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.

Monday, December 31, 2012

How to reduce the Interest Paid on a Home Loan?

Every customer in the market is worried about the amount of interest paid on a home loan during their repayment tenure. A blind calculation gives a result of 100% of loan amount is the amount of interest paid on a home loan during the tenure considered if the customer pays the EMI’s for the whole tenure i.e 20 Years. This is a shocking result to every customer because the home loan interest rate looks very low but when calculated it is exactly the same amount of higher amount of loan that we are paying towards interest on the home loan.

If Some simple measurements taken at the time of availing the home loan then we can avoid the huge amounts that to be paid towards interest of home loan. Just follow the stated below before applying the loan

·         Make more margin money payment towards the property
·         Apply for lesser loan amount which will have lesser interest rate
·         Opt for least possible tenure
·         Opt for possibly higher EMI
·         Make part-payments yearly twice at least
·         Go for home loan linked life and General insurance
·         Opt for Interest saver account if available

Let’s see how the above measurement will save the interest on Home Loan. Banks usually give 80% of the property cost as Home Loan, means higher the property cost, higher the loan, Higher the EMI and Higher the Interest component of EMI. For the initial years the Interest component will be higher so to avoid that opt for lesser loan amount, lesser tenure and Higher EMI with which one can save a very good amount on Home Loan Interest and making part payments will be most helpful too as the amount paid will be directly deducted from the outstanding principle of loan account which in turn reduces the interest and the repayment tenure also.