Sunday, August 25, 2013

Home Loan Balance Transfer

Home Loan Balance Transfer is a product which is always in customer's court and which has the capacity to save considerable amounts in terms of Interest that is being paid on a Home Loan Account. Banks usually change the tenure when there is a change in interest rate which make the principal component in the EMI very less. If the tenure crosses 300 months then banks raise the EMI amount and it definitely benefit the customer but  increased EMI will be a additional burden in repayment.

To clear all these hassles to customer banks have designed this Home Loan Balance Transfer product which can give the flexibility of shifting your home loan account to some other bank which is giving lower interest rates and benefits. It is quite like other home loans where customer need to submit all his personal, income and property documents to the bank to which he would like to transfer his loan. The banks processes all the details and releases the outstanding loan amount along with pre closure charges if any to the previous bank directly. Banks will receive all the original documents that are mortgaged for the home loan availed directly.

Banks provide the option of availing different other products along with Balance Transfer. The additional products are Mortgage or Construction. Customer should have income eligibility and the property valuation should support to complete the Balance Transfer and the additional product amount to be disbursed. This product is available to the Resident Salaried individuals, Resident Self Employed Individuals and NRI Salaried Individuals.

Thursday, August 8, 2013

Home Loans in Bangalore

Mr. Kranthi Mohan a leading bank’s customer has filed a case against his home loan funded bank about not revealing complete details of repayment structure which affected him badly in the situation where he is not able to repay the home loan EMI’s in time due to job loss. Most of the customers who apply for home loans in Bangalore are always in a hurry to close the process with the pressure of the builder for their payment schedule.

A home loan is a product which banks offer customer to purchase a property with simple and affordable EMI’s with a maximum repayment period of 20 years. Home loans in Bangalore have seen a steep raise in their business with the increase in purchases of real estate properties. But having complete knowledge is most important than completing the process in time. Lets see where all the customers do mistakes when it comes to home loan and resolve the issues for hassle free process who wish to go for a loan to own their dream house

A home loan application will have two applicants in which most of the people feel and believe that co-applicant is not liable of repayment when only applicant income is considered. A co-applicant is equally liable as applicant even his/her income is considered or not. Now lets see the cases when the interest rates are going up, in this case a customer can opt for Fixed Rate of Interest by paying switching fee from Floating to fixed which can save considerable amount to customer. Banks will increase the tenure initially when there is a change in interest rates and when the repayment period crosses 300 months then banks increase the EMI. Customers can opt for increase in EMI amount at any point during the tenure which in turn reduces the repayment period thus reducing the interest paid to bank.

All banks/financial institutions offer Home loan linked life insurance with one time premium which cover the applicant’s life again the home loan. If any risk occurs to the applicant then the complete loan will be cleared by the insurance company and the documents will be released to co-applicant. All the customers are suggested to opt for Home loan linked insurance which is a cover in difficult situations.

Banks provide customers of some facilities like switching the home loan to other bank for better interest benefits, pre closing the loan, making part payment towards the home loan account amount of which will directly deducted from principal amounts, interest rates switching, Income Tax benefits on interest paid amounts etc. A simple ground work on these things will save huge amount which a customer pay due to lack of knowledge on the products.

Wednesday, February 13, 2013

Amortization Calculator

A payment Amortization Calculator is a thing that individuals will use to be able to figure out what the periodic payment will probably be on the loan and in many cases a home loan or mortgage loan. This calculation is based upon the amortization method and will consider a variety of distinctive figures like the interest and principal payments to be made designed on every single repayment. Also this distinct calculator is capable to help you produce a full payment schedule for the existence of the loan and provide you with data relating to the principal and interest that could have to have to be paid on the once a month or yearly foundation.

The good news is for you personally there are lots of online payment amortization calculators available which are able to help you weigh up a variety of various possibilities you might have with regard to loans and can have the ability to provide you with payment specifics accordingly. In order to get a proper figure you will want to input the mortgage loan total, the interest rate together with how extended you wish the term on the mortgage loan to be for. The moment this fact has become input then the payment amortization calculator will then supply you by using a table which tells you how much in the loan is receiving compensated off and it will help you to understand just how you might be having to pay the mortgage loan off. As you will shortly see that from the table provided by the payment amortization calculator the once a month repayments will modify about the everyday living in the loan. Inside the beginning most of the money that you simply pay out so as to repay the loan goes in the direction of covering the interest payments and then as time elapses much more of the cash will then go into paying out off the principal part in the loan (the genuine loan total you at first took out) as well as a much scaled-down part of any payment then addresses the curiosity prices.

An amortization calculator can help you to
obtain out just which home you can manage. This instrument can be located in a amount of ways but make sure which you obtain these which are offered absolutely free use on mortgage lender's sites. The objective is to use them to help you to know just how much you can pay out with your mortgage loan.

By using a loan Amortization Calculator, all you will need to do is input some straightforward figures relating to the quantity of the loan, the size of the repayment period of time, the frequency of payments along with the interest which is getting charged. The calculator will then do the rest and offer you a trusted indication within your repayments. If your loan might be manufactured making use of a mixture of balloon, or bullet, payments and amortization repayments, this ought to also taken into consideration while in the calculation.

Wednesday, January 9, 2013

How Eligibility Calculators help in availing home loans?

Eligibility calculation is one of the important aspects of home loan processing. Banks calculate home loan eligibility of each and every customer who applied for a home loan by taking applicant and co-applicants income into consideration before giving a sanction letter to the customer. A little idea on how this eligibility is calculated will make much difference in the process of home loan.

The process of eligibility calculation varies from customer to customer depending on the income source. If the customer is a salaried customer then the sum of regular components of salary is taken into consideration along with 50% of the variable pay for the calculation of eligibility. If the co-applicant income is also considered then the same principle will be applicable to the co-applicant also. After arriving at a component both the applicant incomes is added and take a maximum of 60% of the salary for the contribution of home loan EMI. If any liabilities are there then the component of their EMI will be deducted from this amount and on the remaining amount the eligibility is calculated by dividing the amount with the per lace EMI component of the home loan interest rate charged for the desired tenure or applicable tenure which results the home loan eligibility.

The Eligibility process is the same for the NRI Salaried also the only difference is the amount is converted to Indian currency before calculating the eligibility. The calculation differs a bit for self employed whose gross income along with depreciation, Interest paid, and remunerations are considered for the calculation and remaining process is same. The calculated eligibility by the bank is final. Liabilities that a customer would like to close to avail a home loan will not be considered as a liability and liabilities below 6 months are also not considered. Having liabilities will decrease the loan eligibility and it is always suggestible to close all the liabilities before applying for a home loan for comfortable repayment of home loan.

Eligibility calculators help you to know how much amount you will be eligible for if you go for a housing loan depending on your requirement. The Eligibility calculators will take all the information about your income and your requirement's then give final eligibility depending on the values provided. The value arrived finally may vary from bank to bank depending on product and tenure considerations.


Saturday, January 5, 2013

Why construction loan is a best product?

Banks design different products for different needs of customers which are based on specific needs of ones requirement. It is believed that Construction loan is the product that suits best to the customers who are looking to avail loan on the property or vacant land to start construction. The property can be a constructed house on which developments are proposed or can be an open land. To avail the loan the customer’s needs to undergo a very simple process which will give the loan required by the customer?

The customer needs to avail all the required permissions from the concerned departments before applying a home loan. The required permissions are Plan of Construction from the municipal authorities and land regularization approvals if the land is not regularized or falls under Gram Panchayats. Once the approvals are availed a construction agreements is to be executed in favor of the Builder if the construction has been given on contract, if it’s a self construction then there is no need of any agreements just the property documents will suffice the requirements.

The customers need to submit all his Personal documents which proves his/her identity and provides information about the residential address and income documents which authenticate the monthly salary received from the employer and the form-16 which gives the details of the tax deducted by the employer from the customer’s salary.  

All the personal documents along with property documents on which the construction being done need to be submitted in the bank of which verifications are done and post satisfactory verification the loan will be disbursed. The property on which the construction is being done can be a registered property on customer’s name or his/her parents name. Customer by making his/her parents as co-applicant in the home loan application can avail the construction loan. Tax exemptions US 80© of Income Tax are applicable on the principal and interest components of the loan.

Customers are advised to check with the home loan interest rate conveyed to you at the time of applying a home loan with the interest rate mentioned on the sanction letter given by the bank before going for disbursement of loan amount.