Mortgage home loan answers
Learn about mortgage home loans and rates.
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Home Loans Available in Indian Banks
Posted on October 12th, 2011 No commentsHome Loans Available in Indian Banks
What is Home Loan
Home loan is important source of finance for buying a home. It is important to ensure that your home loan is affordable for you and you are comfortable to repay them. Home Loan is a Secured Loan offered against the security of a real estate property which is funded by the bank’s loan, the property could be a personal property or a commercial one.
Loans are provided based on the market value, mainly estimation given by banks or the registration value of the property.
Once a lender/banker is comfortable with your EMI payment capacity, the lender will figure out the total loan that can be given to you. Generally, bank expects that you will pay at least 15% to 20% of home purchase price amount as the down payment. The remaining 80% to 85% is the loan that bank will give you.
Please Note: if the borrower is failed to pay back the home loan, the banker can retrieve the lent money by selling the property.
For Home Loan EMI Calculation use EMI Calculator
Resource Link: http://www.stampdutyregistration.com/loanemi.php
Eligibility Criteria to take home:
Several factors besides your income will have an impact on the home loan amount you are eligible for
The amount of home loan you are eligible for depends on your occupation (whether you are salaried/ self-employed), your income, the interest rate charged by the bank and the tenure of the loan. As you will discover, the interest rate on the loan not only influences how much EMI you will pay each month but also influences the loan amount you are eligible for.
If your are earning 10,000/- per month then assume that a bank interest rate (9%) then as per government rules 40% will be calculated from your salary means as per this example your eligibility will be 4000/- from your current salary so now next step to divide interest rate
At an interest rate of 9%, the monthly installment of an Rs 1 lakh, 20-year loan is Rs 900.
So Eligibility Home Loan = (4000 / 900) * 100000 = 444444.44. (4.44 lakhs)
For income up to:
Rs 9, 999: [35% will be calculated]
Rs 10, 000 to Rs. 14,999: [40% will be calculated]
Rs 15, 000 to Rs 19,999: [45% will be calculated]
Rs 20,000 and above: [50% will be calculated]
Now to know your monthly EMI you can use Home Loan EMI Calculator
Resource Link: http://www.stampdutyregistration.com/loanemi.php
The maximum loan to value ratio is typically maintained by most banks at about 75% to 85% (where the value is the property value + stamp duty + registration).]]>
Documents Required to Apply Home Loan
Common documents (for salaried as well as self-employed borrowers)
PAN Card
Proof of Age
Proof of Residence
Passport size photograph of the applicant & co-applicant
Copies of pay slips for last few months and TDS certificateFor salaried employees
Latest salary slip or statement
Form 16For self-employed borrowers
I-T returns for the last 3 years
Balance sheet for the last 3 years
P&L accounts for the last 3 years
Tax challan for the last 3 years
Flat and house
Sales affidavit/ letter of allotment in case of society or association of persons
Original vendor’s sale deed
Original sale agreement
I-T clearance as the case may be
Encumbrance certificateType of Home Loans Available in Indian Banks or Markets
Home Purchase Loans: This is the basic type of a home loan which has the purpose of purchasing a new house.
Home Improvement Loans: These loans are given for implementing repair or renovation works, healing and renovations in a home that has already been purchased.
Home Construction Loans: These loans are available for the construction of a new home
Home Extension Loans: These loans are available for the extending an existing home
Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, so the new loan pays the previous loan and fulfills the money required for new home.
Bridge Loans: It Finance for people who wish to sell the existing home and purchase another new one. The bridge loans help finance the new home, until a buyer is found for the old home.
Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes. NRI Home Loans: Loans given to individuals who are NRI’s and want to buy or invest in residential properties.
You can also consult a home loan agents in your area that takes care of all your loan needs and provides a complete door to door service to you.
Find Home Loan Agents in Your Area via (Stamp Duty Registration) http://www.stampdutyregistration.com
To Calculate Stamp Duty Find Stamp Duty Calculator
if you are resident of Mumbai then Loanplanet.in takes care of all your Mumbai Loan needs and provides a complete door to door services
Find More Home Loan Articles
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Reverse Home Mortgage – How A Senior Finds The Best Deal
Posted on February 14th, 2011 No comments
Juhani Tontti asked:
The reverse home mortgage is a product, which lives with the general economy, i.e. when the banks have difficulties to sell their products, they will use the special offers to boost the sales. Then the terms of the reverse home mortgage will be favourable.
After a senior has met the needed experts and know, what he is after, it is best to write down the plan for the reverse home mortgage, so that it will be ready for the shopping. The shopping means, that a senior uses the online comparison sites to get the best offers of that particular time.
1. Follow The Market Interest Rates.
The reverse home mortgage is a long term commitment, where the interest rate plays a key role. The interest rates follow the economy, i.e. when the economy is down the interest rates are down and when the economy is boosting, the interest rates are high.
This means, that the time for the reverse loan is best, when we have the recession, because then the terms of the loans are generally favourable. If a senior has a possibility to wait, it can be very profitable. An ideal case would be to take the loan with a low fixed rate and for a long time.
2. Make The Lenders Fight For You.
The situations of the lenders vary very much, but generally, when the economy is down and the home sales is down and the mortgage sales is down, then the timing to take a reverse loan is good, because the lenders are willing to make special offers.
It would be impossible to find these offers without the Internet and the price comparison sites. They have done a great job by collecting hundreds of offers from hundreds of lenders and when you submit your requirements, you will get the best quotes in seconds.
3. Turn To Your Present Bank.
When you want to take the reverse home mortgage, that is an ideal time to turn to your present bank and to ask, whether your old connections have any value. Ask a quote and show your other best quotes to check, whether they are willing to beat the competition.
4. It Is A Buyers Market.
The attitude of the borrower is important. Now is the down phase in the economy and this means, that the buyers are the kings. A customer can be tough and ask tough terms. The lenders are prepared to this.
5. The Borrower Must Do The Homework.
The good deals will not walk to a senior, but a senior has to fish them from the market. This needs some work. Action one is to decide, whether the reverse mortgage is for you, and if yes to prepare a detailed plan together with the counselor. Then starts the shopping, which can take some time, but is worth the time spent.
Brad -
Information About Mortgage
Posted on November 19th, 2010 No comments
Dawie Bester asked:
A mortgage is usually connected with the word collateral. In this type of loan, you will have to put a property of yours as a guarantee that you will pay the amount that you have borrowed from your lender. This is usually offered by banks and other small to large companies. In this type of acquiring a house, you will be able to get the home that you are dreaming off with the condition that the company that helped you buy it will have the temporary ownership of the house. This is quite a very big deal and this will actually be the biggest that you can encounter in your life.
You need not be afraid to do have this kind of deal. If you are in great need and you are faced with no other choice than to go on a mortgage, then let it be. The continuation of financial services such as this up today confirms that many people still value and were triumphant in fulfilling the mortgage plans that they have. This is such a unique and complex process of loaning a house but once you have decided to go through it, you will soon realize that it is just the same as loaning money in the bank.
However, before you decide to actually sign up for a mortgage, take these simple tips with you. They will help you start right and end up right. These are tips that are often given as suggestions by experts in the field as well as those who were successful themselves too.
First and foremost select a reliable partner. This means that you need to choose a trustworthy company or back to deal with. You can achieve this by searching the internet or ideas and opinions of those close to you. They may have knowledge on the best mortgage parent in town. This is very crucial because you need to entrust your loan and at the same time your home on them.
Read carefully and evaluate the terms that you will be agreeing too. Do not just scan and skip on the words written in a contract. Clarify vague statements and do not be afraid to ask questions if necessary so you will not be caught by the webs of some unscrupulous businessmen.
Avoid mortgage plans that offer interests to be paid only. Many lenders make this as attractive bait that will draw more customers in them. However, in reality we know that if you are only paying for the interest, you are not actually paying your loan as a whole. In the end, you will still be burdened by the bulk of the amount of the payable.
Get the house according to your capacity to pay. If you let yourself be convinced by lenders to loan more, you will fall deeper in debt. Consider your capacity to pay and the value of your house so that you will be able to determine if you can or cannot pay for it promptly.
Charlotte
