Addi asked:


 

Most of us cannot afford to build our own homes. This may be due to scarce financial resources or unavailability of land or the absence of a desire to live in an owned home. Whatever the reason may be, there is no denying the fact that an owned home is always better than a rented accommodation since it saves valuable finances and is a valuable long-term investment by all standards.

In context of the Indian housing market, it can be clearly said that the home loan borrowers are happy customers these days, all thanks to the customer-friendly terms, conditions and plans. The reduced home loan EMIs due to intensified competition have opened the doors of personal prosperity and asset accumulation for many home loan aspirants these days.

Due to the emergence of new market players in the Indian housing loan market, the interests of home loan aspirants have blossomed to a considerable extent. There is a remarkable difference in the Indian loan market of yesteryears and today. The changing market trends and attitudes of the financial institutions as well as the other lenders have bolstered the overall growth and prosperity of the Indian housing loan market.

The industry and customer-friendly guidelines issued by the Reserve Bank Of India (RBI) have also strengthened the market norms and attitude. If we have a close look at the home loan EMIs rates for the last few years, we can easily conclude that the reformative measures introduced by many financial institutions and the Indian government in all these years have contributed significantly in an attempt to grab the attention of home loan aspirants. The home loan EMIs have helped the middle and low-class income earners to start thinking about their own homes. This is evident from the fact that in the last two years, the majority of customers asking and/or availing the home loans belonged to these economic classes. The option of making an equated monthly instalment rather than making a lump-sum payment obviously encourage more home loan aspirants.

Some of the most eminent Indian financial institutions such as State Bank of India, HDFC, ICICI, Standard Chartered and Punjab National Bank etc. have opened their hands to greet the home loan aspirants. The plans and policies of these banks have motivated the working class of the country to strive for an owned home rather than living the life of misery in rented or PG accommodation.

A prospective home loan borrower must consider certain things before starting the search for a lender. He must be ready to spend some of his valuable time in understanding the present home loan market trends as that will help him to get effective bargains without losing his focus. The advice of a financial expert, who is dealing in the arena of home loans, is highly recommended since he can offer a complete insight into the complexities of the housing loan segment.

Home loan in India can be taken by any individual who is of the age of 18 years and holds the citizenship of India. Some of the banks are also offering the home loans to NRIs, subject to fulfilment of certain pre-defined conditions. The loan applicant must have a regular source of income and preferably must be enjoying a good credit rating. He must have a valid identity and residence proof such as Government ID card, PAN card, passport, voter ID card and bank statement with address etc. The loan formalities are quite easy, making it pretty easy for the loan aspirants to obtain such loans.

Thus, it can be easily said that the reducing home loan EMIs have surely helped the Indian masses to think beyond the self-defined limits.



Brandon

radio309 asked:


The banks get the most if not all the money back.

Herbert

lynne asked:


i know little about what a loan modification does, from what i’ve heard i can only benefit from it but i am afraid there are bad things that come with it, if anyone can tell me more about it i’d appreciate it. also i’d like to hear about how much it costs?

Maria

Kristin Abouelata - Home Loans asked:


According to Wikipedia, the definition for a white elephant is “a valuable possession which the owner cannot dispose of, but whose cost (particularly of upkeep) exceeds its usefulness.”    Hmmm.  Sounds like some of the higher priced homes we hear may be sitting on the market a little bit longer than usual.  According to the Knoxville Area Association of Realtors (KAAR), the number of homes valued at $500K+ which sold in May 2008 was 34.  But there were 205 new listings.

 

Ok, so I have to give you a little bit of history about the origin of the phrase white elephant.  It really has nothing to do with mortgage lending, but it’s a cool information nugget to know.  Per Wikipedia (yes, again),  in the tales from the Buddhist scriptures, Buddha’s mother dreamt of a white elephant giving her a lotus flower on the eve of Buddha’s birth.  Thus, in Southeast Asia, it became a status symbol to own a white elephant (basically a requirement if you were some type of royalty).  However, due to being sacred and all, the owner couldn’t have the white elephant actually do any work or labor to offset its keep.  Ever wonder how much food an elephant can consume a day?  Think of the clean up after it eats!  You not only get to feed the beast constantly, but you also have nothing to show for it when you’re done.  You get the picture.

 

So, my analogy of there being a few white elephants in the real estate market right now is due in part to the jumbo rates not being so hot as of late.  Loans below $417,000 are sold into mortgage backed securities.  But jumbo loans are sold into private backed securities.  And unfortunately due to the debacle in the mortgage industry that occurred in markets such as Florida, Nevada and California (where a lot of loan sizes are above $417K), there’s not a great appetite for the jumbo loan.  It’s kind of like jumbo loans are liver and spinach on the menu.  A few people will buy that stuff, but it’s not as popular as the cheeseburger.

 

So what to do if you need a jumbo loan?  Make sure you work with a lender who knows their stuff and can present you with options.  Adjustable rate mortgages (ARM) may suit your needs as long as they are fixed for a decent amount of time and won’t paint you into a corner.  An ARM may buy you enough time to refinance at a later date when the market calms down.  You might also be able to wrangle a first and a second so the first loan fints under the conforming loan size umbrella and the second part of your financing is at a smaller loan amount with a higher interest rate.  Just be smart and make sure your lender is smart.  And if you’re selling your home, sit tight.  These homes are moving, however it might be at an elephant’s pace.  Don’t fret, though.  An elephant’s top speed can reach 25 mph.



Aaron

npsems asked:


I need to ask a question privately. Contact info would be appreciated.

Matthew

Meghna Arora asked:


With the income of middle class people in India increasing rapidly, buying home has become one of the top priorities for them. So, one can see constructions of homes going on everywhere. These homes are being provided through loans. Home Loans in India have therefore become inevitable for buying homes. Home loans are being given in India for variety of purpose including buying or constructing a new home, for buying plots and these loans are given also against mortgage of property.

The loan amount approved as home loans for borrowers in India depends on repaying ability of the borrowers and value of the home. But usually housing finance companies sanction up to 80-85 percent of the home cost. The borrower is required to place a certain percentage of the loan as down payment. Rest of the repayment of the loan is made through installments that include interest on the loan.

Before the loan is approved, housing finance companies in India take collateral securities from borrowers for safe return of the loan amount. These securities include guarantee form one or two persons, life insurance policies assignments, share or unit deposits or any other securities.

Interest rate on home loans for India is both fixed and floating. Fixed rate allows for a fixed payment towards the interest through out the loan duration. Floating rate may fluctuate as per existing market interest rate. So the borrowers can opt for a suitable rate.

In India home loans have become a lot easier to repay. This is mainly thanks to various repayment plans introduced to the borrowers. So each borrower can choose to opt for a suitable plan of repaying home loan as per individual repaying ability and circumstances.

The home buyers in India have conventional EMI repayment method for clearing home loans installments. But this method may or may not suit to borrowers as circumstances vary. So lenders offer other easier repaying options to the borrowers.

For instance there are banks which have variable monthly installment scheme. This repayment plan is flexible for a salaried borrower and allows for paying lower portion of the loan in the initial stage of the loan and as the salary increases, the borrower can repay greater portion of the loan later. This plan facilitates for repaying greater loan and is more convenient than EMI based repayment plan.

Those borrowers who are going to retire they can repay greater portion of the loan early as they can support the repayment through monthly salary. After they have retired they can choose to repay smaller loan portion.

For taking home loans in India the borrower is supposed to show latest salary slip, form 16 which shows tax deduction at source by an employee, proof of age and residence

In India home loans are sourced from either banks or public sector housing financing companies or from financial institutions. As far as charges and fees is concerned, housing finance companies take 0 to 8 percent processing fee and once the loan is approved you are required to pay 1 percent of the loan amount as administrative fees.



Edgar

Bee asked:


Hi I’m still up to day payment with pay min. require to lender. Is it easy to call lender to ask for Loan Modification to get lower rate and fix term or should I pay to law office and pay certain fee to deal with lender. Because I heard it not easy to get loan modification unless I didn’t make payment for couple months otherwise I had to know how to prevent to convince the lender to accept it.

Thanks

Ron

Marcello asked:


I am facing some hardships by have managed to keep everything current. I am looking at contacting WAMU who owns my home loan and asking for a lower rate, but I am current on everything and wonder if I would just be wasting my time.

Vivian

Keith B asked:


Mortgage insurers have flagged 9600 zip codes as areas where they do not want to get involved

James

Boris Tomson asked:


Access Money With Home Equity Loan And What is Low Doc Home Loan?

Home Equity Loan : Known by a number of names, a Revolving Line of Credit, a Line of Credit Home Loan, and a Home Equity Loan, this type of loan has become popular due to its flexibility and features.

With a greater credit limit a credit card will be issued. A home equity loan is a credit facility is available with first finance or mortgage on a residential property. I gives permission to withdraw money to a certain limit the equity you have in your home) at any time.

A Home Equity Loan allocates you a lot of flexible features with your finances.

In order to accomplish renovations, share investment, buy other’s investment property or pay your bill you can use this line of credit.Visit to : http://available-grant-money.blogspot.com

Know about the pros and cons prior you make a decision on a Home Equity Loan:

Pros of a Home Equity Loan

* A home equity line of credit offers a much lower rate of interest than credit cards * Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards * Flexible payment options - Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want * Accessibility - Money is easily accessed by cheque or ATM card linked to this loan * Repayments can be made in full or on a monthly basis * Extra repayments are allowed at any time * Cheque book facilities are available if needed

Cons of a Home Equity Loan

With the prime rate the interest rate of a home equity line of credit varies. There is also a limit that is further added to the interest rate, which is fixed and is firm at the time of application classically it attracts higher interest rates than your typical variable rate loans

Low Doc Home Loan: Do you have much confusion or are you speculating whether you can attain finance or not since you are self employed and your economic situations are not in place.

A good solution is offered by many lenders is a simple and easy way to get a loan called LOW DOC Home Loan. Self employed borrowers are the targeted people to attain these Low doc home loans because they are not in a situation to provide full financial statements and income proof.

Most of the lenders are providing the growing trend of low doc home loan products on the market with many lenders giving standard and premium ‘low-doc loans’, with an option of variable or fixed interest rates .Direct Money HomeLoans assists you to get a loan with the best rate and good features by providing access with hundreds of lenders and the leading home loans on the market for sure.

If your loan arrives at 80% to value ratio(LVR), based on the lender you are required to pay for Lender Mortgage Insurance (LMI). Some lenders charge more interest rate for these products because the risk connected with self employed customers is high. The lender will reduce the interest rates when the customer is ready to show their tax assessments after some time.http://available-grant-money.blogspot.com

Think about the following pros and cons before you decide on a low doc home loan:



Leo