process but it will also help you to get a fair rate of interest and maximum loan amount according to the loan amount slab.\

Home loan are creating revolution in this age of zooming property price. Most of the salaried or self-employed people prefer home loan for funds to purchase their home. Why should they not? Because they can avail several of benefits like:

• Get lump sum amount of money to buy their selected property.
• With the lowest interest rate in the history of home loan, the interest cost has reduced.
• They get loan tenure of maximum of 30years to repay their debt.
• Get a tax benefit on the paid interest.

When you are getting the scope to buy your property by repaying your EMIs in time, then it’s wise to go for a loan while enjoying the benefits. The EMIs can easily adjust with your monthly budget, which is bit more than the monthly house rent you pay.

Before getting the home loan select your financer diligently after doing in depth online research and visit at least two to three financers, that are established and RBI authorized. Then compare the interest rates, processing and other charges, loan tenure, loan amount disbursement timing and debt repayment options.

If you consider few things, then you can ease off the debt burden, try to cut short the interest cost by paying maximum margin money, lessen the loan tenure and to some extent the rate of interest also plays a role, take the adjustable rate which is lower than the fixed rate. A tip for the potential borrower is that only go for adjustable rates if you can afford the rates when it increases depending on the market health.

EMI Calculator: the user friendly budgeting tool.

Home loans have made it easier for all the people from every strata of the society to own a home according to their financial profile. The people with a fixed source of income keep the home buying wish in the back burner owing to ever rising property prices. Earlierthey used to guesstimate the home buying expenses and kept on postponing the plan. Nowadays the lower home loan interest rates are encouraging the potential homebuyers to invest in the immovable properties. But some fence sitter possible borrowers are still waiting for the rates to come down, this happens when you cannot craft your budget accordingly. The online EMI Calculator in the financers’ websites and the aggregator sites can help you in crafting your debt repayment according to your affordability and financial profile.

When you plan to purchase a home you must ask yourself one thing; “are you loan ready?” if the answer is ‘yes’ then confirm the basics of a home loan. Some basic features are:

• You must have a good credit score.
• Maximum amount to pay the down payment.
• A stable job and monthly source of income to complete the tenure without being a defaulter.
• Keep in mind that the EMIs may absorb 30-40% of your monthly income, prepare yourself in such a way that your other financial commitments should not suffer for your loan term.

Getting a home loan is not a difficult task owing to numerous financers available in the market and the easy RBI & government policies, which are crafted for the borrowers’ convenience. But the loan repayment tenure can be exhaustive in case your monthly budgets are not set according to your EMI. To set the budget you need to calculate the EMI accurately but the manual calculations are generally confusing task, as a result chances of some loophole remains. To help the borrowers and help them in setting the budget, the financers are providing online EMI Calculator in their webpage. It is a tool to make the EMI calculations easier for the potential borrower.

You have to enter three figures in the given calculator, for calculating your EMI: the balance loan amount, interest rate and the loan term/number of installments. When you use the EMI Calculator you get few benefits like:

• The mind boggling calculations are done within a wink.
• The EMI values you get are accurate, depending on the inputs you feed in.
• Before hand EMI calculations help to craft your monthly budget accordingly.
• You can try different combinations of loan amount, tenure and interest rates, which would have been a difficult task in case of manual calculations.
• You get an amortized table for your remaining EMIs.

Home loan is a matter of lump sum amount, if it is planned and crafted accordingly then you can minimize the interest cost. For example if you take the loan for short tenure, though you have to pay high EMIs but the interest cost is reduced. Similarly if you take loan for lesser amount by paying maximum amount as down payment then the interest cost is reduced. With the help of EMI Calculator your term hassle-free.

Things to consider before taking the loan.

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

It’s a good idea to use EMI Calculator before taking the loan.

Hey there budget friendly person! Here is an online tool to help you calculate your monthly expenditure in EMIs before you get your home loan. Now you must be thinking that why should you calculate, when the financer will provide you the figures of monthly EMIs? The answer is that your calculations beforehand will help you to check your affordability to carry forward your debt repayment without being a defaulter. You can plan your savings accordingly. Just visit the online sites of the financers and use it for once, then you can understand it clearly. Before taking the home loan the three factors you emphasis are the principal loan amount you would get, the rate of interest you have to pay and your loan term. You require these three factors mentioned to calculate you EMI the equated monthly installments.

Previously people used to do the head scratching calculations manually spending hours in doing those mind boggling equations unless you are a matheux. To make it easier for you financers are providing online EMI Calculator, to make easy calculations for the EMI. As a monthly EMI can absorb almost 30-40% of your monthly expenditure, it’s better to check your financial profile before plunging into the home loan venture. Because a single skip of EMI owing to shortage of funds can pull down your credit score affecting your loan profile for future processing.

Home loan is about a lump sum amount, so its better get financial stability and prepare skillfully to have hassle-free debt tenure from your side. It’s your responsibility as a borrower to pay your EMI in time, despite your financial attention for other responsibilities. This needs proper planning and execution, now don’t worry about all these heavy terms of debt & EMI. Though financers earn profit by giving you a loan, but they even take every possible step to ease off your debt burden. The EMI Calculator tool is one such proof. After calculating the EMI you may take the loan or not, so financer is not forcing you to take the loan, but guiding you to make a proper decision.

This tool is helpful because of the reducing balance amount with each installment, in case of adjustable rate the fluctuations can be calculated efficiently and the reducing loan term; that effects the EMI calculations.

The tool is for your own benefit; just have the figures with you: the principal amount you are planning to take after paying your down-payment, type of interest rate you prefer and the loan tenure up to which you want to stretch your debt. Once these three figures are with you, just input the values in the tool and get your calculated EMI within split of seconds. It helps you to get the amortized chart for the whole tenure by sitting in your home.

Getting a loan is easy, but carrying the repayment term smoothly with monthly EMIs is exhaustive, it’s better to plan, prepare yourself financially & mentally and then join the home loan bandwagon. The above mentioned tool is of great help for the borrowers. It helps to plan your savings to reduce your loan term and prepay the debt at possibly short span reducing interest cost. Though the calculations are accurate but it’s better to cross-check with the financers to be in the safe-side.

Know your emi before you pay.

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

Role of the financer in home loan.

The home loan interest rates are lowest in the history nowadays; before you get inspired with these luring rates and join the bandwagon keep in mindthat interest rate is a part of the loan. There are several other charges and elements associated with this loan. Most of the borrowers hung up with

The interest rates when comparing different financers. Taking this train of thought further down the track, there are processing fees and other charges that will give you an idea of the overall loan charges. Though, interest amount holds the second chunk of your loan after the principal amount but other charges are also important.

Let us understand rest of the charges other than interest rate in home loan.

Processing fee: Ranging from.5-2.5% of the principal amount, it is a significant cost in addition to the loan interest payment. Though it is onetime payment but it is not refundable. By any chance if your loan is rejected you will lose the processing amount.

Prepayment charges: these charges are applicable in case of fixed rate of interest. As a penalty for fore closure you pay extra amount than the balance EMI amount.

Administrative charges: this is also one time charge depending on the loan amount. It is also not refundable.

Swap charges: these charges are levied in case of switching the loan account from the existing account.

Late payment charges: in case the borrower misses the due date, the lending institute punches a penalty of 2-4% on the overdue amount.

Miscellaneous charges: documentation, stamp duty and other charges come under this charge.

These are the extra charges you have to pay along with the loan & interest amount. Though most of them are paid once, but is not that low to be overlooked. A good financer will keep each and every transaction transparent.

The financial organization you sign for your home loan has a great role in your life. So choose the financer diligently, a good financer will offer quick loan disbursement, competitive rate of interest, transparency in the charges levied and most important is the flexible repayment options to ease the debt burden.

You have to prepare yourself properly to prove yourself a worthy borrower with good credit score, a stable income to pay the EMI on time. The road of loan tenure can be hassle-free only with the mutual understanding of the financer and the borrower. If the financer is disbursing the loan amount in time, then it’s the borrower’s priority to repay the EMI in time.

Getting a home loan is not a hard task, but to commence the debt journey is exhausting. Expert advices the borrowers to limit the loan amount as much as possible. That doesn’t mean they have to compromise with their dream. Prepare yourself and take the decision only after evaluating your affordability to complete the loan tenure without being a defaulter. Don’t jump into the bandwagon without proper safety measures. Here your safety measure is good amount of money for down payment to reduce the loan principal, a good credit score to win the financers’ confidence and capability of repaying the EMI regularly along with saving amount for freeing yourself from debt.

Things to know about home loan EMI Calculators.

A home loan is a good decision, but it’s also a decision that needs to be backed by a good amount of foresight. Before applying for a home, you should know the amount you can afford, the ideal tenure and the EMI your income can sustain. Previously, you would either use all your mental capabilities or rely on tedious excel formulae to help you out. However, times have changed and you can now carry out these calculations in a matter of seconds, without the need of mentally racking your mind. Wondering how? It’s simple, just use an EMI Calculator.

These calculators are electronically engineered tools that help you calculate the EMI of your home loan. Simply key-in all the factors such as the amount you need to borrow, the interest rate you are comfortable paying, the tenure that suits your requirements and hit enter. The calculator will immediately provide you an EMI amount as per the variables you’ve input.

Knowing the EMI can provide you a host of benefits. Firstly, it helps you decide if your income can support a home loan right now. If your income can support the EMI amount, you will know how much to set aside each month and thus plan your repayment before even applying for the loan. It allows you to adjust your expenses so as to make room for your EMI repayment. Once you know the loan amount you can afford, the chances of your home loan are also improved. This is because the lender sees that you are borrowing within your means and hence the chances of you defaulting are less. Knowing the amount you can afford also helps you arrive at the down payment you will be required to pay. You can then keep this amount ready, which will again increase the chances of your loan being approved.

Most leading lenders will have EMI Calculator on their website. All you have to do is log on, type in the values as mentioned before and hit enter. The calculator will do the rest and present the EMI amount in a matter of seconds. You can also go to home loan aggregator sites for an independent calculation. Some sites will even give you a detailed breakup of your entire loan repayment schedule with the opening and closing balance after payment, the breakup between interest repayment and principal amount repayment. Further, some calculators even take into consideration the processing fee you are comfortable paying to provide all the more accurate calculations.

Using an EMI Calculator helps eliminate financial turbulence caused by a home loan. They allow you to systematically plan for your home loan. It ensures you don’t borrow passed your capabilities and safeguard you financial setbacks of a home loan. If you’re looking for a smooth home loan journey, it is a must use tool. Using this tool will ensure both your heart and mind are at peace during the entire tenure of the loan.

Importance of credit score in home loan.

The home loan which you are thinking of taking to purchase the house you cherish is sanctioned only after you fulfill certain basic criteria. It is the combination of few factors like your monthly income, affordability of repaying the loan amount in time and the credit score of the borrower. In this article we will discuss the importance of credit score in getting a loan for buying your dream house. It is one of the important factors that determine your eligibility in getting the loan and also the interest rate at which the loan will be sanctioned. The credit score is basically a certificate for the behavior of the customer as a borrower.

When a borrower is applying for a home loan and wants to avoid the prospect of loan rejection, he/she should understand the role of credit score in getting the loan sanctioned. If you have gone through an ad where the financers jumps to the customer with a credit score of 750 and you wondered what is it and how it will help you to get the best home loan then you will get your answer here. A good credit score for getting the loan is 700+, closer the score towards 900 more is the chance of getting a suitable loan. With higher score the customer can avail various attractive offers like: lower interest rates, maximum loan amount, easy documentation and longer loan tenures.

The very first thing the lender notices in your loan application is the credit score. There is a good chance of rejection of the application with low credit score. But an application with good credit score attracts the attention of the lender and proceeds further to check the credit worthiness of the customer before sanctioning the loan application.

Potential customers with low credit score can improve their score with the following steps:

• Avoid late and missed payments.
• Balance between secured and unsecured loans should be maintained.
• Check the score on regular basis keeping an eye on the credit report.
• Don’t take too many loans at the same time.
• Try to spend less or maximum of 50% of your credit limit.

Checking the unplanned expenditure can help you to improve the credit score. The low credit score customers are considered to be high risk borrowers with the history of being a defaulter, the lenders may not entertain the loan application. High credit score testifies your responsibility as a borrower with low probability of being a defaulter this will help the application to win the confidence of the lender.

If you are planning for a home loan and want to improve your credit score, then take the help of a professional credit management company, who will guide you to build a required credit profile and make you loan eligible. A good credit profile now can help a hassle free access to the credit score in future.

Before applying for the loan amount to purchase the home you want, as a borrower makes yourself worthy enough with stable job, affordability for paying the monthly EMIs and a good credit score. Clear all existing debts before plunging into the greatest loan venture. This loan tenure is enough to absorb 30-40% of your monthly expenditure. So if you wish to achieve the greatest accomplishment of your life then don’t let a single stone unturned to have a hassle-free loan term.

Home Loan For Your Dream House.

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

Know your EMI before you pay

At the age of thirty my friend was planning to buy a home, after getting his second promotion. His father suggested that it would be a good investment, because he is young enough to take a home loan and complete the loan tenure in time. Since, he had no experience of any kind of loan like education loan or any kind of personal loans so he was bit confused. He decided to do some online research work before jumping into the bandwagon of home loan customers. After combing through the aggregator sites he found that different financers offered different interest rates, some as low as 8.40%-11%. The loan term and the company terms and conditions also varied. Some promises from some financers seemed too good to be kept.

Amongst the various financers he chose few established institutes, as he was smart enough to understand that enticing figures would not be beneficial. After understanding the whole process the next factor he was concerned about was the EMI repayment. Because it would count almost 30-40% of his monthly expenditure, and a beforehand monthly figure of the EMI would be of great help. The solution to his concern was present in the official website of the financer- the EMI Calculator. It is an online calculator that would give the approximate value of the monthly EMI after entering the principal loan amount, annual rate of interest and the number of monthly installments.

He was very happy with the benefits of the EMI Calculator like:

• It gave the exact value of the EMI he has to pay against the principal loan amount. Unlike the traditional method of the physical calculations there is no chance of errors unless you enter a wrong value.
• With three simple inputs of the principal, interest and tenure you get the accurate calculated monthly EMI.
• The whole calculation is done within split of seconds.
• It’s a comprehensive tool, where you can try different combinations to find the best suitable value.
• This brilliant handy tool is a free online service.

This tool with the aforesaid benefits helped my buddy to choose the best suitable financer with a perfect home loan for his greatest personal accomplishment. He calculated his EMI with the online EMI Calculator and tailored his loan structure accordingly. Before he used this tool he was thinking of taking a maximum amount of loan by minimizing his down payment amount. But after using the calculator, he cut the loan amount and increased the down payment value fortunately; this helped him to cut short his interest cost.

The calculator provides an amortization table that gives a clear financial and chronological idea of the loan repayment structure. It is the debt repayment schedule for the entire loan term.

He was thinking of increasing his loan tenure owing to lower EMI cost, after calculating the interest cost for the maximum loan term he found that, though the EMI was low but the interest cost that he has to pay was much more than shorter loan term.

This home loan EMI Calculator proved to be a great friend in need. It guided my friend to set up his monthly budget accordingly gifting him hassle-free loan tenure. So as an existing home loan customer he suggests each potential borrower to use this tool beforehand for their own benefit without waiting for the financer’s declaration of the monthly EMI. You know your EMI beforehand yourself.

Eligibility for a 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 home loan calculator.

How an EMI calculator can help you plan your future.

Before we get into what this calculator is, let’s understand what an EMI is. EMI stands for Equated Monthly Installment. It’s the amount you need to pay every month in order to pay back the loan amount. Your EMI includes the repayment of the principal amount and the interest payment on your home loans outstanding amount.

Getting back to the topic, they say success doesn’t just happen, it needs to be planned. This couldn’t be truer when it comes to planning a successful home loan strategy. Because getting a home loan is more than just filling out the paper work & applications properly. Rather, to ensure you have a smooth home loan journey, a certain amount of foresight is essential. An EMI Calculator can go a long way in providing you the necessary foresight required to plan every step of your home loan journey and this article will help you understand what it is, the benefits of using one and how it works.

An EMI Calculator is a tool that helps you arrive at an EMI you can expect to pay for a specific loan amount and tenure. Arriving at an accurate EMI amount will help you plan your repayment strategy over the tenure of your loan that could be 10, 15 or even 20 years. This could save you from a whole a lot of financial turbulence and help you smoothen out every wrinkle in your home loan planning.

When you use such a calculator, you get three major benefits. Firstly it helps you plan finances by enabling you to decide the amount of EMI you can pay every month without straining your financial wellbeing. A calculator also helps you arrive at an amount you can afford to borrow. This will help you apply for the right loan amount and in turn increase your chances of approval. Using a calculator also helps you arrive at the down payment you will require and help plan your overall home buying budget.

How does it work? It’s actually very simple. Just enter the tentative loan amount you require, the interest rate you are comfortable paying, and the tenure you wish to take loan for. Once you’ve got all these numbers filled in, the calculator will tell you the EMI you would have to pay.

For instance, for a loan amount of Rs 5croreat and interest rate of 9% and 30 year loan tenure, you can get Rs.4, 09,527 as your EMI.

Wondering where you can find such calculators? Well you actually have a plethora of choices. Most leading lenders will have an EMI Calculator on their website. If you’re looking for an independent calculator, you can turn to one of the many home loan aggregators’ sites, they too have a calculator you can use to plan your finances.

Remember, this one simple tool can make things much easier and will save you the time and effort of manually calculating your EMI through mental racking or complex Excel formulae.

Things to consider before taking the loan

If anything goes parallel with home loan then it is marriage. Both involve huge finances, emotions and a long time commitment. Don’t let this push your thought train to frenzy.  Just like the marriage with an ideal partner can turn out to be the best decision, similarly investing in a property can. From the various lending institutes sprawled in the nook and corner of the city, borrowers choose different institute depending on the interest rates offered, loan tenure and the terms and conditions. It is not necessary that the same loan is applicable for all borrowers, depending on the eligibility of the borrower and the type of loan he or she selects, the lender they choose it varies.

Before applying for home loan, consider the following:

Are you in a situation for long time commitment?

Taking a loan is not the only thing that matters, repaying the monthly EMIs are most important. It calls for a long time, at least a decade. Evaluate your current source of income and its efficiency in fulfilling the EMI commitment. Plan your budget accordingly and start saving immediately.

Will the loan commitment affect other responsibilities?

Investing in a property is important but it’s a part of the dream. There are other responsibilities which is more important like education of your child, health of your family, etc. these are large and important expenses. Take the decision of going for a long tenure after considering your duties towards your family.

Is the loan offer luring?

There are various loan offers available in the market which appears lucrative to the potential customers. The loan market is a competitive market and various institutes attract customers with various offers to stand out in the market. The prudent borrowers will dive deeper into the surface and would not be misguided by the enticing figures, which appears too good to be true. Grab the offer only after you are sure about the associated charges and caveats.

Did you researched and taken experts advice?

Research about the loan can reveal facts, which will help you take a confident decision by negotiating better. In this competitive and ever changing time, it is better to view things from refreshed prospective. More updated your research, more it will be helpful for you. In this digital market era every information, expert advice and reviews from existing customers is available in your fingertips. This will help you frame your process.

The organizations offer you the home loan for buying properties under construction, a ready flat from the listed builder or a plot of land. Loan is even given for extension of present construction or renovating a property. With the basic eligibility criteria, your credit score is a deciding factor for loan sanction, amount of loan and the rate of interest. Try to maintain a good score. When going with the home loan, try to clear all pending debts so the loan burden does not pull you down. Investing in buying property calls for a good deal amount of financial attention, so it’s better to clear this debt first, before going for some other loan. EMI payment will take away a major portion of your salary and saving so it’s better to clear this debt first for hassle-free loan tenure.

Make your home loan journey smoother with EMI Calculators.

They say tomorrow belongs to those who plan for it today. It’s a quote that stands true in all walks of life, including your journey as a home loaner. As you may know, taking out a home loan isn’t a decision to be taken blindly; it involves a lot planning and future foresight. And so after you’ve fixed on property you want, the amount you need and probably the financial institute you wish to borrow from, the last and most vital component of planning your repayment remains. Physically jotting down and calculating your repayments is a tedious task to say the least, but there is an easier, more convenient way to do this, the home loan EMI calculator. This article will look at what a home loan EMI calculator is, how it works and what are the benefits of using a home loan EMI Calculator.

So what is a home loan EMI Calculator?
In the not so distant past, one would calculate his or her EMI using a pen and paper or using formulas on Excel. This allowed for a margin of human error and provided an EMI that was, albeit close to the actual EMI, but not 100% accurate to an EMI the bank required you to pay. So as to make this calculation easier for user, most banks and non-banking financial institutes have introduced home loan EMI Calculators in their website. This tool generates an accurate EMI based on your preference in regard to the loan amount you wish to secure, the tenure as to which you wish to take the loan for and the interest you can afford to pay.

How does the home loan EMI calculator work?
Unlike the mentally racking procedure of physically calculating your EMI or using tedious formulas on Excel, leading financial institutes allow you the comfort of arriving at your EMI by just feeding in few details pertaining to your loan on their website. Most home loan EMI Calculator take into consideration the loan amount you wish to secure, the tenure for which you wish to take the loan and the interest you are most comfortable paying to arrive at the EMI you will end up paying. Some institutes might also take into account the processing fee you are comfortable paying. Put in these details into theEMI calculator and an algorithm does the back work to form an EMI amount based on the variables you’ve fed into the calculator. Aside from the installments, leading financial institutes have designed their home loan EMI calculators to provide additional details such as the breakup of the payable amount and the quarter by quarter graph of loan payment estimates.

What are the advantages of using a home loan EMI calculator?
The obvious advantage with an EMI calculator is that you know the accurate amount you’re expected to pay. Braced with this knowledge you can make plans to set aside funds to repay your loan without stressing your wallet. Another salient advantage is the higher approval rate, because of the sound calculations, you can apply for the loan within your financial reach, and seeing this, financial institutes are more comfortable issuing you a loan. The home loan EMI Calculator not only helps calculate EMIs and plan your finances, it also provides you with an element of complete peace of mind.

Now that you’re armed with the precise knowledge procured from the home loan EMI Calculator, all that’s left for you to do is to approach the financial institute of your choice, apply for a loan and enjoy the comfort of your dream house which is now closer to reality than ever.

Here’s why the Home loan EMI calculator is such a helpful tool.

The amount of money you borrow from the financial institution to invest in some immovable property is termed as home loan. Banks and NBFCs lend money to the borrower at a fixed or an adjustable/floating rate of interest.The home loan is given for the properties like; the already constructed property, flats, under construction property, buildings that are to be constructed over pre-owned properties and renovation of existing property. The amount one can avail depends on the job stability of the borrower, the CIBIL score,the location of the investing property, the listed builders, and the status of the co-borrower. The loan eligibility increases with addition of the earning family member like the spouse, father, mother brother or any earning co-applicant as the guarantor.Due to low rate of interest charged by the banks and NBFCs in comparison to other loans, like the personal loans and education loan, the borrowers make a mistake of applying for a large amount. When the burden of EMI falls then they realize their mistake. To save the borrowers from committing this mistake, lending organizations have come up with the home loan EMI Calculator.

Manually calculating the EMIs with reducing principal amount over the passing yearof the loan term tends to be problematic task. It ends up in a financial mess. Home loan EMI Calculator from different lending organizations is a solution to this problem. The principal amount on which one takes the loan reduces with the payment of EMIs every year. So, the rate of interest also reduces leading to a savings of 0.5-1.0% approximately.

After taking the home loan, the crucial part of the procedure is repayment of the EMIs. So beforehand planning can help the borrower to plan the savings procedure accordingly and complete the process hassle-free. A clear knowledge of the amount to be repaid towards EMI can help to take an informed decision. We should calculate the EMI with the home loan EMI Calculator because, it helps determining the loan amount, it assist in checking the interest percentage, the tenure of the loan can also be determined, it checks the affordability. With the help of the calculator we can compare and select the best lending institution that can offer additional benefit. The decision of taking the fixed or floating rate of interest becomes wiser. Once the EMI amount is decided the selection of the loan will be easier and faster.

It is always commendable to be ready for the wintry days, when the market rate fluctuates, any accidental situation knocks. The accurate calculation which results to a handsome saving can help us to overcome the situation without being enlisted as a defaulter. The home loan EMI Calculator is a boon for the borrowers in the age of recession.

A fair understanding of the ratio of principal amount to the interest due, based on the effect of the home loan tenure and interest rates is provided to the borrower with the use of the calculator.

The calculator will give an approximate figure for the total installment along with complete break-up of the home loan repayment process. The borrower can use it to gain access to an amortization table to strategize the repayment schedule. With EMI calculator a proper calculation of the amount is done before hand, and the repayment can be adjusted accordingly by the borrower.

Things you need to know before you pay your EMI.

EMI stands for equated monthly installment. It is the amount of money a borrower needs to pay the funding organization for repaying the loan money. The EMI amount includes the repayment of the principal amount and the interest on the outstanding amount in installment. Longer term of loan tenure can reduce the EMI amount. A clear prior knowledge of the amount of repayment can help the borrower to take an informed decision. As the rate of interest fluctuates with the financial health of the market, beforehand knowledge has become mandatory. In order to get the approximate value one can use the EMI Calculator to calculate their EMI cost.

Calculating the EMI manually for the vast amount of loan is often hectic and error-prone. The mind gets screwed with the confusing balance money that changes with every EMI payment. The EMI Calculator gives a clear understanding of the principal amount to the interest due ratio, based on the home loan tenure and the interest rate. In the era of e-commerce, when you can avail most of the facility in just a click, calculating the home loan EMI is no longer a mind boggling job that leads the borrower into a financial mess. The borrower is advised to have a proper planning before he/she chooses the property of interest, they should know the amount he or she is capable to pay as down payment and the EMI charges that pinches less. After doing some online research the borrower should approach the financial institute.

The loan journey is often long and exhausting, so it is good to prepare oneself for the debt free destination. The EMI Calculator is the like a lever that helps you to adjust according to the requirement, like; when the interest rate comes down, one can calculate their EMI and save the remaining money for the future, when the interest may rise. A penny saved is a penny earned. The home loan EMI calculator will give an approximate figure for the total monthly installments along with a complete break-up of the home loan repayment process. One can get access to the amortization table to strategize the repayment schedule in advance.

The borrower has to feed in the principal amount, the loan term, and the interest rate in the EMI Calculator to get the EMI, the borrower has to pay. The financial organization merges all the services under the online umbrella to reach maximum amount of potential customers and offer them a hassle-free loan term for their dream home.

The rate of interest at which the financial organizations give home loans is less compared to the education loan and other personal loans; this often misguides the borrower to take a lump sum amount of loan that ends in digging a big hole in their pocket. It is advisable to have a thorough knowledge about the loan procedure and EMI repayment, so that he can reduce the loan amount and save themselves from being drawn by the debt. Before applying for the loan the borrower will have clear knowledge of the approximate EMI he has to pay with the home loan calculator which is superior to the traditional calculators and manual calculations. Use the feature rich home loan EMI calculator to estimate the EMI amount and have an error free calculation.

8 Home Loan Charges You Should Know.

When you plan to buy a house by availing a home loan, the biggest cost component you are worried about is the interest amount. But apart from interest charges, you will have to pay for a plethora of other charges as well. Here’s a list of fees banks levy on home loan borrowers: 

1. Application fees

This fee is charged by the bank for processing your application. It will be charged upfront irrespective of the fact that whether your loan application is accepted or rejected. It is non-refundable and can go up to 1% of the loan amount. Make sure that you do your research before applying for home loan as this fee is non-refundable.

2. Processing fees

This fee is charged by banks to verify your documents as the process involves people effort and legal charges. The processing fee varies from bank to bank and usually ranges between 0.5% and 1%. 

3. Legal fees

Generally, external lawyers are appointed by financial institutions to verify the documents submitted by you. The fee charged by the lawyer is passed on to you by the financial institution. However, for those properties which have already been approved by the bank, it may not charge the legal fee.

4. Conversion fees

It is the fee that you need to pay to reduce the interest rate. Suppose, you availed home loan at 11% in 2012 and now the bank has reduced the interest rate to 10.25%. So, in order for you to benefit from the drop in interest rates, you will have to pay a conversion fees that will range between 0.5% and 1.0% of the loan amount.

5. Memorandum of deposit of title deed

When you avail a home loan you have to sign an undertaking stating you have deposited the documents of the property with the bank at your will to secure financing from the bank. Government levies stamp duty on this document to register the same and depending on the state you are buying the property in, the duty can vary between 0.1% and 0.2% of the home loan amount.

6. Document retrieval charges

When you avail a loan you have to deposit all your documents for home loan such as the sales deed and the sale agreement with the bank. The bank keeps these documents in a central safe repository which is generally managed by a third party. The central repository may not necessarily be located in the same place as the bank branch. Therefore, when you close or pre-close the loan, the bank charges you document retrieval fee. These charges are generally part of processing fees.  

7. Prepayment penalties

Although no prepayment penalties are charged in case of floating-rate home loans but the penalty is levied on fixed-rate home loan. If you decide to make a prepayment towards your fixed-rate home loan, you will be charged a prepayment penalty by the lender which is usually about 2% of the prepaid amount.

8. Switching charges

If you want to change from floating-rate home loan to fixed rate or vice versa, you will have to pay switching charges. These charges vary from bank to bank and typically range between 1% and 2% of the outstanding loan amount. 

It is imperative that you know these charges. In fact you should ask about any fee or charge that is levied by the lender on you. By doing this you can avoid being over-charged.

{Source: www.paisabazaar.com/home-loan/articles/3683-8-home-loan-charges-you-should-know/}

Why Should You Calculate the EMI before Taking a Home Loan?

Deciding the amount of the loan depends on the affordability of the emi.  Every financial institution will first check how Much Emi An applicant can afford paying and on the basis of the amount of the loan is decided and the home loan is sanctioned.  Thus it is recommendable that the applicant should also check the emi he will have to pay to the bank every month using the home loan Emi calculator.  This will not only help him in checking the Emi That Is payable but also he can check the amount he is eligible for.

Aspects that affect the Emi

Mentioned below are the three main factors that help in deciding what can be the Emi on the loan. 

Income:

Income plays an important role depending on the income the lending institutions render loan to an individual. The emi amount should not be less than 40% of the monthly income of the individual.  This is to make sure that the loan applicant has enough money to meet his expenses. Even though an individual is optimistic about the rise in the income he should also take into consideration factors like the inflation rate, job security and the emergency requirements. The emi should not exceed 40 % of your income. An individual should have at least 15% in his hand to save and use for other purposes.

Changes in the rate of interest:

When you calculate the emi using the home loan emi calculator the interest rate plays an important role.  Though low home loan interest rate might attract you to avail for a huge home loan amount it is not advisable to do so as an individual needs to have some money to be used for emergency purposes.  Also the choice between the fixed and the floating interest rate will help you in saving and you can save on the Emi. If you opt for floating interest rate the percentage of the interest will depend on the market fluctuations and thus the interest paid is generally low.  But for fixed interest rate the interest rate remains fixed throughout the repayment tenure of the loan.  Generally if a person wants to cut down not the interest rate he can opt for floating interest rate.

Expenses related:

 While an individual decides to jot down the expenses it is very important that he needs to calculate the emi using the home loan EMI calculator along with this he can also calculate the monthly expenses that occur for him during a particular month. This will help in planning the month without creating any financial burden on him. Thus, he can make sure that he has enough necessities while he dreams to own a house.

Why is necessary calculate the EMI?

Calculating the emi with the help of the home loan EMI calculator helps in determining the loan amount which is to be borrowed. It is essential to calculate the tenure of the loan to check the affordability of the loan.  It is also necessary to compare the pick the best home loan offered lending institutions which has additional benefits like the lower home loan interest rates

The home loan emi calculator is different from the other types of loans. Thus when an individual is planning to apply for a home loan he needs to decide and make use of these online home loan emi calculator to avoid the further confusion. Earlier the emi was calculated manually which has manual errors. But now a person can simply visit the website and calculate the emi he needs to pay for the next 18 years.