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/}

Calculate your monthly installment with online calculators.

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

7 Benefits of Loan for Home Owners

Most financial lending institutions offer loan for home owners. These loans take the form of home equity loans, meaning that the owner of the home willingly puts up his/her equity in their home against the amount of money the lender is willing to lend them.

In other words with such loan for home owners, the home becomes collateral for the finance company, credit union or bank. If the owner defaults in their repayments of the loan then the lender can dispose of the home on the open market to regain the amount of money lent.

But do not let this put you off looking into home equity loans. They can offer significant benefits and advantages to the homeowner, such as:

1. Money from loan for home owners can be used for any worthwhile purpose. These include home renovation and maintenance, personal uses like travel, buying a car etc, college education, other forms of investment including real estate, investing in a business, consolidation of debt, and cash for financial and medical emergencies and so on.

2. Rates of interest with loan for home owners are normally fixed with a level repayment amount month after month for the term of the loan. This means you know exactly what amount of money to budget for each and every month.

3. Because the owner's home is security for the loan, lenders will generally give a lower interest rate than the normal mortgage home loan. This makes loan for home owner’s cheaper forms of credit than other types of finance available.

4. If the homeowner has a bad credit rating but has equity in their home they are still able to receive homeowner loans, even though sometimes they can be charged with a higher rate of interest.

5. The amount of equity in a home is worked out by looking at the variation between the value of the home at market prices and the amount remaining on the initial home loan. Most lending institutions are looking for at minimum of only 20% equity in the home.

6. Loan for home owners is easier and simpler to get than normal mortgage loans. In fact, if a homeowner meets the criteria re: income, credit rating, property values etc, they can even apply for and get a loan approved online or over the phone.

7. Loans for homeowners can be applied for not just for private homes, but if equity is held in different types of property such as factories, apartments, commercial properties etc it can be security for similar types of loans as well.

{Source: http://ezinearticles.com/?7-Benefits-of-Loans-for-Homeowners&id=5646340}

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

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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}

How to apply 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.

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.