Sep
30
How do I calculate mortgage payments when buying a home from a family member?
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Question by Y?: How do I calculate mortgage payments when buying a home from a family member?
We are thinking of purchasing a house from my father. Instead of using a mortgage broker or bank, he suggested using a lawyer to set up monthly mortgage payments directly to him. We would still buy the house, and it would be in our names, not renting. How are payments like this calculated? Also, it seems this gives us flexibility and saves us money, but isn’t as secure. What are the specific down-sides to this?
Best answer:
Answer by manas p
It’s true.. it is not very secure method.
Add your own answer in the comments!
Sep
29
Q&A: What happens to your mortgage if you sell your home for less than you owe?
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Question by Alick: What happens to your mortgage if you sell your home for less than you owe?
We would like to move into a bigger home. We live in a small condo that we paid a lot for. We will never get as much for it as we owe for our loan, but we have divulged grown it. We are not in a foreclosure situation because we are making the payments on time without a problem. If we sell our home for less than it is worth, can we add the balance of our mortgage onto the mortgage of a new home, or will we owe the bank the balance flop then and there?
Best answer:
Answer by wizjp
Nothing. Literally nothing. Unless you pay off the loan, you can’t transfer current clear deed; so you can’t sell.AS you deed out. all debt must be paid in full at the closing
What do you think? Answer below!
Sep
27
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Sep
25
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Sep
23
Home Loans Available in Indian Banks
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Home Loans Available in Indian Banks
What is Home Loan
Home loan is important source of finance for buying a home. It is important to ensure that your home loan is affordable for you and you are comfortable to repay them. Home Loan is a Secured Loan offered against the security of a real estate property which is funded by the bank’s loan, the property could be a personal property or a commercial one.
Loans are provided based on the market value, mainly estimation given by banks or the registration value of the property.
Once a lender/banker is comfortable with your EMI payment capacity, the lender will figure out the total loan that can be given to you. Generally, bank expects that you will pay at least 15% to 20% of home purchase price amount as the down payment. The remaining 80% to 85% is the lend that bank will give you.
Please Note: if the borrower is failed to pay back the house loan, the banker can regaining the lent money by selling the property.
For Home Loan EMI Calculation use EMI Calculator
Resource Link: http://www.stampdutyregistration.com/loanemi.php
Eligibility Criteria to take home:
Several factors besides your income will have an impact on the home loan amount you are eligible for
The amount of home loan you are eligible for depends on your occupation (whether you are salaried/ self-employed), your income, the interest rate charged by the bank and the tenure of the loan. As you will discover, the interest rate on the loan not only influences how practically EMI you will pay each month but also influences the loan making you are eligible for.If your are earning 10,000/- per month then assume that a bank interest rate (9%) then as per government rules 40% will be calculated from your salary means as per this example your eligibility will be 4000/- from your current salary so now next step to divide interest rate
At an interest rate of 9%, the monthly installment of a Rs 1 lakh, 20-year loan is Rs 900.
So Eligibility Home Loan = (4000 / 900) * 100000 = 444444.44. (4.44 lakhs)For income up to:
Rs 9, 999: [35% will be calculated]
Rs 10, 000 to Rs. 14,999: [40% will be calculated]
Rs 15, 000 to Rs 19,999: [45% will be calculated]
Rs 20,000 and above: [50% will be calculated]Now to know your monthly EMI you can use Home Loan EMI CalculatorResource Link: http://www.stampdutyregistration.com/loanemi.phpThe maximum loan to value ratio is typically maintained by most banks at about 75% to 85% (where the value is the property value + stamp duty + registration). ]]>
Documents Required to Apply Home Loan
Common documents (for salaried as well as self-employed borrowers)
PAN Card
Proof of Age
Proof of Residence
Passport size photograph of the applicant & co-applicant
Copies of pay slips for last few months and TDS certificate
For salaried employees
Latest salary slip or statement
Form 16
For self-employed borrowers
I-T returns for the last 3 years
Balance sheet for the last 3 years
P&L accounts for the last 3 years
Tax challan for the last 3 years
Flat and house
Sales affidavit/ letter of allotment in case of society or association of persons
Original vendor’s sale deed
Original sale agreement
I-T clearance as the case may be
Encumbrance certificate
Type of Home Loans Available in Indian Banks or Markets
Home Purchase Loans: This is the basic type of a home loan which has the purpose of purchasing a new house.
Home Improvement Loans: These loans are given for implementing repair or renovation works, healing and renovations in a home that has already been purchased.
Home Construction Loans: These loans are available for the construction of a new home
Home Extension Loans: These lent are uncommitted for the extending an existing home
Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, so the new loan pays the previous loan and fulfills the money required for new home.
Bridge Loans: It Finance for people who wish to sell the existing home and purchase another new one. The bridge loans help finance the new home, until a buyer is found for the old home.
Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes. NRI Home Loans: Loans given to individuals who are NRI’s and want to buy or invest in residential properties.
You can also consult a home loan agents in your area that takes care of all your loan needs and provides a complete door to door service to you.
Find Home Loan Agents in Your Area via (Stamp Duty Registration) http://www.stampdutyregistration.com
To Calculate Stamp Duty Find Stamp Duty Calculator
if you are resident of Mumbai then Loanplanet.in takes care of all your Mumbai Loan needs and provides a complete door to door services
More Home Loan Articles
Sep
19
More Canadians are Turning to Mortgage Brokers
When it comes to mortgage financing, more and more Canadians are choosing to work with a professional mortgage broker. According to a recent study by the Canada Mortgage and Housing Corporation (CMHC), 23 per cent of mortgages composed were arranged through a broker.
Canadians are just catching up with their American neighbors, who are far less likely to simply walk into their home bank for a mortgage. In 2000, almost 70 per cent of all U.S. mortgages were arranged through mortgage brokers.
If we follow the U.S. model – and it seems that we are — then we’re in for a sea of change in the way Canadians manage their most important personal asset. It makes sense. After all, investment returns aren’t as lucrative as they were five years ago, and investors are seeking out ways to make financial gains through avenues they may have overlooked.
There are some significant benefits to working with an independent mortgage broker. Firstly, let’s compare mortgage expertise: Most banks have one or more representatives who are specifically assigned to assist with mortgages. Their role is to develop mortgage business for the banks. An ontario mortgage broker, on the other hand, is a trained mortgage professional who has met standards for education. The comprehensive training of an independent mortgage broker may exceed the training of their counterparts at the bank. More importantly, the mortgage broker is independent. He or she is not an employee of a lending institution, but has access to rate and option information for a full spectrum of chartered banks and other lending institutions. Their role is to find the best possible mortgage rates and options for you.
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Let’s also look at choice: A mortgage broker offers you access to many competitive lenders, each with a range of mortgage options. It would take weeks of research, telephoning and personal visit to recreate the range of features and options that a mortgage broker has at his or her fingertips. Rate information, mortgage options and payment schedules are up-to-the-moment, so you and your broker can make valid comparisons of the options available. The result of all this choice is a mortgage which is customized to meet your needs and to save you money.
Also consider accessibility. Your mortgage broker will be available to you before and after your mortgage closes, which will be good news for those who have spent long hours on hold or in a telephone voice answering loop.
Above all, clients have turned to mortgage brokers for better rates. Access to a broad range of lending institutions is a critical advantage for mortgage shoppers. A quarter-point difference on your bond rate can add up to thousands of dollars over the life of your mortgage. Many mortgage brokers work inside a brokerage organization with sufficient mortgage volumes that they can negotiate the best possible rates for your situation. Canadian homeowners who have experienced the benefits of a mortgage broker are unlikely to ever return to a world in which they simply recognized the best posted rate at their local bank.
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