Home Loans
Home loans, or mortgages, use a borrower's home for collateral. This home can be a single-family house up to four-unit property, as well as condominium or cooperative unit. Lenders fund home loan, but both the lender themselves and broker who act on behalf of the lenders originate.
The most common purpose of a home loan is to provide the funds a buyer needs to purchase a home. Home equity loans allow a homeowner to borrow against the difference between the home’s value and the current loan balance, or equity. Investor loans permit buyers to purchase homes as rental properties or to fix up and sell at a profit.
Types
The two most widely used types of home loans are fixed-rate and floating-rate loans. A fixed-rate loan keeps the same interest rate throughout the loan, which means that the principal and interest payment of the monthly EMI stays the same.
Floating-rate mortgages begin with lower interest rate for first few yrs and then change according to the market conditions after the initial period is over. Caps are placed on how much interest rate can change at any one time, as well as on how much the rate can increase over the life of the loan. This means the principal and interest amount of monthly payments change repeatedly throughout the loan.
Based on the loan features(interest rates & other charges),eligiblity criteria and services provide the following case study of main players for home loans is given below:
State Bank of India
It is "THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards along with “MOST PREFERRED BANK AWARD” in survey conducted by Network 18 in association with AC Nielsen-ORG Marg in various cities across India.SBI Home Loans comes on the solid foundation of trust and transpa...
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...lity Criteria : Home Loan
Salaried
Self
Age
Minimum 21 yrs
Minimum 21 yrs
Salary
Information not available
Information not available
Job Experience
Information not available
Information not available
Residence Proof
Valid Residence proof
Valid Residence proof
Documents Required
Obtaining a home loan is comparatively easier now a days. On the other hand, there are eligibility criteria that have to be met. The amount of the loan given by financial institution depends upon factors including your Salary, age, qualifications, work experience, number of dependents, spouse's salary, stability of salary and employment, assets, liabilities, etc.To get any home loan some relevent documents are required to support the deal. Self employed and salaried people require different documents to support the deal.
References http://www.sbi.co.in/ http://www.pnbindia.in/
taaza.com
As a home buyer, what do you need to know about the FHA? It is important to first understand that FHA has strict requirements in place to see if you even qualify for an FHA loan. But even before you start to jump into the home buying experience, it is important that you are prepared for this process. The FHA will require some basic information from you to see if you can qualify for an FHA loan program. The basic qualification that they will require is as follows:
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
Most people that decide to buy houses do so by applying for loans. There are two distinct types of mortgages or loans.
A fair number of individuals do not trust lenders that tack on excessive interest rates. The thing about payday loans is that they do have high interest rate. You are going to want to take note of that. The following tips can give you guidance on protecting yourself whenever you need to take out a payday loan.
An even more amazing loan plan than the thirty year is the more recent interest only loan. After two years of straight interest payments, and pure profit for the financing company, the loan payment begins to escalate. So, the consumers dream home must be sold or refinanced in order to avoid the cost of the outrageous increasing payment to the greedy lenders. These loans helped the mortgage companies do well, but the dream home will cost more than ever dreamed if the loan is kept. For the stressed out homeowner this payment is often unaffordable and although the corporation may do well the consumer is left in d...
Personal Finance Essay Many students in today’s world believe they need to take out student loans for college. I believe you don’t have to take that path. Student loans are hurting many students who attend jcollege, and I believe that the loans should stop. Any student can get through college and be debt free at the end.
Every collapse offers new opportunities to rebuild with a new vision, but it’s up to individuals to take the right risks and the right sacrifices to transform a distressed piece of real estate into a progressive model for community development. While many see the current situation of real estate as an opportunity to purchase undervalued pieces of property as investments, I see the opportunity to become part of social and agricultural movements that have the capacity to thrive under current conditions. Urban farming and community coordination are both aspects of an environmentally sustainable society that ensures maximum returns on investment from financial and personal satisfaction perspectives alike. But before I come off as a complete idealist, I should assert that while heart and the right intentions are great, an investor needs to have a sound business plan, and a potential community action leader must have the right approach. With this in mind, if I were to acquire $150,000 in cash to be used specifically for a distressed real estate purchase, I would buy urban property in Detroit with the intent of making my new properties part of the growing movement of community supported urban farming.
When you buy a home it brings the sense of accomplishment and pride. It is also a chance to express your style and personal taste. You can enjoy freedom with home ownership.Buying a home also lets you have insight as a part of a permanent community. On the other hand, in a rented apartment or home, one might feel temporary and less
Abstract As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for.
Interest rates are the cost of borrowing money, expressed as a percentage, usually over a period of one year. Just a few items that have interest rates are mortgages, automobiles, and credit cards. An interest rate is the amount of money a borrower must pay the lender on top of the amount being borrowed. In the last ten years, interest rates have been moving up and down like a roller coaster. According to a report by the Federal Reserve Board, the interest rates in the last ten years have not remained still for more than one year. During 1990 the interest rates were at an all time high at around eight percent, nearly double the amount today. From 1991 to 1994, the rates dropped to a significantly low three percent. Starting at the end of 1994 up to the turn of the millennium, interest rates have jumped up to, and remained between, five and six percent. By...
In the United States we face many issues such as poverty, death, health, and many others. But the issue that is currently effecting society the most is foreclosure. What is foreclosure? How has it effected society?. The definition of foreclosure is a legal or professional proceeding held by a lien holder which is a court order termination of equitable right of redemption amongst housing properties. Foreclosure has not just effected us financially, but has effected society physically.
When subprime mortgages began to flourish, the term housing bubble came into existence. The term relates to the time in which houses sharply increased in value, and consumers often borrowed at less than the lowest rates. People believed that the price of their homes would rise and they could then refinance for lower payments. The problem with that mentality is many people didn’t just refinance for lower payments, they also refinanced for personal spending. Inflation of home prices meant homeowners suddenly had more equity and were able to spend the money as they chose.
There are many choices available when shopping for a mortgage loan, and the average first time home-buyer could easily become overwhelmed. It's important to understand the differences between the two types of mortgage loans: Conventional and FHA (Federal Housing Authority), with four different factors to consider on either type of loan.
Buying a home is more complex then most think. A purchaser of a home doesn't pay in cash when buying a house. If that were so, then nobody would be able to afford one. A potential buyer must get a loan. The bank doesn't lend their money to just anybody, so there are prerequisites before a buyer should consider buying a home. The potential buyer must have enough money for a down payment which is 3% to 20% of purchase price, a steady job with for at least two years or more, must have a decent credit score with at least a 640 or better. That is standard for the market. (1) The credit score is based on the FICO score. FICO stands for, Fair Isaac Corporation, a company that has been in business since the early 1950's and monitors consumers' credit ratings and put a scoring system on it. (2) Conventional loans are usually financed up to eighty to ninety percent with a down payment required of ten to twenty percent. The potential buyer must also have a debt ratio not exceeding 28/39 of their income. The first number 28 refers to your new mortgage payment that cannot exceed 28% for your gross combined income and 39 refers to your mortgage payment plus revolving and installment debt as well as taxes and insurance cannot exceed 39% of you total combined gross income (3).
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.