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Home Loans

A home loan, also called a mortgage loan, is a long-term loan given to purchase either an already-built house or land (for building). The borrower pays the lender interest in regular instalments until the loan is paid off. The lender may ask for a down payment of money and the borrower may also be required to make some type of monthly mortgage payment or other additional payments throughout the life of the loan. <br>

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Home Loans

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  1. Home Loans

  2. Topics to Be Discussed What is Home Loan? Home Loans Types Home Loan EMI Calculator Home Loan Interest Rate Home Loan Eligibility Home Loan Required Documents

  3. What is Home Loan?  A home loan is a type of mortgage where the bank or other financial institution lends you, the borrower, money to buy a property. This loan can be used for buying land and constructing a building or it can be borrowed for buying a new home.  The term "house" is a common synonym for a home. Houses are built in different ways, and this is reflected in the name of the loan. For example, an owner- occupied house can be called a residence, whereas an investor-owned apartment building could be called a condominium.

  4. Home Loans Types  There are many kinds of home loans, the most popular being a "construction loan".  A construction loan is not used to purchase property but rather to build an addition or new structure on a property.  In this case, typically the buyer and seller negotiate a fixed construction loan amount that is then disbursed at set intervals as a sum sufficient to keep the workers on site, but not enough to complete the project.  This is called drawing "mortgage advances". Construction loans are most commonly used for new home construction, additions, or a major remodel of an existing structure.

  5. Home Loan EMI Calculator  The Home Loan EMIs Calculator is a website that can provide the required financial information to help you understand your options, and evaluate the cost of loans from different providers.  It will also assess whether you are in a position to avail of these loans, and what the duration of your loan will be.  The first thing you need to do is enter all the relevant details that are related to the loan, such as the term of the loan, condition of property purchase, the tenor of the EMI etc.  Once this information is filled in, you will get a clear picture of what your financial situation will be like after making this decision. Other details would include which bank you are going to apply for it from and if you have pre- approved plans with them or not. All this information is required so that your results will be more accurate.

  6. Home Loan Interest Rate  The interest rate for a home loan is the percentage of money that is charged to the borrower for borrowing money.  It is usually expressed as an annual percentage rate (APR).  The interest rate is calculated by dividing the total amount that the borrower will pay in loan repayments by the total amount borrowed.  For example, if a borrower takes out a home loan for $100,000, and agrees to make monthly repayments of $1,000 per month, then their interest rate will be 10%.  The interest rate is usually fixed at the beginning of a loan. However, it is possible to negotiate with your lender over the interest rate depending on the circumstances.  You should check that any information provided about your loan is correct

  7. Home Loan Eligibility  In order to qualify for a home loan, the borrower must have sufficient income and sufficient assets.  The borrower’s debt-to-income ratio is used as a measure of the borrower’s ability to repay the loan.  If a person is not taking advantage of the tax deductions available for their home purchase and needs to have their loan approved as a result, then the D/I ratio (Debt/Income) will be factored into this calculation.  The primary purpose of a home loan is to provide housing for the family that owns it. So people who are going to be buying a home will want to take full advantage of all deductions they can utilize before they purchase the house and once they do, you know they won't want to do anything else but enjoy their new home with all its advantages that come with it.

  8. Home Loan Required Documents 1. Proof of income 2. Proof of residence 3. Updated passport-size photo 4. Income certificate and employment letter 5. Bank statement with the last 3 months' transactions 6. Certificates of pension, mutual funds existent, other fixed deposits 7. Proofs of property ownership 8. Bank statement of the account in which the loan amount would be deposited 9. Leave and License Agreement or any other documents related to the property pledged with regard to loan eligibility, repayment capacity and interests

  9. Sundaram Home Finance - Home loans  Sundaram Home Finance has been providing home loans at affordable rates for more than five decades.  The company offers fixed and variable-rate home loans that can be availed of by housewives, salaried professionals and people with a regular income.  It also offers second mortgages to finance the cost of renovation or construction work.  A special component of the home loan of home loan that does not have any mandatory lock-in period for repayment. home loan product is the “Flexi-loan”, which is a type  Sundaram Home Finance also provides financial advice on how to manage and optimize one’s personal finances. The company has been consistently rated as one of the top finance companies in India by credit rating agencies over long periods.

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