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Why aren’t the mortgage companies and Banks resetting home loans to current value?

admin — Tue, 22 May 2012 10:54:31 +0000

Question by tarl m: Why aren’t the mortgage companies and Banks resetting home loans to current value?
I was told that the mortgage companies and banks are going to reset (re-write) home loaning starting on Oct 1st. Why are they waiting so long? If they re-set the loans now they will receive monthly payments and people will stay in their homes. If they continue to wait until oct 1st more people will be walking out on their homes cause they cant make the higher payments.This same greed has caused the problem, the banks should take what they can now and not loose more money.

Best answer:

Answer by Bearwithme
You answered your own question in your comments section above. They are greedy and want more.

What do you think? Answer below!

Home Loans Available in Indian Banks

admin — Wed, 12 Oct 2011 12:47:53 +0000

by The U.S. National Archives

Home 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).

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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 certificate

For salaried employees
Latest salary slip or statement
Form 16

For 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 certificate

Type 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

Reverse Home Mortgage – How A Senior Finds The Best Deal

admin — Mon, 14 Feb 2011 18:44:42 +0000

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

admin — Fri, 19 Nov 2010 17:43:04 +0000

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

How the for close process? Will the loan show in my credit for live or a limit time? ?

admin — Fri, 16 Apr 2010 07:50:30 +0000

Huynh T asked:

I can’t pay my mortgage. I have 2 mortgage loans 80/20 at two different banks. Will that mortgage companies go after me if I forclose my home. Thank you so much for helpful answers. CA law please.

JASON

Who is SA Home Loans

admin — Thu, 11 Mar 2010 15:41:32 +0000

Dawie Bester asked:

SA Home Loans was launched in South Africa in February 1999 and is like a short with a kick next to the big beer of the financial world; some of the top-rated banks have been operating since the 1800′s but SA Home Loans is new, young, funky and fresh; very fresh.

So why choose an SA Home Loans? In the company’s own words: ‘… against formidable competitors, we have grown to become the country’s fifth largest home loans provider.” That’s impressive by anyone’s standards, if you’ll excuse the subtle pun.

SA Home Loans is not a bank and not a mortgage originator. A mortgage originator sources home loans from various financial companies and get paid a commission. But SA Home Loans is a specialist mortgage provider. So, what’s the difference? Well, you go to your GP for your annual check-up and then he sends you to a specialist – SA Home Loans is the specialist. And it’s proudly South African.

Now, let’s take a longer look at some of SA Home Loan’s wide range of competitive home loan offerings, add-ons, insurance and equity access products. These include:

- Variable Home Loan

- Super-Lo

- Interest Only

- Interest Only

- Quick Cash

- Further Loan

- Rapid Re-Advance

- Further Re-Advance

- Cap Rate

- Home Owner’s Cover

- Bond Protection Plan

Variable Home Loan

This loan has a variable rate and can be tailored to suit your personal needs. The huge benefit in selecting a Variable Home Loan is that you can switch to another home loan option instantly free of charge. Its flexibility makes this the mother of all home loans. Switch to SA Home Loans and you can get R75,000 in cash within 72 hours immediately after you’ve signed the mortgage agreement.

Super-Lo Home Loan

This home loan option is based on a cash-back incentive programme. You will receive interest refunds into your home loan during the first five years which lower your mortgage balance so you ultimately pay less interest.

South Africa’s unique Only Interest Home Loan

With this exclusive home loan option you get to pay ONLY the interest on your home loan. You can choose to include a capital pay-off, a portion thereof, or not. Once again, you can also switch loan options free of charge.

Varifix Home Loan

SA Home Loans lets you fix the interest rate on your home loan for up to 20 years. The benefit of the Varifix Home Loan is that you get to choose the portion of your home loan to fix; the rest remains variable. Best of all, you can revert at any time to a standard variable interest rate loan.

Quick Cash

Allows you to access up to R75,000 in cash within 72 hours and spend the money on anything you like.

Further Loan

This is an option to borrow money against the increased value of your property. If the market is booming and your house becomes a property gold mine, you can borrow money against the increased value. The fact is that borrowing against your home loan is usually the cheapest credit you can get. Take advantage of it.

Rapid Re-advance

This option secures cash when you have paid more than your agreed installments.

Further Advance

Further Advance lets you borrow funds over and above your original loan as long as it’s an amount less than the original registered loan amount.

Cap Rate

Protect yourself against rising interest rates with insurance that allows you to cap your interest rate for two years so you are never faced with monthly repayments that are burgeoning out of control. With the Cap Rate option your home loan rate is guaranteed not to rise about your cap.

Home Owner’s Cover

Don’t go anywhere without Home Owner’s Cover to protect your property against unexpected disasters, like fires or floods.

Bond Protection Plan

Ever tossed and turned wondering what would happen if you were disabled or died? You, and more importantly your family, are protected against the possibility of repossession when you take out a mortgage protection plan.

SA Home Loans is South Africa’s largest non-bank mortgage lender. The primary benefit in taking out an SA Home Loan is knowing it can accommodate you – first-time home buyer or weary over-extended family man.

ROSCOE

Can I get a loan for more than just the mortgage (for home improvements)?

admin — Wed, 03 Feb 2010 04:58:39 +0000

Jennifer asked:

If I recall correctly, a bank will only issue a loan for as much as a home is worth.

There’s a foreclosure in our neighborhood that no one touched while the seller had it on the market… honestly, it’s ugly – aluminum siding, brick veneer, and the layout of the house is odd, but we’ve decided we can make it work.

Anyway, since it didn’t sell, that owner had it seized by the bank. My husband and I want to make a low offer on it, and maybe get financed for an extra $20k in home improvements (even this would still put our loan quite a bit lower than the home’s appraisal value). Do banks do this? We’re qualified for FHA financing, but we can also put 10% down alternatively.

MARCOS

Unsecured Loans and Alternatives

admin — Fri, 27 Feb 2009 15:41:07 +0000

FHA Home Loan asked:

Unsecured loans can be very difficult to get. There are many factors a bank is going to consider that might make it impossible for you to achieve a positive response about unsecured loans.

Unsecured loans are loans for a business where the company doesn’t have to put up any collateral for the loan. These unsecured loans are common for very successful businesses that show a lot of revenue and assets. It is very difficult for most people who want an unsecured loan for a business to get a good response from a bank if they don’t meet many different stipulations of unsecured loans.

The unsecured loans stipulations usually required from a bank when you are asking for unsecured loans usually require good credit. You must have a high credit score for some of the unsecured loans. The company must have a proven track record of high revenues and success for the past year or two for some of the unsecured loans. The company must show more assets than liabilities and not be in the negative on the books in any way to receive most unsecured loans.

There are alternatives to unsecured loans if lenders are not seeing the big picture that you do. The best alternative to a lender giving you money is through a friend or a family member. If you have a friend or a family member who has the money to help you with the money you need then you won’t have to worry about getting turned away from the banks. A friend or family member also won’t charge you large interest rates like a bank will on unsecured loans.

Another alternative to unsecured loans is by finding government grants for your small business. There is millions of dollars that goes unclaimed every year and if you can get a grant you won’t even have to repay the money but show the government that you spent it on your business. This is an excellent idea for any type of small business because you don’t have to pay all grants back like unsecured loans. Grants are free money the government sets aside for small businesses as a way to stimulate the local economy. Most small business owners never consider business grants before they ask a lender for unsecured loans.

For more information about unsecured loans and how everyone can be approved please visit BusinessCashAdvances.com.

ORVILLE

what percentage of the bad loans are home mortgages?

admin — Sun, 18 Jan 2009 19:43:11 +0000

Stephan asked:

The government is shelling out 700 billion dollars to buy the bad loans that are putting the big banks in danger. We are told that the bad loans consist mainly of unpaid mortgages (sub-primes etc). So the government is effectively buying 700 billion dollars of housing. If we estimate the price of one house between 100k$ and 350k$, then the government should be acquiring 2 to 7 million houses. That is, unless we are being misled and that these bad loans were made up of a lot more than just home mortgages…

WAYNE

How many US auto loans and home mortgages financed by banks are out there?

admin — Sat, 10 Jan 2009 11:35:37 +0000

khulet asked:

I’m trying to discover the # of US home mortgages and auto loans financed by banks in the US and the average value of each type of loan. It’s for a school project.

ANTOINE