Refinancing Of Home Loan-All's Well That Ends Well.

Many of us are in a hurry to take that home loan. As long as we can repay the home loan   All Is Well. What happens when we cannot pay back the home loan? What happens if I lose my job or if I am faced with a sudden illness and   I am unable to pay back the EMI Calculator?  Is this the end of the road for me?  If any of you have had such as experience what would be your response .Would you have panicked? It would be good to remember that this is not a rare situation. Here banks have customers who do default on their loans as well. Here it is in the best interests of the bank to restructure your loan, as if it fails to do so it would increase the bank’s nonperforming assets.

Which bank would want to see an increase in its NPA? Remember every cloud has a silver lining. I would like to remind all of you that the team of   Financial Planners at IndianMoney.com are always there for you to plan your Home Loan needs in a most efficient manner and are always willing to lend you a helping hand.

How to Refinance Your Home Loan:

• So what should   you do under such circumstances?  Let us consider that you are temporarily not able to settle your EMI Calculator due to a sudden illness. You should then approach the bank in order to restructure your loans. Let us say that you are paying an EMI of INR 8000 for 10 years, and then the bank may restructure it for INR 7500 for say a slightly longer tenure. Here the bank would not lose money as you would repay the amounts over a longer period of time. You are able to get that highly needed   breathing space maybe at a slightly higher cost. Everyone is a winner in this case. If you are stuck in such a situation negotiation with your banker is the best approach. However it is best to follow the prevention is better than cure approach by setting aside say 6 months of EMI Calculator installments in a highly liquid fund for sudden emergencies.

The Balance Transfer (Switch Your Home Loan Option):

What is Home Loan Balance Transfer?

• Here Home Loan Balance Transfer is a refinancing option to get the existing home loan in one bank transferred to another bank in order to avail the benefits of a lower interest rate. Here you can read up the website IndianMoney.com in order to understand your home loan needs.

Why Should You Opt For A Balance Transfer?

• Here the existing   home loan is set at a very high rate and despite discussions with the existing lender or bank there is no response. Here banks may not want to consider the negotiation options available to them and under these circumstances we might need to act in order to protect our interests.
• Here at the time the loan was first taken the options were limited. Now there is vast number of options available to us. We can avail of these options by using the home loan balance transfer option. Here the banking sector has undergone vast changes and we can tap into these benefits in order to avail loans at cheaper rates.
• In many foreign countries after 3-5 years it is very common to refinance ones home loans in order to tap into the benefits of obtaining loans at very competitive   interest rates due to prevailing market conditions. This also helps to pay off   home loans faster.

 Using the Balance Transfer Option as a Bargaining Chip:

• Let us consider the case in which the bank has reduced rates for new borrowers. You are an existing borrower with a high credit score. Here you can approach the bank using the switch your home loan option as a bargaining chip in order to secure a lower rate from the bank.
• Let us consider the case in which we have taken a loan of 15 Years tenure. We still have about 10 years of repayment left. Here the new interest rates offered are 1% lower than the rates offered by our bank. Here we have the Balance Transfer Option where we shift the outstanding loan from our lender to the cheaper lender. Here the new lender will check our repayment history and it is necessary to keep the EMI Calculator statements handy.
• Here as per the RBI circular all banks have waived prepayment penalty on floating rate home loans .Some of the banks have also waived prepayment charges on fixed  rate home loans. Another important factor we need to note is   the Foreclosure charge. These charges apply when a borrower wants to switch his loan from the existing bank to another bank offering lower floating rate of interest or if the person wants to shift to a lesser rate within the same bank. Here the RBI has directed banks not to levy charges for foreclosure of home loans taken on floating interest rate basis. As per the Damodaran Committee report the various banks did not pass on the benefits of lower interest rates to existing borrowers when the rates fell. Such rates were offered only to new borrower’s .Such a practice combined with foreclosure charges prevented existing borrowers from enjoying lower rates with the same bank or switching to a lower rate in another bank.
• Banks charge around 0.5% -1% of   the total home loan amount applied for as a processing fee. It is possible with hard bargaining with the new lender to bring this down or in some cases even waive off these home loan processing fees. Here it is right to remember the phrase ‘Strike When The Iron Is Hot’

 Drive A Hard Bargain:

·         Here it is good to drive a hard bargain by talking to the existing bank. Here we can meet the bank and state the reason for the switching of the loan. Here we state that the current floating rate is too high and I would like to lock- in a lower floating   rate due to my urgent financial commitments and I would like to retain the loan at the same bank rather than shift to another lender. Then settle for a round of discussion and negotiations.

·         Here if we get a better rate in another bank we would like to shift our loan to this bank. We would require a   letter of consent from the existing bank to give the go ahead to shift to a new lender. Here you need to make sure that you get the necessary foreclosure statements, account statements and the list of property documents from your existing bank.

Keep Your Powder Dry (Always Look Out For Opportunities):

• Here when opportunity strikes we need to seize the moment .It is prudent to look around and lock-in the best possible interest rates using the Balance Transfer option. Here a change in the interest rates by even say 0.5% is quite significant over a vast sum such as INR 50 Lakhs. Here Mathematics   might not be the favorite subject for many of us, but a little homework   here can save us thousands of rupees.
• Here we need   to be aware of the lock in period of the home loans. Here banks have a loan disbursement date when they release the payments. For completed buildings this may not be an issue .For an under construction building the bank will disburse the loan in stages. It might take 2 years for the house to get constructed. Here we need to check when the disbursement dates are drawn. Is it drawn when disbursement commences, as disbursement is in stages or when the bank has fully completed the disbursement of the loan. This is very important to avoid loan penalty when refinancing the home loan.
• Do not seek additional sources of credit when your loan is being refinanced. If you require a new car put it on hold until your home loan has been refinanced. Here we need to set priorities in life. There have been cases in which refinancing of home loans has been scuttled because of poor credit scores. This is like jumping   into a river with weights tied around your neck.

Never Change Horses Midstream

Changing of jobs while refinancing of your home loan is like changing horses in the middle of a stream which might result in your drowning. Here we might get a lesser paying job which might scuttle the whole balance transfer process. Here if the pay increases then we might have missed a better home loan balance transfer opportunity or at the very least the whole tedious process might have to be repeated as you might have to resubmit income statements.

{Source: http://indianmoney.com/blogs/refinancing-of-home-loan-alls-well-that-ends-well}

5 steps to follow when your home loan is rejected.

Are you one amongst the many in India whose home loan has been rejected? Well, there’s no reason to be dejected as it is not going to help matters. When your home loan application reads as “no”, you need to read it as “try again”. There is no reason to feel dejected as you are just an approval away from purchasing your dream home. Below are 5 crucial steps that can help you get that dream home after your home loan lender has said no.

Dig into the details

Usually, the letter sent by the home loan lender conveying the rejection is a generic one. Do not let the cloud of disappointment blur your thinking. Instead, you must try to learn the reason for your home loan being rejected. If the letter does not specify the reason, call the concerned officials and try to understand the precise reason for the lender rejecting your loan application. This is very important as it helps you prepare better when reapplying for the loan.

Reduce the loan amount

While assessing your loan eligibility, a strong possibility of the lender rejecting your loan application is because your monthly income is not sufficient to support the required home loan amount. In such cases, it is recommended to rework the loan amount so that the debt servicing ratio can be corrected, which feel make the lender feel more confident in your loan repayment ability.

Pay off existing debts

If you already have multiple loans, the chances of your current payment obligations getting in the way of the home loan are high. This is because it leads to a higher debt to income ratio. Simply put, this means that your debt obligations and repayment commitments are higher than your existing income. And the lender feels that more debt obligations will increase the chances of your defaulting on the payment. The best alternative here is to pay off a few of the existing debts to rectify the situation.

Work on your CIBIL score

Lenders rely on CIBIL score and CIBIL report, as it helps them understand your credit behaviour and credit history. A delay in repayments and defaults result in negative impact on the CIBIL score and a poor score is most often the main reason for home loan rejection. In such cases, obtain a copy of your CIBIL score and seek professional advice on how you can improve it. Remember, it takes time for the revised scores to reflect, so the better you begin to improve your CIBIL score, the more favourable are your chances of getting a home loan approved.

Adjust to make it work

The home loan amount, rate of interest and loan tenure are the main factors considered when it comes to home loans approval. Your EMI is calculated on these factors. Now, for the EMI to be worked out for your income; either the home loan can be decreased or the loan tenure can be increased. Consider all available alternatives too such as another property that is more affordable or other home loans that offer better interest rates.

When applying for a home loan, the key lies in understanding the home loan lender’s requirements and working towards meeting it. A little bit of patience, financial discipline and determination is all it takes to get your home loan sanctioned with minimal effort.

{Source: https://www.indiabullshomeloans.com/blog/5-steps-to-follow-when-your-home-loan-is-rejected/}

Personal Loan EMI Calculator.

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.

EMI Calculator.

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.

Why Should You Use EMI Calculator Before Applying For A Loan?

Loans are an integral part of our lives today. They help achieve some important financial goals which would otherwise not be possible. Be it funding your child’s future education or arranging money for marriage, paying for your dream home or that much wanted car. Whatever the need be, there is a loan for every purpose. There are important terminologies associated with every loan. “EMI” is one such common term.

Loans are repaid in Equated Monthly Instalments (EMIs). Every month a stipulated amount is deducted from your monthly salary towards repayment of your debts. EMIs can either be paid through auto-debit instructions set up on salary accounts or the borrower can send cheques every month. In either scenario, the amount to be paid back is the same, month on month, for the entire tenure. This amount is officially referred to as EMI.

How EMI is calculated?

Primarily there are three factors that are taken into account when computing an EMI. They are:

1. Amount of Loan – This the total amount of money borrowed. In some cases, the loan may be sanctioned for a larger limit however; only a part of it is used so the EMI is calculated not on the sanction limit but on the amount of money actually borrowed.
2. Interest Rate – This is the rate of interest that will be charged by the lending institution on the sum lent. The interest is calculated on reducing balance.
3. Loan Tenure – This refers to the entire period for which the loan has been granted. The tenure in months is used for calculation purposes. Alternatively, this can also be called the number of instalments due.

EMI is calculated as below:

EMI =    P * r * (1+r) n/ (1+r) (n-1)

Where,

P = Principal or Amount borrowed

r = rate of interest per annum

n = number of instalments.

Thankfully in this age of technology you do not have to indulge in manual calculations. You can make use of online loan EMI Calculator to instantly arrive at a possible EMI. Given the calculation above, it is aptly clear that EMIs are directly proportional to interest rate and principal amount, while it is inversely proportional to the loan tenure. In simple words, higher the amount borrowed or higher the rate of interest, the EMI will be higher too. However, longer the tenure, smaller will be the EMI.

For example:

For a personal loan of 1, 00,000 at the rate of 12% for 12 months, the EMI would be = 8884/-. For a personal loan of same amount for the same tenure but at rate of 15%, the EMI would be = 9025/-. For a personal loan of 2, 00,000 at the rate of 12% for 12 months would yield an EMI of 17,769/-. Whereas, for a loan of 1, 00,000 at the rate of 12% for 36 months would spell into an EMI of 3321/-.

Thus you can see how your EMI changes with a change in any of the three primary factors.

Why Calculating EMI is so important?

A lot of people are extremely enthusiastic about getting financed. While they plan extensively on what to do with the funds received, they often go underprepared from the debt-repayment perspective. Knowing what your EMI would be before you have applied for a loan would enable you to budget your monthly expenses accordingly.

People who have calculated their EMIs are prepared for what they are getting into, plan for how their lives will be impacted post the EMI and deal better with the burden of debt-repayments than those who don’t plan enough. Goes without saying, the difference of better planning often shows in better credit scores.

Comparing EMIs on loan offers by different lenders guides borrowers to better deals.

EMIs are calculated in such a fashion that with every installment, a part of the principal and a part of the interest is repaid. Interestingly, and contrary to popular customer belief, during the initial phase of the loan tenure, a larger portion of the EMI is allocated towards repayment of interest. Practically after half the tenure has passed, a larger fraction of the EMI is accounted towards principal.

More of this can be made clear through an Amortization Schedule. This is an important table that shows the break-up of your EMI into interest and principal components, month on month. You can either request for an amortization schedule from the bank you apply to or you can calculate the same using online loan interest calculator. This is another important document you must go through before signing any documents.

Why does the EMI change over the tenure?

Incase during the loan tenure, there is a change in any of the three variables that go into the calculation of the EMI, then the EMI might change. Some of the common reasons are:

1. Borrower prepays the loan – this means the principal amount will fall and therefore the interest calculated on the balance amount will change too. This will bring the EMI down.
2. Interest rate change – If your loan is based on flexible rate of interest then the EMI will be adjusted to account for the change in interest rate.
3. Borrower requests for restructuring of loan and an increase in loan tenure. This is will mean a lower EMI.

Summing-Up

Since computation of EMI is made easy with the help of online EMI Calculator, every person hoping to take an advance must make use of it. It helps in calculating your affordability by helping you understand on what will your left over disposable income ultimately. This in turn helps you to avoid poor credit.

EMI varies with loan tenure and interest rate. Amortization schedule helps the borrower see how much outstanding balance is left. It is especially helpful when the loaned wants to foreclose or prepay the loan. The bottom line of any loan is the EMI. Knowing the EMI keeps the borrower from hitting the bottom.

{Source: https://www.creditsudhaar.com/blog/2016/09/26/why-should-you-use-emi-calculator-before-applying-for-a-loan/}

The road to qualify for a home loan.

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

Tips for Getting a Home Loan.

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

HDFC Home Loan Closure Procedure

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.

A Guide to Secured Loan For Home Owners

When you're looking for a loan, it can often be difficult to decide what sort of loan you should get; after all, there are a number of options available. Unfortunately, not all of the options that you might find will be appropriate to your needs; if you own a house, then you might be best served looking at some of the available secured loan for home owners.

By considering secured loan for home owners, you might open yourself up to lower interest rates and better loan terms than you previously thought possible. Best of all, you'll likely be able to find some secured loan for home owners that will give you a good rate regardless of any credit problems that you've had in the past. To assist you in your search, here are some basic facts about secured loan for home owners that should help you to better understand how these loans work and how to find your best deal.

Why Is Home Ownership Important?

Obviously, when you're looking for secured loan for home owners it's important that you actually own a house. The reason for this isn't that lenders are trying to be elitist, but instead that they offer specialized loans which are based upon the value of the equity you've built up in your house. If you don't know what equity is, don't worry; it's simply a measure of how much you've paid into your mortgage in relation to the total value of the house. Because of the higher value of equity in comparison to many other forms of collateral, lenders are generally able to offer loan rates and deals to individuals who would otherwise not be able to get them.

Does the Mortgage have to be paid in Full?

No, your current mortgage doesn't have to be paid in full for you to qualify for secured loan for home owners. The loan is based only on the equity, instead of the full value of the house... and your equity is only representative of the amount of your mortgage that you've paid. When you take out an equity loan, you likely won't be able to borrow more money than you have equity built up for this reason. If you borrowed more, then you would be borrowing against value that was already tied up in the mortgage.

Do Interest Rates Vary Among Lenders?

Yes, interest rates can vary greatly among different lenders who offer secured loan for home owners. This is the reason that it's important to take your time and select a lender that's truly right for you, meaning that they offer you a good interest rate and flexible loan and repayment terms so as to keep your payments low and manageable. When taking out larger loans or using high-value collateral such as equity, it's important that you always take a little bit of extra time to search for the best loan that you can get.

How Do You Find the Best Loan?

In order to find your best loan, you'll have to shop around at a variety of different lenders and request quotes for secured loan for home owners. Visit several different banks, mortgage lenders, finance companies, and even online lenders, and begin comparing the different quotes that you've received based upon the interest rates and loan terms that each offers. This will likely show you a range of loan offers, and you'll be able to easily pick the offer that has the best rates for you and your new loan.

{Source: http://ezinearticles.com/?A-Guide-to-Secured-Loans-For-Home-Owners&id=1138930}

How to Apply for Home Loans in India

Building their own home is a dream that most Indians share. In fact, it is one of the most highly valued dreams too and rightly so. With real estate prices rising and falling constantly, along with changing interest rates and banking policies, home buyers need to be especially careful while financing their homes.

Home Loan India is pretty much a mandate today for engaging in a transaction that involves as much money as building or buying your own home. Here’s how the process of applying and disbursal of home loans work:

Home Loan Process:

·         Applying for a home loan:

By providing a formal application for a home loan, along with your personal details the bank will judge your eligibility for the loan that has been applied for. Click here to Understand Home Loan Eligibility. The bank will also require a whole set of documents including:

• ID Proof
• Address Proof
• Age proof
• Proof of educational/professional qualifications
• Employment details
• Bank statements
• Proof of income
• Pan Card
• Property details

·         Paying the loan processing fee:

For commencing and maintaining your home loan, banks charge a processing fee that usually amounts to somewhere between 0.25% to 0.50% of the entire loan.

·         Applicant scrutiny and verification:

This process involves the bank gauging the applicant’s ability to repay the amount that is being borrowed. This is based on the amount the applicant would like to borrow, as well as the value of assets that is in possession with the applicant. His/her regularity in the payment of previous loans that they were taken will also reflect on their eligibility.

After evaluation the bank will decide on the principle amount that they can grant as loan.

·         Drafting Home Loan offer letter:

If the bank is satisfied on all counts regarding who you are and your ability to make payments, they will proceed to draft an offer letter. It will contain details of the loan, such as:

• Sanctioned principle amount
• Interest rate charged
• Fixed or floating interest rate charged
• Loan tenure
• Method of repayment
• Terms and conditions
• Special schemes

A signed acceptance copy is then provided to the bank if the applicant finds offers acceptable.

·         Property verification:

Before disbursal of the loan, the bank will ask the legal documents pertaining to the asset in consideration to be turned over for inspection.

·         Disbursal:

If all of the above mentioned processes have been cleared, then the Home Loan will finally be disbursed.

Every new business treats the customer as king. Hence, despite the long Home Loan processes that are usually involved in getting your own housing loans sanctioned, banks today go to great lengths to make sure that there is as little hassle for the customer as possible.

With the dawn of the internet age, the home loan application and disbursal processes are now being hosted online as well. This adds to the convenience factor to this process, which is previously considered long and harrowing, and plagued by constant red-tape.

{Source: https://www.indiabullshomeloans.com/blog/how-to-apply-for-home-loans-in-india/}

Tax Benefits Associated With Housing Loans

Multiple benefits - how?

EMIs (elementary monthly installments) consist of two parts - the interest portion and principal amount. Interest paid is allowed as a tax benefit under section 24(b) (subject to restrictions), while the principal amount repaid is allowed as a deduction under section 80C.

Maximum ceiling on tax benefit

Maximum tax deduction for repayment principal component of home loan can't exceed Rs 1, 00,000 under section 80C. One should keep in mind that other investments/contributions are also allowed as a deduction under section 80C, and this limit of Rs. 1, 00,000 applies to all of them put together.

Housing loan interest deduction, on the other hand, is allowed up to a maximum amount of Rs 1, 50,000 under section 24(b). However, the acquisition or construction of the house property should be completed within 3 years from the end of financial year in which loan was taken; otherwise, the amount of interest benefit allowed is only up to Rs 30,000.

Furthermore, the above tax deduction limit u/s 24(b) is applicable only for self-occupied house property. In case of let-out or deemed to be let out house property, interest is deductible without any limit.

Starting date for claiming tax benefit

Some say that deduction on principal component of home loan under section 80C is allowed as soon as one starts repaying the home loan. Some say deduction is allowed only once the construction is completed. The law isn't clear on the matter; hence the ambiguity remains.

Interest deduction on housing loan under section 24(b) is allowed only on acquisition or completion of the house property. However, interest deduction for pre-acquisition or pre-construction period is also allowed but only after acquisition or construction is complete. It is allowed in 5 equal annual installments. But even after including the above, the total deduction should not exceed Rs. 1, 50,000 per annum.

Source of home loan

Unlike section 24(b), Section 80C doesn't allow tax deduction for home loans taken from friends and relatives. For claiming tax benefit on principal component of the home loan under section 80C, you need to borrow only from the lenders specified in that section. There is no such restriction under section 24(b) of the IT Act for claiming tax benefit on interest component of the housing loan.

Purpose of housing loan - Home purchase / construction vs.

Home improvement Deduction under section 80C for principal portion of the housing loan EMI is not allowed if the home loan borrowing is for the purpose of reconstruction, renewal or repair of house property. Put simply, tax benefit under section 80C is only allowed for buying or constructing a new home. In contrast, deduction for Interest is allowed under section 24(b) even for the loan taken for the purpose of repair, renewal or reconstruction of existing house property but subject to the limit of Rs 30,000 in case of self-occupied house property. In case of let out house property, actual interest is allowed without any ceiling.

Payment Basis - Due Basis vs. Cash Basis

Tax benefit u/s 80C can be claimed only when the actual payment is made. Interest deduction u/s 24(b), on the other hand, is allowed on accrual or due basis. Put simply, unlike principal portion, interest deduction can be claimed even if not paid.

Restriction on sale of house property

The tax benefit under section 80C is allowed subject to the condition that the said house property should not be sold before a period of 5 years. If you violate this, the deduction will be discontinued and the entire tax deduction claimed in earlier years under section 80C - for repayment of principal component of the home loan - will be deemed to be your income in the year in which you sell the property. However, the same doesn't apply on the housing loan interest deduction claimed under section 24(b).

Home loan prepayment: Original loan vs. Subsequent loan

Tax benefit on interest component of the home loans u/s 24(b) is allowed not only for original home loan but also for subsequent loan(s) taken to refinance the first loan. In other words, if the new housing loan is taken to pay off an existing housing loan, tax benefit under section 24(b) is allowed. However, unlike section 24(b), there is no specific mention under section 80C for prepayment of existing home loan by taking a fresh home loan.

So what it means is that when you repay the balance outstanding principal component of your existing home loan by taking a second home loan, you'll be entitled for tax deduction under section 80C but within the overall limit of Rs one lakh. Further, when you subsequently start repaying your second housing loan, you'll be entitled for tax benefit only on the interest portion u/s 24(b) and not on the repayment of principal component u/s 80C.

{Source: http://ezinearticles.com/?Tax-Benefits-Associated-With-Housing-Loans&id=6743691}

An online guide to simplify your home loan emi calculation

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.

Getting a Home Loan

A 'home loan' or 'secured home loan' is one where the borrower pledges an asset, in this case - your property (or in some cases a car) as collateral for the loan. When getting a home loan remember that the loan is secured against your property. If you cannot keep up repayments the lender will, in some cases, take possession of the asset. A home loan will usually offer a rate of interest and terms which is more favorable than an unsecured loan, because the lender is relieved of most of the financial risks involved.

Getting a loan can be a somewhat tedious process at times. Be aware that not every lender is the same, so ensure that when getting a home loan to check the terms of each one before your make your choice. When making your search remember to compare details such as loan repayment period and interest rate before committing to any decisions.

One of the first things that you will probably be comparing when getting a home loan is the interest rate of the loan. By no means is this the only thing which you should consider, but it is a very important part of choosing a loan. Over the period of the loan, even a small difference in interest rates could mean hundreds or thousands of pounds. Compare the interest rate of each lender along with other factors prior to getting a home loan. Remember not to choose a company who charges an interest rate which is higher than others.

The next thing you should look for is the repayment term; some people consider the repayment term to be equally as important as the interest rate. When getting a loan, lenders will vary on the length of time they will allow you to repay the loan. For instance, say you wish to borrow £5,000 - the first lender may have the lowest interest rate but will only allow you two years in which to repay it. This may not be to your needs. Your best option when getting a home loan is to make use of the tools and sites online and go with a loan which you feel most comfortable with.

Processing fees are charged by certain lenders. Be wary of these, as sometimes lenders will use them to offset a lower interest rate. In most cases, they will be tied to your credit worthiness. You need to be clear about which fees you will be charged prior to getting a home loan.

The most common way for people who are getting a home loan to pay is through having their bank accounts deducted on a monthly basis. However, many online lenders will still offer a variety of payment methods. Some people prefer to use credit or debit cards to complete the transaction. There are also minorities who wish to use a personal cheque, and lenders will still offer this - for now.

The bottom line is that when getting a home loan; select a lender who will offer you your preferred method for making payments whether it is cheque, direct debit or credit card.

Also, be aware that some companies may charge an early repayment fee. This means that when you pay your loan back earlier you may be hit with a charge. If you think that there's a chance you could repay your loan earlier than expected, be sure to check the terms of the loan. Use a price comparison site, or broker to ensure that you get the most competitive deal when online.

{Source: http://ezinearticles.com/?Getting-a-Home-Loan&id=3610820}

Lesser-Known Costs Associated with Home Loans

Loan For Home Construction - Go with HDFC home construction loan and you can build your home your ways. Visit us to know more about HDFC construction loan.

Obtain a Governmental House Loan

In today's market, purchasing a home can be an intimidating process - especially for the first time buyer. Interest rates are at an all time high and owning a home can often seem like a far-fetched fantasy for many prospective home buyers. Fortunately, government house loan can make that dream a reality and obtaining a loan is easier than ever. Government house loan are available at the Federal and state levels.

Federal government house loan are administered primarily through the US Department of Housing and Urban Development. The Federal Housing Authority, an arm of HUD, has been around since 1934 and provides incentives for private lenders to provide mortgages for people who otherwise wouldn't be qualified. The FHA does this primarily by backing the loans with Federal money, reducing the risk of loss to the private lender. The end result is that it becomes easier for someone who has little or no credit history to receive a loan to purchase their home because the FHA provides the mortgage insurance on the home themselves.

A government house loan can be a great way to secure a mortgage for your first home. There are also loans available to renovate your home to make it more environmentally friendly or for assistance when purchasing a "fixer-upper." When obtaining a loan for a fixer-upper, the government will allow you to include the cost of renovations in your original mortgage amount. An FHA loan also provides several benefits over a more traditional loan, such as lower monthly payments, interest rates, closing costs and reduced credit history requirements. In order to obtain an FHA backed government house loan, one must contact an FHA lender.

{Source: http://ezinearticles.com/?Obtain-a-Governmental-House-Loan&id=1924022}

9 Myths About Home Loans Exposed

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

Must know factors first time home buyers

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

Personal Loan EMI Calculator

We all want to increase our wealth and save for future. For that we invest in various investment schemes. Managing money properly needs some calculations and awareness. Calculation is needed to estimate the return and find the right amount for investment. Awareness is required because time to time government regulate monetary bills and based on that financial institutions launches various schemes. Proper understanding of both will create wealth for us. Now coming to our topic, “Personal Loan EMI Calculator”. Most of the people buy their car or home through bank finance. Banks provides Car loan for vehicle buying and Home loan for home/flats buying. For both the loans banks fixes the EMI i.e. Equated Monthly Installments and the time period of payments.  We usually take home loan or a car loan due to shortage of funds. Everyone wants to repay his or her loan as soon as possible to get free from liabilities. Therefore we want to optimize the loan amount and EMI value so that it does not become a burden.  For this we need an emi calculator, because at bank nobody gives time to entertain us in this regards. A personal loan emi calculator is more useful than an online emi calculator. I have designed one such Excel based emi calculator for home loan which is fully customized in the way we require the output. This calculator is basically for Home loan optimization but it can be used for car loan also. You can download the calculator from the link given at the end. It is also available in ‘Top Download’ section on Side panel.

The main requirement of personal loan emi calculator is to guide us on the financial figures before going to a bank. With this we can fix our Loan figures and EMI values. Simply we require the ongoing interest rates of bank.

Calculate EMIs

The simple calculation it will do is to find the EMIs for the given loan amount, tenure and rate of interest. It also calculates the total Interests and Principal amount to be paid for repayment of loan. It shows the division in a Pi-chart for clear understanding. Why we stressed upon EMI values?? Because, EMIs are fixed once for all, and whether it is a burden or grace is a matter of deep thinking for all of us.

Compare EMIs

This option is given to compare EMIs by keeping three different tenure. Some people suggest keeping longer period for loan and some suggest completing the loan as soon as possible. Therefore in this tool you can compare the EMIs for three different tenure or loan amount, and select the EMIs that best suits as per your income.

Plan Your Pre-Payment Schedule and Decide for Higher Tenure of Loan

Banks give options of partial payment, where you are allowed to partially repay your loan. Some people use this option when they get any extra income or yearly bonus. When we opt for partial payment the bank generally keeps the EMIs unchanged and reduces the total nos of EMIs. This is a good option that gives us freedom to repay the loan before its full tenure and avoid burden of interest. In the emi calculator for home loan one can calculate the reduced nos of EMIs by selecting the partial payment option. Select the partial payment schedule and calculate the remaining Principal and Interests. Using this calculation one can decide to keep higher tenure say 25 years or 30 years and keep lower EMIs. Later on try to repay the loan using partial payment option.

Finally Calculate Break-Even to Sell Your Property

We buy any property either for self use or for investment. If we buy for self occupancy than we should try to finish the loan as soon as possible to reduce the interest amount.  A house bought on home loan becomes twice as costly as we buy on cash. But if we are buying for investment purpose than we should really do some maths to find the right price and right time to sell the property. In the personal loan emi calculator you can calculate the total worth of any property bought on loan after certain period. One can also calculate the breakeven price of Home, so that he can sell the property at better price at right time.

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