How EMI Calculators give insight on home loans?

There has been a lot of change in the real estate sector in the recent past.  The houses are packed with amenities and the prices of these houses have been rising continuously since the recent past.  Every individual wants to own a house which is near to the prime location.

 

Whenever you take a home loan it is necessary to take into consideration the certain factors that are related with it.  The tenure of the repayment, the home loan interest rate, the principal loan amount is the key factors that need to be studied at that time. Home loans are given by various lending institutions and banks.  The home loan interest rates range between 9-10% with a mere processing fee of 1-2 % if the loan amount.  Hence, the easy and affordable housing loans have been catering to millions of people to buy their dream home.

 

Just, like the bigger investments you have done while buying a house you need to be clearly aware of the EMIs you are paying. Because it is the certain amount that you are going to pay to the lending institutions for the next 15-20 years. Home loan EMI Calculator that is available on the website of the lending institutions will help you in calculating the monthly installment that you have to pay. They will help you in computing the EMIs beforehand so that it doesn’t strain you financially in the future.

 

Home loan EMI calculator takes you a step closer to your housing loan in this way:

Get instant results: The home loan EMI Calculator will help you cut short the lengthy and tiresome process of the arithmetic calculations. You will get the results in just few seconds. You get the amount which you are going to pay instantly at the click of your mouse without hiring a financial advisor or expert for the same.

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Easy to use: The EMI calculators are easy to use and are designed in such a way that anybody can use it without any training. You simply need to enter the details of expected home loan amount in the space that is assigned or else there are sliders too. Adjust the sliders as per your needs and you will get results.

 

Enables to try different combinations: You can experiment with the home loan EMI calculator by inserting different values or adjusting the sliders. You can try variations in the costs of the loan, the interest rate, and emis to be paid, etc. You can also recalculate your home loan a number of times you want to.

 

It is free of cost: You can use this home loan EMI Calculator a number of times without any cost. This online tool is available 24*7. So you can save the money which you used to pay to the financial advisor.

 

The home loan emi calculator works on two different arithmetic formulas and includes two different calculators, the home loan interest rate calculators and the home loan emi calculator. The first calculator computes the monthly interest on your home loan and works on a very simple formula.

 

While home loan EMI Calculator helps you understand home loan, the interest rate at which the loan is availed, processing fee applicable, tenure of the loan repayment and the exact monthly installments on your housing finance.

Understanding Home Loan Eligibility.

Building a home incurs significant costs, and for banks to be able to lend to you the required amount for taking house loans, they have to be convinced that you have the capacity to repay what you’ve borrowed with interest within the stipulated time period. A measure of this ability is known as Home Loan Eligibility.

 

People from different levels of income are eligible for different amounts of loans based on their salaries and expenses. It is calculated on the basis of multiple factors including monthly income, fixed monthly obligation, current age, retirement age etc. Basically your home loan eligibility can also be considered an indicator of your home loan affordability.

 

You can get a rough idea of your Home Loan eligibility through a home loan eligibility calculator that is available online. By entering the required details, you can find out the amount of loan you are eligible for, the interest that will have to be paid, and the tenure of loan.

 

These calculators can also be used as a housing loan EMI calculator, as most Home Loan Eligibility Calculators today will tell you the amount of payable EMI as well. Your home loan eligibility can also be helped by having a good CIBIL score. A CIBIL score is a three-digit numeric summary of your credit history derived using the credit history found in the CIR. A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time.

 

Home Loan Eligibility Criteria:

Different banks have different criteria for deciding an individual’s eligibility for a home loan of a certain value. Hence there is no standard calculator that can give you an all-round eligibility, across all banks or the economy. However, there are certain common factors that decide your eligibility that are common all across.  These include:

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  1. Deposit amount
  2. Credit history- This is where your CIBIL score that was mentioned previously comes into play. The more regular you were, in paying off mortgage of previous loans, the better your loan history is going to look and hence the better your chances will get in getting your new loan approved.
  3. Income- The amount of loan you can get from a bank is directly proportional to the amount of monthly or annual income you have, as this directly affects your loan affordability and your ability to repay said amount.
  4. Financial stability- The type of employment also plays a factor here. A self-employed individual who would have different earnings in different months would find it more difficult to get a loan. However, this again is dependent on the amount of average monthly income that the borrower earns.
  5. Debts- The amount of debts that one has racked up and is pending to be paid off will have a great impact on his/her home loan eligibility. The more the amount of pending debt, the lower the eligibility for another loan.
  6. Value of your home (if any)- Every loan requires the borrower to mortgage an asset as collateral, in case he/she is not able to pay back the loan amount with interest. An already existing home can act as a great collateral for a home loan. Hence, the higher the value of said home, the better your eligibility for a home loan.

 

Getting a house loan requires you to convince your bank that you can afford to repay the amount with interest. If the said parameters work in your favour, getting a home loan is just a matter of paperwork and approval.

 

{Source: https://www.indiabullshomeloans.com/blog/understanding-home-loan-eligibility/}

A guide to home loan prepayment

A home loan or a mortgage is big responsibility that an individual has to bear in his lifetime and it is big commitment to make for at least a span of 15-20 years. As a home loan borrower you have gone through all the trouble of comparing home loans and have probably selected from the best and low interest home loans in India. However, it is a debt that bears on your mind always and you want to go ahead and prepay it ahead of its scheduled tenure.

 

Deciding to prepay your home loan is a great step ahead for you financially and will also help you improve your credit score. However, you have to go through the prepayment process step by step and make sure you attain proper closure, so that no problems crop up in the future. Here is a step by step guide that will help you prepay your home loan.

 

Let your lender know about your decision

 

The first thing you need to do if you have decided to foreclose you loan, is let your bank know about your decision. You will need to make a written application and follow a verification procedure. Along with your cheque book, through which you will make a full and final payment, carry all your identification documents such as photo id proof, loan agreement and the likes and go prepared so that there is nothing amiss on your part. Some banks may also ask you for the source of funds by way of which you are making the prepayment. So just to be sure, carry 6 months of bank statements and salary slips as well.

 

After the payment is done

 

After your payment is done, you will be given an acknowledgement of payment. This should clearly mention that there is no principal outstanding or balance payments after you loan has been prepaid. This document should also be stamped and signed by the bank. The bank should also give you a No Objection Certificate NOC or NC at this stage, in which it is clearly stated that the lender does not have any interest in the property any longer. The NOC or NC should carry details like you name, address, home loan account number and the beginning and the closure of the loan.  Apart from this, in case of unused postdated cheques that you may have given to the bank must also be collected to avoid any chances of misuse.

 

Collect all your original documents from the bank

 

Once you have cleared the entire loan amount with proper Emi Calculator India, it is time for you to ensure that you get back all the original documents you had submitted to the bank in proper condition. Scrutinize all the documents and ensure that all the pages are in order. In some cases, a page of sales deed may go missing and it will be a tedious task for you to get replaced. So before you sign the acknowledgement from the bank, make sure all the originals are in order. It is therefore a good idea to visit the bank, to collect your documents in person rather than asking the bank to send them by courier.

A mortgage is a big debt that needs to be serviced over a long period of time. If you have the means to prepay it, it is a good idea to do so, as it frees up your funds for other investments in the long run. But as we specified in this article, just having the intent to foreclose your home loan is not enough. You must ensure that you go through every a fore-mentioned step to obtain full and final closure on your home loan.

[Source: https://www.creditsudhaar.com/blog/2016/02/05/a-guide-to-home-loan-prepayment/%5D