A Smaller Down Payment, and No Mortgage Insurance Required – The New York Times, 0

A Smaller Down Payment, and No Mortgage Insurance Required

0 down mortgage

It was a year of firsts: In 2015, Kristian and Michele Klein welcomed their first child, a daughter, and bought their first home — a freshly renovated four-bedroom Cape Cod in Glen Head, N.Y.

But instead of making a traditional down payment of 20 percent — the magic amount often needed to avoid the added cost of mortgage insurance — they put down just 10 percent, still a significant sum, on their $685,000 house. Yet they managed to circumvent the insurance, saving more than $250 a month.

How did they do it? They took out one loan equal to 80 percent of the purchase price, and another loan for 10 percent — something that has traditionally been called a piggyback loan or a second mortgage.

With home prices on the rise in many parts of the country, coming up with 20 percent can seem an insurmountable task for prospective homeowners of all income levels. Last year, about 65 percent of all home buyers — or 1.9 million borrowers — put down less than 20 percent, according to an analysis by Inside Mortgage Finance that covered about 80 percent of all mortgages and excluded jumbo loans.

While most lenders require mortgage insurance on loans with smaller down payments to compensate for their extra risk, there are several options that do not. A few new programs have become available postrecession, while some older strategies have been resurrected, including the piggyback loan. All let borrowers avoid the added monthly expense of insurance, which generally costs from 0.3 percent to more than 1 percent of the loan amount annually. But borrowers may pay a slightly higher interest rate instead.

Avoiding mortgage insurance won’t always be possible. Nor will it always be the best or most economical decision. But the good news is that prospective home buyers have options, whether through a traditional bank, a credit union or a newer alternative lender.

The Kleins said that having the extra cash on hand, rather than tied up in the house, gave them a stronger sense of security, particularly with a new baby.

A Few Ways Around Mortgage Insurance

Here are several mortgage options for borrowers with smaller down payments, some with and some without mortgage insurance.

0 down mortgage

“We would have some more wiggle room as opposed to giving and using all of your savings for the home,” said Mr. Klein, 34, who works for a consulting firm that represents publicly traded companies. “I would rather have the money in my pocket to work with.”

The 20 percent down payment requirement is etched into the charters of both Fannie Mae and Freddie Mac, which back or purchase most mortgages in the United States up to $417,000 (or $625,500 in higher-cost areas). Home buyers who want to borrow more than 80 percent need to buy insurance to protect the agencies, or another party must provide it for them.

Most commonly, the borrower pays the insurance in the form of a monthly premium, which must be automatically canceled once the mortgage balance reaches 78 percent of the home’s original value (though homeowners can petition to have it dropped once it reaches 80 percent). Mortgages from the Federal Housing Administration, however, continue to charge insurance for the life of the loan.

Alternatively, lenders may pay for the insurance, though that generally raises interest rates for the borrowers — perhaps by 0.375 to 0.5 percentage points, loan officers said, depending on the borrowers’ credit history, their down payment and other factors. The downside is that the rate is higher for the life of the loan, unless the borrower refinances.

A new program from Bank of America, in partnership with Freddie Mac and a group called Self-Help, avoids the insurance altogether, even though it permits down payments as low as 3 percent. But there are some significant limiting factors. Families in the New York area generally cannot earn more than $80,700, the area’s median income; the mortgage amount cannot exceed $417,000; and interest rates are marginally higher than those of traditional mortgages (but often better than other competing options).

At the opposite end of the spectrum is Social Finance, the lender known as SoFi, which got its start in student loans. Eligible home buyers can put down as little as 10 percent on amounts of up to $3 million — without mortgage insurance — though those loans will command a slightly higher interest rate.

Other jumbo mortgage lenders, which generally make loans above Fannie’s and Freddie’s limits of $417,000, are also providing loans with slightly smaller down payments.

“Where we’ve seen the biggest change is in the appetite of jumbo lenders in the private sector to allow for 90 percent financing, which we hadn’t seen be this widespread since before the crash of 2007 to 2008,” said Mark Maimon, a vice president with Sterling National Bank in New York, which acts as a lender that can also work with other loan providers. Jumbo lenders sometimes require insurance, but not always, since they aren’t selling their loans to the government agencies. But they may require a marginally higher interest rate.

0 down mortgage

Then there are the thousands of credit unions across the country that have a little more leeway in offering low-down-payment loans without insurance, largely because they keep their loans on their own books.

“They can listen to the story of the borrower,” said Bill Hampel, chief economist and chief policy officer at the Credit Union National Association. “That doesn’t mean they make riskier loans, but they can balance loan requirements off one another. If they are weak in one category but strong in another,” the credit union can still make the loan, he said.

At CommunityAmerica Credit Union, in Lenexa, Kan., for example, borrowers have several options. They can put as little as 10 percent down using one loan without mortgage insurance, or they can take an initial mortgage for 80 percent of the purchase price and a second loan for up to 15 percent, similar to what the Klein family did. “We are going to run the scenarios,” said Carrie O’Connor, chief lending officer. “You need to look at each individual situation and evaluate it.”

The piggyback or second mortgage — not to be confused with the versions misused during the housing bubble, which permitted up to 100 percent financing — can take different forms. The second loan may be a home equity line of credit, which typically carries a variable rate that is based on the prime rate plus an additional margin set by the lender. It generally requires only interest-only payments, but adjusts to a principal and interest payment after 10 years. (Fixed-rate second mortgages, say over a 20-year term, may be also available, but rates are usually higher than the line of credit.)

Using the line of credit can be a more economical option, even when factoring in principal payments. But the buyers need to be disciplined about paying down the principal. And there’s the risk of rising interest rates, which is a reason some loan officers suggest using this option as shorter-term financing.

“This is a great option for those borrowers that have high bonus or commission income who eventually want to pay off the second mortgage down the road and end up with just one mortgage,” said Deb Klein, a loan consultant at Caliber Home Loans in Chandler, Ariz. Or they may be waiting for their previous home to sell, which will free up cash to pay down the loan.

SoFi factors its costs into one interest rate and uses nontraditional means to vet borrowers, forgoing credit scores and instead looking at something in plain view: extra cash. SoFi requires income documentation for the last two years, and it reviews prospective borrowers’ debt load in relation to their ability to pay the debt under consideration. But SoFi likes to see at least $1,500 left over each month after all debts, including the mortgage, are paid. “We don’t focus so much on ratios as we do dollars of cushion,” said Mike Tannenbaum, who oversees SoFi’s mortgage business. “We underwrite mainly on free cash flow.”

Nicole Armstrong, a corporate employment lawyer, and her husband, who works for a software services firm, recently purchased a three-bedroom white stucco home in the Easton Addition neighborhood of Burlingame, a costly market just outside San Francisco.

Although they have two healthy incomes, a good portion of their assets is locked up in privately held companies, so securing a jumbo loan for the home proved challenging. But SoFi — which Ms. Armstrong said she learned about from a billboard along Highway 101 — ultimately let the family make a down payment of 15 percent and charged a competitive interest rate of 3.75 percent. “It allowed us to put a little less down compared to what the market trend was,” she said. “And we didn’t need mortgage insurance.”

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A version of this article appears in print on March 12, 2016, on Page B1 of the New York edition with the headline: A Low Down Payment, No Insurance Required. Order Reprints | Today’s Paper | Subscribe

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Trying to get your best mortgage rate is often frustrating. You are about to ask for more money than you’ve seen in your life. Your hopes and dreams are riding on a stranger’s decision.

Thank you, thank you, THANK YOU — for alllll the detailed and useful information you make available to us! You’re invaluable Deborah M. from St. Louis

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Hi, my name is Kate. I am also known as Ask Kate and Super Kate. I author this free informational website to answer mortgage questions and make sense of the bewildering home loan process.

Let me put your mind at ease. You see, as a former mortgage broker for more than 20 years, I helped people finance their homes. As you can imagine, I became very adept at solving problems!

So even though your banker’s lingo may be unfamiliar, I know how to translate the secret language of mortgage lending. Welcome to my website. I will be your guide!

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Current Mortgage Rates Today – View The Best Mortgage Rates, loan rates mortgage.#Loan #rates #mortgage

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Mortgage 101: A Mortgage Resource Guide

This guide will help first-time home buyers and seasoned veterans get the information they need to make the correct financial decision regarding their mortgage. Our goal is to provide information and resources for everything you need to know about the mortgage process. Whether you are shopping for your first home or you are already established in a existing home, this page can be your guide. Take the necessary steps to make purchasing your first home or maintaining your existing home a seamless [Read More. ]

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Home equity loans allow homeowners to take out a loan using the equity accumulated in their home as collateral. Home equity loans give you quick access to money that can be used for a home remodeling project, medical bills or college tuition. A home equity loan can be more [Read More. ]

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Is it Possible to get a Home Equity Loan With Bad Credit?

Getting a home equity loan with poor credit is more difficult, but not impossible. Before you decide to make improvements to your home or decide that you need some quick cash, you need to find out if a lender is willing to give you a home improvement loan and how your loan [Read More. ]

New mortgage rules: the questions you will be asked, mortgage questions.#Mortgage #questions

New mortgage rules: the questions you will be asked

Mortgage questions

Mortgage questions

12:40PM BST 25 Apr 2014

Planning to buy a home or change or move your existing mortgage? If so, brace yourself for a long wait to see a mortgage adviser, three-hour interviews at the bank and forensic analysis of your daily spending habits thanks to new lending rules that come into force tomorrow.

Even after jumping through all those hoops, success is not guaranteed experts have warned thousands of buyers and home owners are likely to be rejected because they do not meet the new requirements.

The City regulator, the Financial Conduct Authority (FCA), has introduced the new rules, known as the Mortgage Market Review, to ensure borrowers are issued with mortgages they can afford both now and in the future. The FCA was concerned that lenders were making it too easy to get a mortgage before the financial crisis. Many households borrowed too much money and found they were unable to keep up their repayments when the financial crisis struck.

So-called self-cert loans, where borrowers declared their income but did not have to prove or certify it, were common and people routinely exaggerated earnings to borrow more. Interest-only loans also caused problems. Borrowers flocked to these deals because their monthly repayments were lower, but they had no way to repay the capital at the end of the loan.

To ensure safer lending in future, mortgage providers are now responsible for assessing whether customers can afford the loan in the long term. This includes buyers and those who are remortgaging and want to increase the size of the loan, vary the time frame or transfer it to a new property.

Related Articles

As part of this, the vast majority of borrowers must take formal advice, either from the lender, a mortgage broker or a financial adviser.

The adviser will assess a borrower s financial situation, determine whether they can afford a loan and help decide which mortgage is best.

Banks and building societies are understaffed because advisers must have specialist qualifications. Most lenders used unqualified sales staff to sell mortgages to customers previously and are still in the process of recruiting or training qualified advisers.

Already there are long delays for appointments in some areas of the UK, particularly London and the South East where the property market is booming. Brokers and financial advisers are seeing an increase in inquiries as a result, adding to their own wait times.

Some borrowers who already know exactly which mortgage they want may be able to apply directly online or by post without taking advice; however, they must be able to provide full details of the deal without any input from an adviser. In addition high net worth borrowers , with an annual income of more than £300,000 or assets worth more than £3m, will be able to take out a loan without advice.

The 27 questions you may be asked

How much do you spend on:

-TV and Internet subscriptions

-Essential and non-essential travel

-Clothing and footwear

Do you have children?

Are you planning to start a family or have more children?

Do you have any plans to leave your job, start a business or become self-employed?

Do you expect your income to fall over the next few years?

Have you ever taken out a payday loan?

Do you ever gamble?

There are already reports that those who do need advice and secure an appointment with their lender are being grilled for up to three hours about their income and spending habits.

Santander and Nationwide said the interviews would take up to two and a half hours on average. NatWest, Lloyds Bank, Halifax and Yorkshire Building Society said they would take around two hours and HSBC said 90 minutes. More complex applications may take even longer.

Applicants will need to supply detailed proof of earnings such as wage slips and bank statements going back at least three months, but more likely six months. Self-employed and contract workers face some of the toughest questions they are being asked for earnings track records going back up to three years and evidence that they will have work in the future, such as a formal offer or contract extension.

In addition, lenders have developed intrusive affordability questionnaires that go far beyond monthly bills and essential living expenses.

Many lenders now want to know whether a borrower gambles, has taken a payday loan in the past, regularly visits restaurants or has pets or expensive hobbies.

Some are drilling down to the finest details of people s outgoings, asking how much they spend on personal grooming, haircuts, cleaning products, parking and eye care. Some may even want to know about costs that could arise in the future following major life changes such as starting a family or becoming self-employed.

Aaron Strutt, of mortgage broker Trinity Financial, said lenders had now completely ditched the old measure of affordability income multiples for lending decisions. Where lenders used to advance five or six times a borrower s annual income, they now use affordability calculators that take account of all spending, he said. The checks being applied are much more thorough.

On top of all this lenders will apply more rigorous stress tests to ensure borrowers will still be able to afford their repayments when interest rates rise.

Lenders will have to consider the effect of likely future interest rates on affordability over a minimum period of five years, and justify the method used to forecast rates.

Many lenders are being cautious with their forecasts and assuming mortgage rates will have reached between 6pc and 7pc in five years time. This will require borrowers to have a considerable cushion in their disposable income to show they will be able to meet their repayments in the future.

Second Mortgages: Basics, Pros, and Cons, second mortgage.#Second #mortgage

Second Mortgages – Advantages and Disadvantages

Second mortgage

A second mortgage is a loan that lets you borrow against the value of your home. Your home is an asset, and over time, that asset can gain value. Second mortgages, also known as home equity lines of credit (HELOCs) are a way to put that asset towards other projects and goals.

What is a Second Mortgage?

A second mortgage is a loan that uses your home as collateral – similar to a loan you might have used to purchase your home.

The loan is known as a “second” mortgage because your purchase loan is often the first loan that is secured by a lien on your home.

Second mortgages tap into the equity in your home, which you might have built up with monthly payments or through market value increases.

Loans can come in several different forms.

Lump sum: a standard second mortgage is a one-time loan that provides a lump sum of money you can use for whatever you want. With that type of loan, you’ll repay the loan gradually over time, often with fixed monthly payments. With each payment, you pay a portion of the interest costs and a portion of your loan balance (this process is called amortization).

Line of credit: it’s also possible to borrow using a line of credit, or a pool of money that you can draw from. With that type of loan, you don’t ever have to take any money – but you have the option to do so if you want to. You’ll get a maximum borrowing limit, and you can continue borrowing (multiple times) until you reach that maximum limit.

Like a credit card, you can even repay and then borrow again.

Rate choices: depending on the type of loan you use (and your preferences), your loan might come with a fixed interest rate that helps you plan your payments for years to come. Variable rate loans are also available and are the norm for lines of credit.

Advantages of Second Mortgages

Loan amount: second mortgages allow you to borrow a large amount. Because the loan is secured against your home (which is generally worth a lot of money), you have access to more than you could get without using your home as collateral. How much can you borrow? It depends on your lender, but you might expect to borrow (counting all of your loans – first and second mortgages) up to 80% of your home’s value.

Interest rates: second mortgages often have lower interest rates than other types of debt. Again, securing the loan with your home helps you because it reduces the risk for your lender. Unlike unsecured personal loans like credit cards, second mortgage interest rates are commonly in the single digits.

Tax benefits: in some cases, you’ll get a deduction for interest paid on a second mortgage. There are numerous technicalities to be aware of, so ask your tax preparer before you start taking deductions. For more information, learn about the mortgage interest deduction.

Disadvantages of Second Mortgages

Of course, life is full of tradeoffs. Be aware of the pitfalls of using a second mortgage. The costs and risks mean that these loans should be used wisely.

Risk of foreclosure: one of the biggest problems with a second mortgage is that you have to put your home on the line.

If you stop making payments, your lender will be able to take your home through foreclosure, which can cause serious problems for you and your family. For that reason, it rarely makes sense to use a second mortgage for “current consumption” costs such as entertainment and regular living expenses – it’s just not sustainable or worth the risk.

Cost: second mortgages, like your purchase loan, can be expensive. You’ll need to pay numerous costs for things like credit checks, appraisals, origination fees, and more. Even if you’re promised a “no closing cost” loan, you’re still paying – you just won’t see those costs transparently.

Interest costs: any time you borrow, you’re paying interest. Second mortgage rates are typically lower than credit card interest rates, but they’re often slightly higher than your first loan’s rate.

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Second mortgage lenders take more risk than the lender who made your first loan. If you stop making payments, the second mortgage lender won’t get paid unless and until the first lender gets all of their money back.

Common Uses of Second Mortgages

Choose wisely how you use funds from your loan. It’s best to put that money towards something that will improve your net worth (or your home’s value) in the future – because you need to repay that loan.

  • Home improvements are a common choice because the assumption is that you’ll repay the loan when you sell your home with a higher sales price
  • Avoiding private mortgage insurance (PMI) might be possible with a combination of loans – just make sure it makes sense compared to paying – and then canceling – PMI
  • Debt consolidation: you can often get a lower rate, but you might be switching from unsecured loans to a loan that could cost you your house
  • Education: as with other situations, you’re creating a situation where you could face foreclosure. See if standard student loans are a better option

Tips for Getting a Second Mortgage

Shop around and get quotes from at least three different sources. Be sure to include the following in your search:

Get prepared for the process by getting money into the right places and getting your documents ready. This will make the process much easier and less stressful.

Beware of dangerous loan features. Most conventional loans do not have these problems, but it’s worth keeping an eye out for them:

How Does Refinancing Work, The Truth About, mortgage refinancing.#Mortgage #refinancing

How Does Refinancing Work?

Mortgage refinancing

Fundamental mortgage Q A: “How does refinancing work?”

When you refinance your mortgage, you are essentially trading in your old loan for a fresh one with a new interest rate and term. And possibly even a new balance.

You may elect to receive a new mortgage from the same bank that held your old loan previously, or refinance your loan with an entirely different lender.

It s certainly worth your while to shop around if you re thinking about refinancing, as your current lender may not have the best deal.

Regardless, the bank or mortgage lender that grants you the new mortgage essentially pays off your old mortgage with a new mortgage, thus the term refinancing.

In a nutshell, most borrowers choose to refinance their mortgage either to take advantage of lower interest rates or to cash in on equity accrued in the home.

Two Main Types of Refinancing

There are two main types of refinancing; rate and term refinancing and cash-out refinancing (click the links to get in-depth explanations of both).

Rate and Term Refinancing

Original mortgage: $300,000 loan, 30-year fixed @6.25%

New mortgage: $300,000 loan, 15-year fixed @4.50%

To put it simply, a rate and term refinance is basically the act of trading in your old mortgage(s) for a new shiny one without raising the loan amount.

In my example above, the refinancing results in a shorter-term mortgage with a lower interest rate. Two birds, one stone. It will be paid off faster and with less interest. Magic.

Reasons for carrying out this type of refinancing include securing a lower interest rate, moving out of an adjustable-rate mortgage into a fixed-rate mortgage (or vice versa), going from an FHA loan to a conventional loan, or consolidating multiple loans into one. And in our example, to reduce the term as well (if desired).

Lately, a large number of homeowners have been going the rate and term refi route to take advantage of the unprecedented record low mortgage rates available. They ve been able to refinance into shorter-term loans like the 15-year fixed mortgage without seeing much of a monthly payment increase thanks to the sizable rate improvement.

Obviously, it has to make sense to the borrower to execute this type of transaction, as you won’t be getting any cash in your pocket (directly) for doing it, but you will pay closing costs and other fees that must be considered.

So be sure to find your break-even point before deciding to refinance your current mortgage rate. This is essentially when the refinancing costs are recouped via the lower monthly mortgage payment.

If you don t plan on staying in the home/mortgage for the long-haul, you could be throwing away money, even if the interest rate is significantly lower.

Original mortgage: $300,000 loan, 30-year fixed @6.25%

New mortgage: $350,000 loan, 30-year fixed @4.75%

Now let s discuss a cash-out refinance, which involves exchanging your existing loan for a larger mortgage in order to get cold hard cash.

This type of refinancing allows homeowners to tap into their home equity, which is the value of the property less any existing mortgages or liens.

Cash out refinancing puts money in the pockets of homeowners, but has its drawbacks because you’re left with a larger outstanding balance to pay back as a result (and there are also the closing costs, unless it s a no cost refi).

With a cash-out refinance, you wind up with cash, but also a higher monthly mortgage payment in most cases. In our example, the monthly payment actually goes down thanks to the substantial rate drop, and the homeowner gets $50,000 to do with as they please.

While that may sound great, many homeowners who serially refinanced over the past decade have found themselves underwater, or owing more on their mortgage than the home is currently worth, despite buying properties on the cheap years ago.

All that said, only pull cash out when absolutely necessary, because it must be paid back at some point. It s not free money.

Refinancing May Not Be Necessary

Despite what the banks and lenders might be chirping about, refinancing isn t always the winning move for everyone. In fact, it could actually cost you money if you don t take the time to crunch the numbers.

Instead of borrowing more than you need, or resetting your mortgage, do the math first to determine the best move for your unique situation.

One alternative to refinancing your existing home loan is to instead take out a second mortgage, often in the form of a home equity line of credit.

This keeps the first mortgage intact if you’re happy with the associated interest rate and loan term, but gives you the power to tap into your home equity (get cash) if and when necessary.

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That means you can be confident you’ll get the right product, whether you’re a first-time buyer just getting on the property ladder, a homeowner looking to remortgage to a more competitive deal, or a landlord searching for the right buy-to-let mortgage.

Click ‘Get Rates’ above to try our mortgage comparision service – it’ll help you find the best-buy mortgages most relevant to you and tell you what your monthly repayments might be.

Our easy-to-understand comparison table lets you choose to view fixed-rate or variable-rate mortgages, on a repayment or interest-only basis.

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Did you know.

  • 28% of UK consumers have never switched their mortgage lender
  • Only 8% have switched their mortgage in the last five years [3]

Arranging a loan for a property is a big step, but it needn’t be a step into the unknown with our comprehensive set of mortgage guides and frequently asked questions.

You’ll find dedicated pages on options for first-time buyers, buy-to-let, low-deposit mortgages, remortgages and self-build mortgages.

There’s also a wealth of information on aspects of loans and house buying, such as how much you can borrow, raising a deposit, different types of deal, fees, legal requirements, surveys, gazumping and stamp duty.

Even when you think you’ve found your dream home and decided which mortgage to apply for, there’s still plenty to consider; our guides can tell you more about subjects like negative equity and what to do if you have trouble making repayments.

Learn about buildings insurance, plus other products you may want to think about, such as life insurance, critical illness cover and mortgage protection insurance.

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    [1] For information only mortgage comparison Gocompare.com introduces customers to Lovemoney.com Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Gocompare.com’s relationship with Lovemoney.com Financial Services Limited is limited to that of a business partnership, no common ownership or control rights exists between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites

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  • Home Loan, Best Home Loan in India, Apply for Home Loan Online, home loan rate.#Home

    Home Loans

    If you can dream it, you can own it! Everything you need to know to avail of a home loan is right here. You can be assured of fair terms, total transparency and flexibility. We believe that when it comes to owning a home, nothing should come in the way.

    Features and Benefits of DHFL Home Loans

    1. Loan Amount: Avail a Home Loan of up to ` 500,00,000 (minimum loan amount ` 1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower
    2. Tenure Term: The tenure of your Home Loan ranges from 1 to 30 years. The term, however does not extend beyond the retirement age or 60 years whichever is earlier (65 years for self-employed individuals)
    3. Purpose: Avail of a home loan for ready built-up or under construction house/flat purchase
    4. Reduce your EMI : With tenure of 30 years, you can reduce the EMI amount on your Home Loan, so that your outgoings every month do not come in the way of your lifestyle and living standards
    5. Interest Rates: The Interest rate applicable is based on the DHFL’s Retail Prime Lending Rate (RPLR) which fluctuates from time to time based on the money market conditions
    6. Processing Fees (Non-Refundable) : This is charged as the fee towards processing your home loan application.

    Salaried individuals (SAL) / Self-Employed Professionals (SEP)

    Self-Employed Non Professionals (SENP)

    *GST as applicable

  • Easy Repayments:You have 2 options for repayment of the loan based on the EMIs payable on your Home Loan:
    1. Through ECS (Electronic Clearing Service) based on standing instructions to your bank
    2. Post Dated Cheques(PDCs) drawn on your Savings/Salary account
  • Home Loan Tax Benefits: Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is ` 2,00,000/- for the interest amount paid in the financial year and up to ` 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.
  • Applicant and Co-Applicant: Home Loans can be applied by an individual. The loan amount can be further enhanced by including an earning co-applicant.
  • Home Loan Eligibility

    You can avail a Home Loan of up to ` 500,00,000 (minimum loan amount ` 1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower. The loan amount can be further enhanced by including an earning co-applicant.

    The actual Home Loan amount is determined taking into various account factors such as:

    • Repayment Capacity
    • Age
    • Educational qualifications
    • Stability and continuity of income
    • Number of dependents
    • Co-applicant’s income
    • Assets
    • Liabilities
    • Saving habits, and more

    Documentation Required For Home Loan

    Click here for the list of documents required.

    3 Ways to Get a Better Deal on a Home Loan, home loan rate.#Home #loan

    How to Get a Better Deal on a Home Loan

    It is often said that for most people, the purchase of their home will be their single greatest expenditure. Purchasing a home can be very exciting and also quite stressful. Many people want to try to get the best deal as possible on their mortgage. Getting a good deal may also mean different things for different people: do you want to pay more upfront in order to reduce the total cost of the mortgage? Do you want to pay less each month? Do you want flexibility? These are things to keep in mind when researching mortgages. In order to get a good deal on a home loan, we advise researching interest rates, cutting costs with your down payment or assistance programs, and improving your credit score.

    Steps Edit

    Method One of Three:

    Researching Interest Rates Edit

    Home loan rate

    Home loan rate

    Home loan rate

    Home loan rate

    Home loan rate

    Home loan rate

    Method Two of Three:

    Cutting Costs with Your Down Payment or Assistance Programs Edit

    Home loan rate

    Home loan rate

    Home loan rate

    Home loan rate