Archive for June, 2009
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When does a mortgage or loan become necessary?
A mortgage or home loan becomes necessary when you do not have the required funds in hand. The need to tap the necessary funds to close the deal on a dream home or property creates the need to identify a resource. The mortgagor or borrower owes the obligation secured by the mortgage.
The mortgager could be […] -
Rates of interest for housing finance
The rates of interest could be either fixed or floating, depending on the lending institution. The terms are self explanatory in nature and are very rarely interchangeable. Some lending institutions offer loan seekers a fixed rate of interest. This means the rate of interest remains unchanged for the entire duration or term chosen for re-payment […]
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Other costs that usually accompany a home loan or mortgage
Home loans and mortgages are usually accompanied by:
a) This fee is payable to the lender of the loan amount when applying for the loan. The processing fee can be a fixed amount that is not linked to the loan amount or a fixed percentage of the loan amount, fixed by the lending institution. The ruling […] -
Types of home loans
• Home Purchase: These are the basic home loans where the purchase of a new home is financed.
• Home Improvement: These loans are given for repair work and renovations in a home that is owned by the person seeking the loan.
• Home Construction: These loans are available for the construction on purchased land
• Home Extension: These loans are extended […] -
Tax benefits of home loans and mortgage
The tax benefits applicable to home loans and mortgage influence both the principal, as well as interest rate applicable. Principal amount set by the lender for the repayment of the loan or mortgage along with other savings like PF, PPF, life insurance etc is eligible for deduction from gross income. This helps savings in […]
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Terms used in Housing Finance and mortgage
Equated Monthly Installment or EMI is the monthly repayment to the lending institution, till the loan is paid back. It comprises of a portion of interest and the principal amount.
Floating Rate: Rate of interest which varies with the market lending rate is called the floating rate. This rate of interest includes an element of […]