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Home Loan

IDBI Bank home loan offers flexible loan repayment options and lower EMIs at attractive interest rates. Calculate your eligibility now!<br>For More Details Visit: http://www.idbi.com/home-loan.asp

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Home Loan

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  1. Home Loans

  2. Home loans allow you to borrow against the value of your home. These loans appeal to borrowers who find that they can borrow relatively large amounts of money, and they’re easier to qualify for than other types of loans (because they are secured by your house). If your home is worth more than you owe on it, a home equity loan can provide funds for anything you want (you don’t just have to use it on home-related expenses, for example). A home equity loan is a type of second mortgage. Your “first” mortgage is the one you used to purchase your home, but you can add other loans to borrow against the property if you have built up enough equity.

  3. Benefits of Home Loans Home equity loans are attractive to both borrowers and lenders. Here are a few of the key benefits for borrowers: • Home loans typically have a lower interest rate (or APR) • They are easier to qualify for if you have bad credit (sometimes) • Interest costs on a home equity loan may be tax deductible

  4. What Is APR? Borrowers can qualify for relatively large loans with this type of loan Most of those benefits (except for the tax deduction) are available because home equity loans are generally safe loans for banks to make: the loan is secured by your house as collateral. If you fail to repay, the bank can take your property, sell it, and recover any unpaid funds. What's more, borrowers tend to prioritize these loans over other loans because they don’t want to lose their homes (faced with the choice of missing a mortgage payment or a credit card payment, you might skip the card payment).

  5. Of course, banks have to be careful not to lend too much (as they did in the housing crisis) or they risk major losses. To protect themselves, lenders try to make sure that you don’t borrow any more than 85% or so of your home’s value – taking into account your original purchase mortgage as well as any home equity loan you’re applying for. The percentage of your home's value available is called the loan to value ratio, and may vary from bank to bank.

  6. Logistics When you get a home loan, you get a lump-sum of cash, and you repay the loan over time with fixed monthly payments. Your interest rate is set up-front, and each payment reduces your loan balance and covers some of your interest costs (it is an amortizing loan). If you don’t need all of the money at once, you can also consider a home equity line of credit (HELOC). That option provides a pool of money that you can draw from if and when you need it, and you only pay interest on any money that you’ve actually borrowed. However, be aware that banks can close or cancel a HELOC before you’ve had a chance to use the money, and the interest rate on a HELOC generally changes over time.

  7. Common Home Equity Loan Uses You can use a home equity loan for anything you want. However, they usually get used for some of life’s larger expenses because homes tend to have a lot of value to borrow against. For example, you find that a lot of borrowers want to: • Remodel, renovate, or otherwise improve the house and property • Pay for a family member’s college education • Fund the purchase of a second home • Consolidate high-interest debts • Pitfalls of Home Equity Loans

  8. Source:http://banking.about.com/od/loans/p/lineofcredit.htm?utm_term=home%20loan&utm_content=p1-main-3-title&utm_medium=sem&utm_source=google_s&utm_campaign=adid-8163dd2d-648f-4002-8954-0cc5b561ce57-0-ab_gse_ocode-5946&ad=semD&an=google_s&am=exact&q=home%20loan&o=5946&qsrc=999&l=sem&askid=8163dd2d-648f-4002-8954-0cc5b561ce57-0-ab_gseSource:http://banking.about.com/od/loans/p/lineofcredit.htm?utm_term=home%20loan&utm_content=p1-main-3-title&utm_medium=sem&utm_source=google_s&utm_campaign=adid-8163dd2d-648f-4002-8954-0cc5b561ce57-0-ab_gse_ocode-5946&ad=semD&an=google_s&am=exact&q=home%20loan&o=5946&qsrc=999&l=sem&askid=8163dd2d-648f-4002-8954-0cc5b561ce57-0-ab_gse Thank You! http://www.facebook.com/idbibank https://plus.google.com/+IDBIBank https://in.linkedin.com/company/idbi-bank http://www.twitter.com/idbi_bank http://www.youtube.com/idbibank

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