Any banks/lender recommendations who good give lower rate for home loan ?
just wanted some good recommendations from people who had been through the home loan process recently and what they recommend
Which bank or financial company is offering the lowest interest rate on home loan in Mumbai, India ?
Pls mention the both floating & fixed interest rate also.
The housing loan rates of all banks are almost equal. the only difference coulld be 0.25 %
What's a "good" home loan interest rate?
I have great credit-- pushing 800. I'm a first time home buyer. What kind of interest rate should I expect to get? What kind of interest rate would a person get if they had less-than-stellar credit?
There are other factors involved in determining an interest rate besides credit score. However, based on a 30 year fixed rate with a score near 800 a good rate would be in the low to mid 6's right now. The near 800 score does not really do much more for you than if you had say, a 680 score in terms of mortgage lending. If you had less than stellar credit, this is much harder to determine a rate without knowing all of the details as this could range anywhere from say 7.5% up to 12+%.
Tuesday, November 17, 2009
Thursday, November 12, 2009
Should I lock in rate for home loan?
I've been pre-approved for a home loan from my credit union. However, I'm still looking at houses and haven't made an offer yet on any of them. If I lock in the rate of 6.125 with my credit union, I'll have to cough up $500 for the application fee. Should I wait until I've found a house? Also, I want to shop around to try to get the best home loan rate so is it wise to lock in a rate when I'm not sure I even will use my credit union? Also the $500 is refundable if I end up closing the loan with the credit union. This rate is for a 7-Year ARM.
6.125% is an incredible rate if we are talking about a 30 year fixed rate. However, most locks are only 30 days in length so without a home- it probably wouldn't help you to be locked in at this point. I would guess that the 6.125% WAS the rate when you initially were pre qualified for the loan as I find it hard to believe they will still honor that rate. Finally, I would NEVER pay an application fee to anyone for anything. It is a complete junk fee to get them paid if you do not close the loan with them. No money is needed on a standard rate lock. Find your home, shop for the rate with 3-4 people (be sure to ask the Credit Union if that rate is still available as I'm guessing it is not), choose your lender and go from there. Don't compare closing costs as they are generally the same regardless of lender outside of application fees and/ or origination and broker fees.
Why is the home equity loan rate going up while mortgage rate is going down?
For at least the last couple days? is there chance home equity loan rate goes down?
The two are not the same and have nothing to do with each other. The prime rate has gone up many times lately so all loan rates will follow. When you borrow money to buy a home the bank is not the one that loans you the money. Companies bid for these mortgages and when they have a lot of money that needs to be earning something then the rate will go down. When the money is tight then the rate will go up. They will tell the bank they will buy so many millions of dollars worth of mortgages at a given rate. There are several so the rates may not be all the same. Depending on your history the bank and holding co. will decide what company will take the risk.
6.125% is an incredible rate if we are talking about a 30 year fixed rate. However, most locks are only 30 days in length so without a home- it probably wouldn't help you to be locked in at this point. I would guess that the 6.125% WAS the rate when you initially were pre qualified for the loan as I find it hard to believe they will still honor that rate. Finally, I would NEVER pay an application fee to anyone for anything. It is a complete junk fee to get them paid if you do not close the loan with them. No money is needed on a standard rate lock. Find your home, shop for the rate with 3-4 people (be sure to ask the Credit Union if that rate is still available as I'm guessing it is not), choose your lender and go from there. Don't compare closing costs as they are generally the same regardless of lender outside of application fees and/ or origination and broker fees.
Why is the home equity loan rate going up while mortgage rate is going down?
For at least the last couple days? is there chance home equity loan rate goes down?
The two are not the same and have nothing to do with each other. The prime rate has gone up many times lately so all loan rates will follow. When you borrow money to buy a home the bank is not the one that loans you the money. Companies bid for these mortgages and when they have a lot of money that needs to be earning something then the rate will go down. When the money is tight then the rate will go up. They will tell the bank they will buy so many millions of dollars worth of mortgages at a given rate. There are several so the rates may not be all the same. Depending on your history the bank and holding co. will decide what company will take the risk.
Wednesday, November 11, 2009
Using a Home Loan Equity Mortgage Calculator?
Doesn't really matter which number is first.. the most important numbers are your credit score, interest rate, equity, income/existing payments ratio. Other numbers you will need are current market values, balances of existing loans, length of loan, and amount of loan.
How come using Yahoo home loan calculators it seems like I am paying way too much for my current home loan?
Took out a loan 6 years ago for 90K at like 5.75%. I'm paying around $900/month on it over 30 yrs. The calculators on Yahoo though say I can get a 90K loan now at 6% and only pay $540/month over 30 yrs. What is going on? Did I just get taken to the cleaners somehow? Is there anything I can do?
Yahoo calculators is just P&I. Meaning principal and interest. Your payment that you pay is PITI (principal interest taxes and insurance). But still 900 a month on 90K doesn't make any sense. That is huge. That would make you paying close to 45% of your payment to things other then P&I. It should be around 20-25% at most. Are you sure your interest rate was fixed? I'm trying to figure out why your payment is so high even calculating it with PITI. Its way way way high. Its been 6 years so chances are you dont have Mortgage Insurance. So you only have Taxes and Hazard. It only makes sense if you 90K loan is on a house that is worth 300K or maybe your insurance is for flood or earthquake. I would check your payment and see what it includes. Their is no reason to give the money to your bank so they can pay your bills. You are way pass that. Kill your escrow account. You are just giving them interest free money for a year to pay your bills. You shouldnt have this. Then your payment might be more to your liking. Just remember then you pay your hazard and taxes when they are due. Good Luck.
How come using Yahoo home loan calculators it seems like I am paying way too much for my current home loan?
Took out a loan 6 years ago for 90K at like 5.75%. I'm paying around $900/month on it over 30 yrs. The calculators on Yahoo though say I can get a 90K loan now at 6% and only pay $540/month over 30 yrs. What is going on? Did I just get taken to the cleaners somehow? Is there anything I can do?
Yahoo calculators is just P&I. Meaning principal and interest. Your payment that you pay is PITI (principal interest taxes and insurance). But still 900 a month on 90K doesn't make any sense. That is huge. That would make you paying close to 45% of your payment to things other then P&I. It should be around 20-25% at most. Are you sure your interest rate was fixed? I'm trying to figure out why your payment is so high even calculating it with PITI. Its way way way high. Its been 6 years so chances are you dont have Mortgage Insurance. So you only have Taxes and Hazard. It only makes sense if you 90K loan is on a house that is worth 300K or maybe your insurance is for flood or earthquake. I would check your payment and see what it includes. Their is no reason to give the money to your bank so they can pay your bills. You are way pass that. Kill your escrow account. You are just giving them interest free money for a year to pay your bills. You shouldnt have this. Then your payment might be more to your liking. Just remember then you pay your hazard and taxes when they are due. Good Luck.
Tuesday, November 10, 2009
Best customer service for home loan
I have 2 questions. (1) which bank in india provides the best customer service for home loan ? (2) could you please tell the home loan interest rate (fixed rate) of HDFC and ICICI bank ? And finally , let me know the the name of the bank which provides the best customer service after taking a loan. please tell me the fixed rate not the floating rate . However, very surprisingly , HDFC bank did not reply me on a query (sent by email) i asked to open a new savings account ......i doubt how much they will be aggressive to serve for post home loan. do they have any active 24x7 customer service ? how do you get response from them ? any do they cover any life insurance ? if i die in my loan payment tenure ...will my family suffer ?
I am not looking for the low interest rate . I am ready to pay more provided if i get the best service from them. I'll not go for public sector bank or organization , they are very poor in terms of service. I am looking at private sector banks who has the 24x7 customer service cell active.
HDFC home loans has the best service after you have taken the loan. The present floating rate is 9.25%.
What home loan tenure should i opt for?
HI, i have taken home loan of 17,37,000/- Rs. from HDFC bank, with initial tenure of 20 years. (i have paid only 1 emi till now, so it's fresh loan). Now i was just wondering whether tenure of 10 years or 20 years will be benifetial? i did some calculations in following way for the period of 20 years: if i go for tenure of 10 years: -------------------------------------------- emi = 24,921/- so i pay emi for first 10 years, and then i start investing full 24,921/- (in MF, eqquities, etc). so my returns after 20 years (from now) will be 49,80,000/- (compounding with investment of 24,921/- pm for 10 years with return 10% pa avg.) if i go for tenure of 20 years: -------------------------------------------- emi = 19,126/- so i will have 5874/- (i.e. 24921-19126) cash available in my hand pm.m for investment for 20 years so my returns after 20 years (from now) will be 42,19,000/- (compounding with investment of 5874/- pm for 20 years with return 10% pa avg.) so, in above way, i see that tenure of 10 years will be benificial for me. But still i am not considering income tax benefit, and also am i doing compounding calculations in correct manner? can anyone help me to analyze my calculations and point me to the correct decision?
The basic rule is to commit yourself to the lowest payment possible and then pay the most you can. Or that you will want to pay. If you get in to trouble, like losing a job, you would want the lowest payment possible to avoid defaulting. Borrowing against your home to invest is putting your home at risk, at market risk. I hope you have a good day job. The income tax benefit is a big part of the calculation so ignoring that is a fault and suggests you haven't thought it out all that well. You have to believe that you will make more money investing than the interest rates will cost you, including the tax benefit. Please note that right now in the US stocks are at a LOSS for the last 10 years. So you would be out the interest cost for the loan for 10 years if you did this 10 years ago here.
I am not looking for the low interest rate . I am ready to pay more provided if i get the best service from them. I'll not go for public sector bank or organization , they are very poor in terms of service. I am looking at private sector banks who has the 24x7 customer service cell active.
HDFC home loans has the best service after you have taken the loan. The present floating rate is 9.25%.
What home loan tenure should i opt for?
HI, i have taken home loan of 17,37,000/- Rs. from HDFC bank, with initial tenure of 20 years. (i have paid only 1 emi till now, so it's fresh loan). Now i was just wondering whether tenure of 10 years or 20 years will be benifetial? i did some calculations in following way for the period of 20 years: if i go for tenure of 10 years: -------------------------------------------- emi = 24,921/- so i pay emi for first 10 years, and then i start investing full 24,921/- (in MF, eqquities, etc). so my returns after 20 years (from now) will be 49,80,000/- (compounding with investment of 24,921/- pm for 10 years with return 10% pa avg.) if i go for tenure of 20 years: -------------------------------------------- emi = 19,126/- so i will have 5874/- (i.e. 24921-19126) cash available in my hand pm.m for investment for 20 years so my returns after 20 years (from now) will be 42,19,000/- (compounding with investment of 5874/- pm for 20 years with return 10% pa avg.) so, in above way, i see that tenure of 10 years will be benificial for me. But still i am not considering income tax benefit, and also am i doing compounding calculations in correct manner? can anyone help me to analyze my calculations and point me to the correct decision?
The basic rule is to commit yourself to the lowest payment possible and then pay the most you can. Or that you will want to pay. If you get in to trouble, like losing a job, you would want the lowest payment possible to avoid defaulting. Borrowing against your home to invest is putting your home at risk, at market risk. I hope you have a good day job. The income tax benefit is a big part of the calculation so ignoring that is a fault and suggests you haven't thought it out all that well. You have to believe that you will make more money investing than the interest rates will cost you, including the tax benefit. Please note that right now in the US stocks are at a LOSS for the last 10 years. So you would be out the interest cost for the loan for 10 years if you did this 10 years ago here.
Thursday, November 5, 2009
Does home loan rates differ between online quotes and real one?
Does the home loan interest rate vary between online quotes and the real ones ?
- I am planning to buy a home - i have put an offer on a house and almost 100% done deal Now I have to look out for a home loan. I am looking at several online interest rate quotes what lenders are giving based on my facts. Some of them are sending quotes for 4.78% 4.5% , now does these rates change when we actually sign there application or do they have to stick with the rates what they have quoted me online ?
John Paul, First, I hope you contacted a good, reputable loan office BEFORE putting an offer on a home. And I hope you are getting good professional guidance through the process. The home buying process can be a thorny one if not handled properly...and the same is true of the home loan process. There is no question that there are some great deals out there...and some great rates.
But you have to think of the online deals as "big tent" offerings ... while they may well apply to your particular circumstance ... they also very well may not. Every lender, online or off, has their pool of offerings ... some broader than others. Each has certain criteria that must be followed in securing that loan. And not every loan is available for every borrower. Are you self employed? Do you have a regular salary? Do you get hourly pay? How long have you been working for your current employer? What other fixed debts do you have? Do you pay child support or allimony? Do you have any positive or negative offsetting factors? What are your credit scores? These things, and many other factors, impact what type of loans you may qualify for ... and what types may not be available to you at all. I've never been a fan of "shopping rates" for the simple reason that they don't tell the whole story. I remember a buyer of one of my listings "got a great deal" from a particular lender (which he happened to find online). Problem was when he got to closing NOTHING in the loan package bore any resemblance to the loan he THOUGHT he was getting! He thought it was a fixed rate loan ... it was not. The rate he'd been quoted was not the rate he actually got. He'd never heard of "negative amortization", and his loan had it. He never gave any thought to a "prepayment penalty" ... his loan had that, too! With a lot of work we were able to get the prepayment penalty waived (this is a BIGGIE because the penalty was over $7,000 in the event he sold his home or refinanced within the FIRST 3 YEARS of the loan!) Even though the terms were horrible, he DID close on his purchase ... and went right out and immediately refinanced his new home! My point is that WHAT YOU DON'T KNOW can cost you big time.
This is not something to "wing it" with. Talk to friends & coworkers & family who've dealt with reliable lenders in the past and ask for recommendations. Most certainly if you are working with a real estate agent, ask them for recommendations as well. We deal with lenders all the time and if the agent is experienced, they have an assortment of lenders they know are professional, reliable, ethical people ... and they also know who to avoid!!!! Talk to a few recommended lenders ... have them prequalify / preapprove you, making recommendations on programs they think your financial profile best fits. As long as the rates they offer are "in line" with with the market in general, I wouldn't worry about getting the best "deal". When you're looking at just raw numbers, you don't know what is being "cut" to get to that number. Quite often it's reliability and/or service. By the way, my preference is to ALWAYS deal with a lender who will shephard you through the process from application to closing on your purchase. As the process moves along, you want to have a real live person you can call to answer questions, follow up to be sure all the proper steps are being taken, and to hold accountable if/when they're not. Good luck! I know this is an exciting time and I hope all goes well for you!
- I am planning to buy a home - i have put an offer on a house and almost 100% done deal Now I have to look out for a home loan. I am looking at several online interest rate quotes what lenders are giving based on my facts. Some of them are sending quotes for 4.78% 4.5% , now does these rates change when we actually sign there application or do they have to stick with the rates what they have quoted me online ?
John Paul, First, I hope you contacted a good, reputable loan office BEFORE putting an offer on a home. And I hope you are getting good professional guidance through the process. The home buying process can be a thorny one if not handled properly...and the same is true of the home loan process. There is no question that there are some great deals out there...and some great rates.
But you have to think of the online deals as "big tent" offerings ... while they may well apply to your particular circumstance ... they also very well may not. Every lender, online or off, has their pool of offerings ... some broader than others. Each has certain criteria that must be followed in securing that loan. And not every loan is available for every borrower. Are you self employed? Do you have a regular salary? Do you get hourly pay? How long have you been working for your current employer? What other fixed debts do you have? Do you pay child support or allimony? Do you have any positive or negative offsetting factors? What are your credit scores? These things, and many other factors, impact what type of loans you may qualify for ... and what types may not be available to you at all. I've never been a fan of "shopping rates" for the simple reason that they don't tell the whole story. I remember a buyer of one of my listings "got a great deal" from a particular lender (which he happened to find online). Problem was when he got to closing NOTHING in the loan package bore any resemblance to the loan he THOUGHT he was getting! He thought it was a fixed rate loan ... it was not. The rate he'd been quoted was not the rate he actually got. He'd never heard of "negative amortization", and his loan had it. He never gave any thought to a "prepayment penalty" ... his loan had that, too! With a lot of work we were able to get the prepayment penalty waived (this is a BIGGIE because the penalty was over $7,000 in the event he sold his home or refinanced within the FIRST 3 YEARS of the loan!) Even though the terms were horrible, he DID close on his purchase ... and went right out and immediately refinanced his new home! My point is that WHAT YOU DON'T KNOW can cost you big time.
This is not something to "wing it" with. Talk to friends & coworkers & family who've dealt with reliable lenders in the past and ask for recommendations. Most certainly if you are working with a real estate agent, ask them for recommendations as well. We deal with lenders all the time and if the agent is experienced, they have an assortment of lenders they know are professional, reliable, ethical people ... and they also know who to avoid!!!! Talk to a few recommended lenders ... have them prequalify / preapprove you, making recommendations on programs they think your financial profile best fits. As long as the rates they offer are "in line" with with the market in general, I wouldn't worry about getting the best "deal". When you're looking at just raw numbers, you don't know what is being "cut" to get to that number. Quite often it's reliability and/or service. By the way, my preference is to ALWAYS deal with a lender who will shephard you through the process from application to closing on your purchase. As the process moves along, you want to have a real live person you can call to answer questions, follow up to be sure all the proper steps are being taken, and to hold accountable if/when they're not. Good luck! I know this is an exciting time and I hope all goes well for you!
Tuesday, November 3, 2009
Like to apply for a home loan in India
I live out side India, would like to apply for home loan in India? is that possible from HDFC or from SBI?
I dont have NRI account yet , what will be the paper requirement?
yes, u can take a loan from a bank in India for housing . But for that u have to have an account (NRI ) and your personal presence is required. Secondly You would need details of the property u wish to purchase and letter of agreement to sell from the seller.And u have to prove that u are capable to pay off the loan and you also have to have a guarantor in India. This is roughly all the docs. required. Further details will be given by the bank to whom u are going to apply for a loan
Original Documentation to be submitted for a home loan?
I have bought an apartment in a complex under construction in Ghaziabad, with possession expected in Jul-2011. I had opted for the Down Payment option and had paid the booking amount as well. I am also opting for the home loan from HDFC, again through the builder alliances. Apart from all other documents, the bank has asked me to submit all the original copies given by the builder. This includes: - Allotment letter. I have signed 2 copies - one goes to the builder and the other to the bank. I do not retain any copy with myself - Receipt of the booking amount - GPA in favour of my father I am not sure if this is the right thing, and if this is a normal practice. I have retained photo-copies of all the documents, but nothing in original. Can somebody guide me please.
Yes, You have to submit all the original documents. They will return your file after repayment of loan.
I dont have NRI account yet , what will be the paper requirement?
yes, u can take a loan from a bank in India for housing . But for that u have to have an account (NRI ) and your personal presence is required. Secondly You would need details of the property u wish to purchase and letter of agreement to sell from the seller.And u have to prove that u are capable to pay off the loan and you also have to have a guarantor in India. This is roughly all the docs. required. Further details will be given by the bank to whom u are going to apply for a loan
Original Documentation to be submitted for a home loan?
I have bought an apartment in a complex under construction in Ghaziabad, with possession expected in Jul-2011. I had opted for the Down Payment option and had paid the booking amount as well. I am also opting for the home loan from HDFC, again through the builder alliances. Apart from all other documents, the bank has asked me to submit all the original copies given by the builder. This includes: - Allotment letter. I have signed 2 copies - one goes to the builder and the other to the bank. I do not retain any copy with myself - Receipt of the booking amount - GPA in favour of my father I am not sure if this is the right thing, and if this is a normal practice. I have retained photo-copies of all the documents, but nothing in original. Can somebody guide me please.
Yes, You have to submit all the original documents. They will return your file after repayment of loan.
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