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Home Loan EMI Calculator: How to Reduce Your Home Loan EMI Burden

Buying a home is a wish that each of us has in our hearts. But as amazing as owning your own home, it is a solution that requires a large amount of investment. This investment usually includes a home loan that is gradually repaid back to the lender in the form of Home Loan EMI. Availing a home loan requires prior planning because it includes a relatively long tenure. It can weigh on household finances for a long time. An honest idea to calculate your EMI amount before signing on the line. A great tool like the Home Loan EMI Calculator can assist you out with this.

What is Home Loan EMI Calculator?

The Home Loan EMI Calculator is an online tool for calculating monthly EMI. Based on some details about home loans, the calculator will give you the exact amount EWI has to pay. It also includes a chart showing the payment schedule and details of the total payment.

Calculate Home Loan Eligibility

Advantages of Home Loan EMI Calculator

The Home Loan EMI Calculator is an all-purpose, simple, and seamless calculator that only requires you to enter 3 values. Attaining benefits is like being aware of what you are getting into. You have a clear picture of the amount of the loan that will be given to you, for how many months/years, the interest will generally be compensated. This way you can plan all your finances in advance.

With that in mind, you need to plan in advance where you will start paying the initial amount as well as the monthly EMI, which again is a task in itself.

How to Reduce Your Home Loan EMI Burden?

In a time when the fragile economy is weighing on the lives of most people, making regular loan payments is a challenge. For those who have taken out home loans where the EMI is very high, this challenge is even more difficult.

Reducing EMI payments seems like an effective way to survive in a bad economy. If, as a borrower, you’re also looking for ways to simplify your home loan by reducing your EMI payments, follow these tips-

Change your lender

When you take out a loan, you may have chosen a lender that offers you high-interest rates on your home loan. Now, when you’ve found a new lender who wants to offer significantly lower interest rates, consider replacing your lender’s middle loan. Even if you can’t find a lender with a lower interest rate on your home loan, you should look for a lender who wants to extend your repayment period. Before switching lenders, use an online home loan EMI calculator to find out how much your EMI could drop.

Changing lenders is very convenient. All you have to do is contact your existing and new lenders and request a loan balance transfer. Refinancing a home loan at a lower interest rate is one of the easiest ways to reduce EMI.

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Looking for a home loan in India?

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Home First Finance- Easy Home Loans

Buying a home is not an easy decision. But guess what is more difficult? Getting a home loan sanctioned. There are many lending options available in India to get a home loan like banks, NBFCs (Non-Banking Financial Institutions) or private lenders. All these offer a competitive interest rate but that does not guarantee that you will get the best deal for home loan.

Why HomeFirst?

HomeFirst is one of the best companies for home loans that keeps their customers in their top priority. Let’s see the best features of HomeFirst-

Best Customer Service- HomeFirst has the best customer service. Our relationship manager gets in touch with you when you apply for a home loan. The same manager will continue with your service or any other queries you may have during the loan sanctioning process.

Auto Prepayment- If you want to prepay a fixed amount of your loan each month, HomeFirst has a special Auto Prepay option that helps you to automate your prepayment in addition to EMI. The best benefit for that is there are no additional charges for auto prepayment of your loan amount.

Flexible repayment options- HomeFirst offers flexible repayment options, such as the ability to prepay your loan without any prepayment charges. This gives you more control over your finances. You can also check out our Home Loan Prepayment Calculator to check how these options will affect your finances.

No Prepayment Charges- Most of the lenders will charge on prepayment of loan amount. HomeFirst is one of those lenders where you don’t have to pay prepayment charges for repayment of home loan early.

Quick and easy loan process- HomeFirst has a simple online application process, basic eligibility criteria, and a minimal documentation requirement. This can help you get your loan approval quickly and easily.

Digitalised Process- HomeFirst has a digitalised process for loan approval. You just need to fill out the application link with all the necessary details. With this done, you can rest assured that our representative will get back to you with all the details in just 48 hours.

Minimum Documentation- You only need to submit basic documentation when you apply for a loan against property with HomeFirst. This saves time and expedites verification.

No Income Proof- HomeFirst does not require income proof to sanction a loan. This can be a great option for self-employed or informal salaried borrowers.

Low interest rates- HomeFirst offers competitive interest rates on home loans. This can help you save money on your monthly payments. Lower interest rate helps you lower your overall cost of buying a home.

Online customer portal- HomeFirst has a dedicated mobile application and online customer portal where you can track your loans, access your loan statements, and raise service requests. This makes it easy to manage your loan from anywhere.

Average Turnaround Time- The average turnaround time for home loan approval is 48 hours. Loan Enhancement- You don’t need to worry when the value of your property has increased. HomeFirst will provide you with loan enhancement in case of need to your existing amount.

HomeFirst has evolved with the world making the whole process paperless and convenient for you. Our customers come as a priority to us and we make sure that they get the best customer service. Finally, to make the process even simpler, Customer Portal helps you in tracking your loan and getting updates regularly.

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Applying for Home Loan – Know more about Home Loan Terms

Home Loan Terms

Buying a home is one of the biggest financial decisions that you and your family would ever make and for most of us, taking a home loan is the sole way to bring alive our aspirations of homeownership. A home loan is an amount that an individual borrows from a bank or a housing finance company (HFC) for the purpose of buying a house / constructing a house. This amount has to be repaid in the form of easy monthly installments (EMI). The property is taken as a security against the borrowed amount by the financial institution. Being well aware of the home loan terms works is an effective way to avoid any unwanted surprises when you actually apply for one.

Here are 10 terms about Home Loan Terms you should know before you sign on the dotted lines!

The eligibility criteria for the Home Loan 

Do you qualify for a home loan? If yes, how much amount are you eligible for? The lender will assess your eligibility depending upon your income & repayment capacity. Some of the other factors that are taken into consideration while evaluating a home loan are age, educational qualification, financial position, number of dependents, the income of your co-applicant, job stability & previous repayment track record. Some lenders provide a home loan eligibility calculator that will give you a quick assessment of your loan eligibility.

The Rate of Interest (ROI)

Your rate of interest will determine your interest outflow on your loan amount. Usually, the interest rates range between 8.5% to 14.5% for a Home Loan. Your rate of interest will depend on the strength of your home loan process. Quick tip – furnish as many documents as possible which clearly proves your income and property details. This will make your application more creditworthy and the lender and will offer you a better rate of interest.

Floating ROI on Home Loan

Floating Rate – the interest rate is generally linked to the lender’s benchmark rate. In case of any change in the benchmark rate, the rate of interest would also change accordingly unlike a Fixed ROI.

Fixed ROI on Home Loan

In a fixed-rate loan, as the name suggests the rate of interest is generally fixed when you are taking a loan. This fixed rate of interest is applicable throughout the complete tenure of the loan, but in some cases, lenders have small print that says that the fixed rate can be changed at intervals such as 10 years depending on market conditions.

Additional costs to be incurred

Besides paying EMI, there can also be other service & processing costs that the lender can levy upon the borrower when applying for the loan. It is important that you discuss the same with the lender and have a thorough understanding of these charges before applying for the loan.

Set your tenure according to your EMI budget

You can take a home loan for a maximum tenure of 30 years. Your home loan tenure affects your EMI in a significant manner, e. higher the tenure – lower the EMI and vice versa. There is no point in dragging your home loan for 25 years when you have the capacity to pay it off in 15 years. Similarly, if you wish for a lower EMI amount, then go for a longer tenure.

Repay regularly

Once your home loan has been approved, you have to keep in mind that you need to repay it on time & hence it is advised that you follow a strict budget so that there is no problem or irregularity in paying the EMIs. You need to channel your resources towards regular & timely repayment of the loan in order to maintain a good credit bureau score.

List of crucial & mandatory documents

Following are some of the mandatory documents required for a home loan:

KYC documents

Aadhaar Card

Voter ID

Valid Passport

Driving License

PAN Card

Credit or Income documents

3 recent salary slips

Form 16

IT returns for last 3 years

Shop Act License or any other business license (applicable for self-employed applicants)

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Your Responsibilities as a Borrower

Congratulations on buying your property! Amidst all the celebration, you must realize that you have just made a huge commitment, and the new responsibilities of servicing the loan will continue for some time. In this article, we’ve compiled a list of things you need to remember as the months pass ahead.

Timely repayments:

Please ensure that there is always enough balance in your account for the EMIs. A single defaulted payment comes at a heavy price: not only in financial terms, but it will also impact your Credit Score.

Pre-pay as and when possible:

We encourage our customers to complete all his responsibilities to get rid of their home loan burden faster. Remember, whatever you pre-pay will directly go towards reducing your principal. In fact, just to make it easier, RBI has also removed any charges on prepayments.

Take advantage of tax benefits:

There are several tax benefits available under Section 24 and Section 80 C of the Income-tax Act, which will help you save on the interest and the principal amount repaid.

Tenure reduction is better than EMI reduction:

If you opt to reduce your EMI amount after pre-paying some part of the loan, you end up paying more interest. If it’s possible, try to pay the same EMI, as its higher amount every month will reduce your tenure and save a sizable amount on your interest payments.

Paperwork is important:

Don’t lose your documents like sanction letters, loan agreements, and so on. Until your loan has been fully repaid, make sure all your paperwork is in order, and that you have all the details of the repayment records. Once your loan account is closed, make sure you get a letter from us saying that your loan has been repaid in full and you are in possession of the original property documents.

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Get your own home with Home First Finance.

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What is a Mortgage? Know the Basics of Mortgage Loan

In life, we experience certain situations, from where we cannot avoid some expenses. A number of these expenses include business expansion, marriage, medical emergencies, or education. One such solution to satisfy these needs would be to avail of a Mortgage loan. It is a secured loan. A borrower must mortgage a property with the lender to avail this sort of loan against the property. The collateral is held by the lender until full repayment of the loan is completed. Borrowers repay the loan in fixed monthly payments called equated monthly installments (EMIs).

What is a Mortgage Loan?

It is just a loan against a property that you simply own. The property in question might be your house, a shop, or maybe a non-agricultural piece of land. Banks and non-banking finance companies offer this. The lender provides you the principal loan amount and charges you an interest thereon. You’ll repay the loan in affordable monthly installments. Your property is your guarantee and it stays in possession of the lender until the loan is repaid fully. As such, the lender features a legal claim over the property for the tenure of the loan, and if the borrower defaults in paying off the loan, the lender has the right to seize it and auction it off.

Types:

There are various forms of mortgages:

Simple Mortgage: In such type, the borrower must sign an agreement stating that if he/she is unable to pay back the borrowed amount in a specified time duration, then the lender can sell the property to anyone to get a refund

Mortgage by Conditional Sale: Under it, the lender can put a particular number of conditions that the borrower must follow in terms of repayment. These conditions may include the sale of the property if there’s a delay within the monthly installments, a rise within the rate of interest due to delay in repayment, etc.

English Mortgage: In this, the borrower has got to transfer the property within the name of the lender at the time of taking money, at a condition that the property would be transferred back to the borrower once the entire amount is paid back

Fixed-Rate Mortgage: When the lender assures the borrower that the rate of interest will remain an equivalent throughout the loan period is named Fixed-Rate Mortgage

Usufructuary Mortgage: this type of mortgage gives a benefit to the lender. The lender has the proper over the property for the due course of the loan period, he can put the property on rent or use it for other purposes until the repayment of the quantity. But the most rights lie with the owner himself

Anomalous Mortgage: a mixture of various sorts of mortgages is named an Anomalous Mortgage

Reverse Mortgage: during this case, the lender lends money to the borrower on a monthly basis. The whole loan amount is split into installments and therefore the lender gives the borrower that money in installments

Equitable Mortgage: during this sort of mortgage, the title deeds of the property are given to the lender. This is often a standard phenomenon within the banking mortgage loans. It is done to secure the property

What is the Mortgage Agreement?

A mortgage loan agreement sets the conditions of the agreement between a bank and a borrower. When marked, the agreement gives the borrower access to the money. Such an agreement also gives the moneylender the right to claim the sold property if the borrower doesn’t pay the loan’s installments.

Importance:

Buying a house is probably going to be the greatest purchase you’ll ever make and a home loan will be your biggest obligation. Since you can spread the repayments on your home loan over many years, the amount you’ll repay each month is more reasonable and affordable!

When individuals take out their first loan, they usually select a long term. However, there are no guidelines about this and as we are living longer and the retirement age is going up, a 30-year mortgage is getting more normal. This can help cut your monthly payments down, yet on the other side, you’ll be burdened with the obligation for more.

It worth going for the briefest term you can afford – not only will you be mortgage-free sooner but you’ll also spare yourself a huge number of pounds in interest. Also, remember, when you remortgage and change to another product, you shouldn’t settle on another 25 or long term.

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Choose the right property for yourself and your family.

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Apply for a Housing Loan with Home First India.

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All You Should Know About Home Loan Disbursement Process

For most middle-class families it is a dream to live in their own house, be it an apartment or a row house built over a plot of land. But constructing or buying a home can be a grueling process, figuring out the best deal fulfilling all your requirements. Even if you find the desired property, its expensive rates may blow your budget. And if you do find the property that fits your budget, you may have to compromise on the location. Even in case you have land to build your dream home, construction costs may curtail you down.

Almost all home buyers have to face the nitty-gritty involved in the home construction or buying process, what adds to the buyer’s plight are the soaring property rates. There is no way one can imagine buying a home or constructing one without taking a home loan. Let’s see about home loan disbursement process.

When it comes to home loans the first thing that pops up in mind is the formalities involved in the home loan disbursal process. Let’s peek into those various formalities involved in the home loan disbursal process and various other factors to be considered before you finally sign the agreement with the lender.

Home Loan Disbursement Process

The home loan disbursement process goes through several levels requiring thorough verification of the documents and detailed technical and legal valuation of the property.  After which bank will take a call upon your loan home loan disbursement status.

The home loan disbursement process can largely be segmented into 3 phases- Application, Sanction, and Disbursement.

Home Loan Application 

The home loan disbursal process is like any other loan process. It begins by filling an application form which is mostly like a KYC form. But, you would also have to provide complete details regarding your income, property, or investments in the application. Apart from basic information, you may have to attach the following documents along with the form:

Applicant’s/co-applicant’s passport size photographs

Applicant’s/co- applicant’s proof of identity

Residence proof of the applicant

Applicant’s age proof

Applicant’s office address

Copy of last 6 months’ Bank statements

A copy of previous 3 months’ salary slip

Copy of 2 – 3 years of Income Tax Returns

Copy of Form 16

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Read this to know your responsibilities better as a borrower.

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You can now get your home loan approved within 48 hours.

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How much savings do you need to put in for the downpayment of a house?

Let’s start from the basics-

What is a downpayment?

The downpayment amount is the sum of money you need to put towards purchasing a home. This amount is not financed through home loans or any other kind of loan. Downpayment helps you to reduce the money you need to borrow. It is also referred to as Own Contribution or OCR in the mortgage industry. Additionally, more significant down payments are preferred by lenders as that assures them of lesser chances of default. It is a mandatory process to get your home loan financed.

What are the factors that affect downpayment for a property?

The amount of savings you need to put down for a downpayment on a house will vary depending on several factors like-

Price of the property – The most crucial factor when buying a home is the price of the property. Typically, the downpayment amount required by the lender is mainly 20-40% of the price of the property. However, in some cases, it can be as low as 10% of the property value, depending on the terms and conditions.

Type of loan – The type of loan you choose for a home loan can affect the down payment amount required for approving your home loan. Home loans offered by RBI-registered lenders such as banks and NBFCs are secured loans, and so the downpayment required in such cases varies from 10-40%. Some schemes run from time to time, like Pradhan Mantri Aawas Yojna, aimed towards making housing affordable. In such cases, the downpayment amount required is merely 3-10%.

Credit score – Credit Score plays a vital role in how much downpayment you need to make to get a home loan approved. Usually, the higher the credit score, the lower the required downpayment amount. This is because if the credit score is less than 600, lenders perceive borrowers as risky loans.

How much amount should you save for downpayment of a home loan?

Look for your requirements – You will have your requirements according to your income, family size, location, and so on when you decide to buy your own home. So, keep in mind the crucial needs and get an idea of the property rates nearby.

Decide on your budget – When you get an idea of property rates nearby, you will be able to make a balance between your needs and budget. So, finalize the basic details like location, type of property (flat/land, 1/2/3 BHK), and so on. This will help you decide the savings amount you require.

Savings Amount – When you get an idea of the savings amount required, you estimate what amount of savings each month you need to keep aside. This will help you better understand when to make a downpayment and get a lender to finance your home.

Decide on a down payment percentage – Evaluate your financial situation and decide on the percentage which you would like to downpay, like 10%, 20% and so on. The higher the downpayment percentage, the less will be the total interest amount, loan tenure, and total repayment amount.

Ultimately, you are going to buy a house. It depends upon your budget and requirements, such as space, locality, and so on. So, considering these factors, you will now be able to get an estimate of your budget. This budget will also help you choose your property. Based on these factors, you will now be able to calculate how much savings you need to pay the downpayment on your house.