HDFC Home Loan balance transfer: Everything You Should Know

Within a short span of time, HDFC bank has become one of the most reputed banks in the country. It has an extensive network of branches and ATMs all over the country, and its various loan offers are looked into closely by consumers, as well. One of the most important loans that people think about in the country is the one they have to take when they are buying their dream home. It is the means to your long treasured dream, which is why the importance of this loan cannot be overemphasized.

HDFC Home Loan balance transfer gets talked about a lot today because it caters to users' convenience. Given the reputation of the bank, there seems to be a lot of merit to it. Applying for this loan is probably going to be one of the most important decisions of your life. It's a decision that will have a long-term impact on your finances. Hence you can't take it lightly and certainly not without knowing everything that these loans from the bank entail. Only then can you make a sound decision for yourself.

HDFC Home Loan balance transfer: Check your Eligibility at the Onset

Before you go about understanding the features of this loan, you will have to know whether you are eligible for it in the first place. To begin with, these loans can be availed by salaried professionals and self employed individuals alike. They are meant for NRI's and Indian residents who are between 21 to 65 years of age. Your repayment capacity based on the fixed and stable income source will be taken into account. Your CIBIL credit score has to be good to ensure that you are eligible for these loans.

HDFC Home Loan balance transfer: The All-Important Interest Rates

This is probably the most important criterion that people base their decision on. The loan offer from HDFC has a floating interest rate of 10.5% to 11.25%. However, you also need to remember that the RPLR is currently 16.5%. The interest rate charged is not the only factor you should think about when applying for the loan. Remember, this loan involves a processing fee of 0.5% of the loan amount, which is capped at Rs. 10,000. There are no prepayment fees levied, but there is a pre-closure fee in case of fixed offers closed through balance transfer. In that case, 2% of the outstanding amount is applicable.

Other Factors that have to be considered

When you are looking at the merits of this loan, you have to remember the fact that the loan amount can fund 85% of the property value. The loan tenure can be chosen from anywhere between 1 and twenty years. The tenure you opt for will affect your monthly repayment options, which is something you cannot lose sight of. The good news, when applying for a HDFC Home Loan balance transfer, is that there is no guarantor required, as the bank would enforce a security on the home that you buy.

Only when you have done your research about these loans, should you opt for them to realize your long term dream of buying a house.

Article Source: http://EzineArticles.com/8377095

Best Home Loan Balance Transfer Options That Can Save Your Day

Is your EMI eating up all your salary and leaving nothing for you to save? But then, you cannot deny that the loan you took has also made your dream come true of buying a house or a new car. So you cannot help but take a loan as it helps you in many ways. Hence, the best way to strike a balance between the two is to go for Home Loan Balance Transfer. By balance transfer it means you can choose to transfer the outstanding balance of the loan to get better terms and conditions. In fact, the best balance transfer options will help you to move from higher rate of interest to lowest rate on home loan interest so that you do not feel the excessive burden of repayment.

The best way to find some unbeatable interest rates on Home Loan Balance Transfer and cheapest home loan EMIs is by searching for the lenders and bankers. This is not a very easy task though. You will need some experts' advice who will guide you through the entire process. They will also see if you are at all eligible for taking up a balance transfer or not. It is easier said than done because it takes ample amount of time to finally get things rolling.

You also have the option to refinance your current mortgage loan or Home Loan Balance Transfer or consolidate a number of debts into one loan so that you can loosen your financial strain to a great extent. Mortgage refinancing goes a long way to help those with a debt burden get mortgage loan interest rates which is substantially lower. Firms which specializes in mortgages can easily suggests you constructive means through which you can avail the benefits of such add on services. In fact, mortgage specialists can very well help you to switch to a fixed rate and sometimes receive cash out to fund projects or make purchases.

While talking about mortgaging loan or Home Loan Balance Transfer, in case it is a long term investment like purchasing a house, the term of repayment will be longer thus resulting in lower EMIs. On the other hand, availing the services from experts, you can get a much higher value in case you want to trade your mortgage loan for cash. Thus, it is advised that to be on the right side of the profit margin, it is best to get in touch with mortgage specialists.

Article Source: http://EzineArticles.com/7831591

Home Loan Balance Transfer Prepayments - Some Important Points

The high Home Loan Balance Transfer has forced the borrowers to think of prepayments. However, prepayment of home loans shouldn't be just done impulsively. There are a lot of factors to consider before making a decision to prepay a home loan or not. Here are some basic things to consider.

Factors to consider before prepayment

The current financial situation of the borrower: Is there enough money floating around to prepay the home loan?

How much money is needed immediately or in near future: Does the borrower have enough money to meet financial exigencies?

The Home Loan Balance Transfer: Are they likely to rise, remain at the same level or fall?

Are there investment options available which can give better returns (of course with minimal risks) 

than the current home loan rates?

Important points

Always calculate the total amount you have to pay to the bank. This included the home loan interest with the principal. This will give you a clear idea on the amount of money you owe to the bank.

If you are planning to invest the money instead of prepaying, calculate the total earnings by investments over the entire duration of loan amount. Always deduct the tax liabilities so as to reach exact figures. If subtracting your home loan repayment from the gains from investing, provide a surplus amount; it is always better to invest your money.

Prepayment penalties are also to be paid to the bank if you are not able to provide proofs that the money you are using to prepay is from windfall gains or your own. (People generally use Home loan balance transfers and get the money from other banks. In such cases banks will charge prepayment penalties).

Article Source: http://EzineArticles.com/1424995

Home Loan Balance Transfer

Home loan interest rates

How to Get Maximum Benefit from an Offset Home Loan Account

You've most likely heard the term Offset Home Loan Balance Transfer; you may even have one yourself, happy in the knowledge that you're doing something to pay your mortgage off sooner.

It's actually one of the most powerful tools you have, allowing you to save thousands - even hundreds of thousands - of dollars over the life of your mortgage.

But - are you REALLY taking advantage of that Offset Account?

What is an offset Home Loan Balance Transfer?

An offset account is a transaction account that is linked to your home loan. The credit balance of your transaction account is 'offset' daily against the outstanding balance of your loan, thus reducing the interest payable on that loan. Over time, this can really add up to large savings and reduce the time it takes to pay off your loan.

If you put as much money as you can into your transactional account that's linked to your mortgage, you can save interest each day that your money is there. Your mortgage is calculated on the full amount of your remaining debt MINUS any offset funds you have accumulated. In other words, your mortgage will no longer be calculated on your full debt.

Here's an example: say you have a home loan balance of $200,000 and have $10,000 in your offset account. So, you'll only pay interest on $190,000 of your home loan.

In short, an offset account offers you more flexibility. You'll be paying off your mortgage quicker, but still have access to your funds if you need them.

What to look for

There are both full (100%) and partial offset accounts. With 100% offset accounts, interest rates are earned and paid at the same time, while a partial offset account is where the interest earned is only a portion of the rate paid on the Home Loan Balance Transfer.

What you can do

There are a few steps you can take to make sure you get the most out of your account. Have your wages deposited in your transaction account, so the money you earn is immediately helping to reduce the interest you pay on your home loan.

Even though you will most likely spend some of that money over the month it's still of use. Another example - let's say that you get paid on the 15th of every month but your mortgage repayment comes on the 28th. Even though there's only 13 days between them, you'll be saving the difference in interest on the amount in your account for that period of time, which can eventually add up to thousands.
Any savings or lump sum payments you receive should go directly into this account. Again, you'll still have access to the money if you need it, but the longer it stays in the account, the more interest is paid off.

Is an offset account for you?

An offset account is useful if you, like many people, can't pay lump-sum repayments into your loan. You may be saving up for something specific - like renovations, holiday or school funding. You can use that money wisely before you cash it out for the reason you're saving it.

However, it's wise to make sure there's still some money left in the account, as fees can rise once your account sinks past a certain amount. An offset account will really only work if you have a decent amount of savings. If you only have a few thousand dollars on a regular basis, your savings won't be significant.

Article Source: http://EzineArticles.com/8965475

Home Loan

Home Loan Today - Gone Tomorrow

You have finally purchased a home of your own. For so many years it seemed to be like a dream always just a little out of reach. What happens next? You do not need to be shackled to your home loan for 25 or 30 years. Here are some useful tips to help you pay off your mortgage sooner and achieve "true home ownership".

Pay more to get ahead

It is a very simple concept to grasp - the more you pay off your mortgage every month the faster you will pay off your loan. Most people think in terms of making sure they pay just enough to cover their set repayments. By doing this you will keep your mortgage for the full loan term of 25 or 30 years. The key to paying your loan off faster is to make as many 'extra' repayments as you possibly can.

Increase the frequency of your repayments

One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly rather than monthly basis. By splitting your monthly repayment into fortnightly you will effectively be repaying the same annual amount but your outstanding loan balance will reduce faster.

Amazingly enough, this change can cut thousands of dollars and years off your mortgage.

The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly means that you will be effectively making 13 monthly payments every year. And this can make a big difference.

Have you considered a professional package?

Most lenders offer a range of professional packages to clients who are prepared to pay a small monthly fee. These packages offer a reduction to the standard variable interest rate, can come with a cheaper home insurance, fee-free credit cards and a number of other options.

Consolidate and save

If on top of your Home Loan Balance Transfer you also have other outstanding loans such as a personal loan, credit cards, car loans etc. - by consolidating all your other outstanding loans into your mortgage you can generally significantly reduce your overall loan obligations and hence have more funds available to apply to your mortgage.

Many lenders will allow you to re-finance - your other debt under the umbrella of your home loan. This means that instead of paying 15 to 20 per cent on your credit card or personal loan, you can transfer these debts to your home loan and pay it off at a home loan rate.

Utilize your available equity

Home equity is the difference between the current value of your property and the amount you owe the lender. For example, if you have a property worth $500,000 on which you owe $200,000, you are said to have home equity of $300,000. In most cases you should be able to establish a line of credit or a home equity loan to access these funds.

Generally lenders will allow you to borrow up to about 80 per cent of the loan-to-value ratio (LVR) of your available equity. You can use this equity to help to pay off your home loan sooner.

[Source: http://ezinearticles.com/?Home-Loan-Today---Gone-Tomorrow&id=229283]

Home Loan Prepayments - Some Important Points

The high Home Loan Balance Transfer has forced the borrowers to think of prepayments. However, prepayment of home loans shouldn't be just done impulsively. There are a lot of factors to consider before making a decision to prepay a home loan or not. Here are some basic things to consider.

Factors to consider before prepayment

The current financial situation of the borrower: Is there enough money floating around to prepay the home loan?

How much money is needed immediately or in near future: Does the borrower have enough money to meet financial exigencies?

The Home Loan Balance Transfer: Are they likely to rise, remain at the same level or fall?

Are there investment options available which can give better returns (of course with minimal risks) than the current home loan rates?

Important points

Always calculate the total amount you have to pay to the bank. This included the home loan interest with the principal. This will give you a clear idea on the amount of money you owe to the bank.

If you are planning to invest the money instead of prepaying, calculate the total earnings by investments over the entire duration of loan amount. Always deduct the tax liabilities so as to reach exact figures. If subtracting your home loan repayment from the gains from investing, provide a surplus amount; it is always better to invest your money.

Prepayment penalties are also to be paid to the bank if you are not able to provide proofs that the money you are using to prepay is from windfall gains or your own. (People generally use Home loan balance transfers and get the money from other banks. In such cases banks will charge prepayment penalties).

If your home loan tenure has stretched substantially due to the increase in interest rates, consider making part- prepayments if your situation permits to keep the home loan tenure to the same levels.

Article Source: http://blogs.rediff.com/homeloantransfer/2016/08/20/home-loan-prepayments-some-important-points-2/

0% APR Balance Transfer

If you want to learn how to make money in new and interesting ways, one of the best things that you can do is to learn how to make money using a credit card offering a 0% APR balance transfer. What you want to do in order to make this work is to find a 0% APR balance transfer credit card and apply for it. The 0% APR balance transfer part is an introductory offer in 99.9% of all credit cards, so you simply have to find one that offers it, and get approved.

Once approved, you basically have free money - This is because you do not owe any interest for a set period of time, and that is what the 0% APR balance transfer part is all about. The goal that you are aiming for in this instance is to take advantage of the free balance transfer and 0% annual percentage rate or APR to use the money from the credit card to pay off other debts, like high interest credit cards, loans, car loans and home mortgages or home equity loans. By using your credit card money to pare this debt down, you are significantly cutting down your family debt without having to worry about ever increasing annual percentage rates.

Now, the trick here is to completely pay off the 0% APR Home Loan Balance Transfer credit card before the APR rises. There is always a preset introductory time period, and once this has expired, your credit card will suddenly have an APR attached to it, which can easily range from 2-3% to as much as 29% depending on who the issuing company is. By paying off your 0% APR balance transfer credit card before the APR expires, you are eliminating the chance of having to deal with enormous interest rates, which is why you pared down your older debt in the first place.

This is tricky business because it requires excellent money management so that you do not end up owing more debt in the long run. If you are serious about paring down old debts in favor of low interest credit cards and loans, then using 0% APR balance transfer credit cards is an excellent step in the right direction.

[Source: http://ezinearticles.com/?0%-APR-Balance-Transfer&id=1560253]

Beware of Balance Transfers!

How many of us have seen those commercials and advertisements advocating paying off your credit cards faster by switching the balance of your credit card onto a lower interest card? They call it a balance transfer and it makes perfect sense when they advertise these cards, transfer your debt that is being charged 19% interest on one credit card to another credit card at a lower interest rate. It sounds too good to be true doesn't it, remember that old saying about something that sounds too good to be true, it usually is!

In theory this tactic can work, but have you ever know banks or credit card companies to do something simply out of the goodness of their heart? Let's face it, the banks and credit card companies are in business to make a profit, they do everything feasible to keep you in debt for as long as they possibly can. You have to remember these companies have investors to satisfy and if they're making an offer like this there has to be some reason. So how are they making a profit?

The answer is they are counting on the fact that you can't control your credit card spending. In addition, they are hoping that you are like 99% of their other clients and when you get your card in the mail you take the card out and activate it without reading the terms and conditions. So let me explain to you how most of these offers work.

Let's say you sign up to a 2.9% introductory offer for balance transfers, what happens is that you will be charged that rate on the Home Loan Balance Transfer  that you transfer over. On any new charges that you make on your card you will be charged 19% interest, and then the other catch is when you make any payments they are applied to the balance that you transferred while the new purchases accumulate at a high interest rate. This is how they make money, they count on the fact that most people don't know how it works and don't notice that while their original balance at 2.9% is going down, they are more quickly accumulating a higher balance at 19%. By the time most people manage to pay off their balance transfer, they are back up to debt at the exact same amount they started with (if not more), at the same interest rate.

If you read the terms and conditions of your new card they do explain it in there in the finest print they legally can, buried in between 10 pages of other things. However, now that you know how it works it is possible to outsmart the banks and beat them at their own game. Balance transfers can be very useful, if you use them properly. If you are going to transfer a balance over to another card what you should do is hide that new card and never use it, this is the only way that accepting one of these offers will pay off. The other thing you should be cautious of is recharging your credit card, if you are doing a balance transfer the idea is to pay off debt and not get back into debt. It is advisable that you write up a good budget and try not to bring your credit cards with you when you go out, if you learn to live off cash, you can eliminate impulse shopping.

[Source: http://ezinearticles.com/?Beware-of-Balance-Transfers!&id=1901392]

How Recession Affected Balance Transfer Rates

Much has been said about the recent UK recession, with businesses tumbling and individuals feeling the pinch of more stringent spending budgets.

Like many other industries, the recession has had a dramatic effect on the credit card industry, which has racked up billions in losses amid a sharp increase in the number of people who can't pay their bills because of a job loss or other financial hardship. That, in turn, has had a ripple effect even on some credit card customers who have always paid their bills on time.

In order to adapt to the drastically changed economy some credit card issuers have raised interest rates substantially, causing in some cases to double or even triple the total minimum monthly payments. Reports of people receiving letters from their credit card lenders about an increase in interest rates have been well documented in the recent months.

As many customers started to re-examine their day-to-day finances, with debt consolidation being one of the options, switching current balances to other issuers offering 0% balance transfer cards seemed like a most sensible solution. However, due to recently introduced new government legislation aiming at protecting the credit card holders, the outcome may actually cause balance transfer credit cards to lose their appeal.

The reasoning is the following: while companies will have to adhere to the new rules protecting the customer they will also look for ways to recoup lost income. For instance, some companies have already cut the length of their balance transfer offer from 16 months to 14 months or shorter, with many others to possibly follow. The future increase in fees and interests also seem inevitable.

Customers should shop around for the best available deal and check if benefits gained from a lower interest far outweigh initial set up costs. Things to look out for are: transfer fee (usually around 3% of the Home Loan Balance Transfer), a typical 16.9% APR for ongoing purchases and even more on cash advances.

Are there any other downsides to balance transfer credit cards? Although it's highly advisable to consider some other alternatives like debt consolidation or personal loan, credit cards balance transfer still remains the best option to curb your debt. It's not ideal but very often can do the trick. The only thing to remember is that 0% rate lasts for a limited period of time and the balances should be paid off quickly.

This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

[Source: http://ezinearticles.com/?How-Recession-Affected-Balance-Transfer-Rates&id=4412082]

What is Seller Home Loan Balance Transfer, how to do it?

 Customer has stuck with his home loan process when he came to know that the seller is having a home loan on the property and he is not having the funds to pre close it. As Mr. Naveen many customers don’t know how to resolve this situation and find themselves in a dead end, but banks do have a product for those who buy properties from owners with home loan already on the property and the product is termed as “vendor liability” or “seller home loan balance transfer”

The process is same as like a normal home loan where the applicants submits the personal, income and property documents along with additional documents like vendor loan account statement, outstanding letter and List of documents deposited in the bank. The process will be done by verifying the personal and income details of the applicants. The panel advocates verify the legality of the property by scrutinizing the documents and by verifying the details in sub registrar offices.

Once all the verification are positive banks start the process of disbursing the loan by collecting checks and signatures on home loan agreement. Banks first disburse the outstanding loan amount of the previous bank in which the seller is having a home loan. Banks gives the owner the complete responsibility to bring the original documents back and register the property to the purchaser. Once the property is registered in the name of the purchaser the remaining loan amount will be disbursed to the seller.

The process of Seller home loan balance transfer is same as like a normal home loan balance transfer with one small difference i.e the process gets completed in 15 days where in normal home loan BT gets completed in week days of time. Banks offer same home loan interest rates for seller balance transfer cases as of a normal home loan and these home loans are also covered for Income Tax benefit Under Section 80(c) of Income Tax Act.

[Source: http://myloandetails.blogspot.in/2014/09/what-is-seller-home-loan-balance.html]

Home Loan Prepayments - Some Important Points

The high home loan interest rates have forced the borrowers to think of prepayments. However, prepayment of home loans shouldn't be just done impulsively. There are a lot of factors to consider before making a decision to prepay a home loan or not. Here are some basic things to consider.

Factors to consider before prepayment

The current financial situation of the borrower: Is there enough money floating around to prepay the home loan?

How much money is needed immediately or in near future: Does the borrower have enough money to meet financial exigencies?

The home loan interest rates: Are they likely to rise, remain at the same level or fall?

Are there investment options available which can give better returns (of course with minimal risks) than the current home loan rates?

Important points

Always calculate the total amount you have to pay to the bank. This included the home loan interest with the principal. This will give you a clear idea on the amount of money you owe to the bank.

If you are planning to invest the money instead of prepaying, calculate the total earnings by investments over the entire duration of loan amount. Always deduct the tax liabilities so as to reach exact figures. If subtracting your Home Loan Balance Transfer

from the gains from investing, provide a surplus amount; it is always better to invest your money.

Prepayment penalties are also to be paid to the bank if you are not able to provide proofs that the money you are using to prepay is from windfall gains or your own. (People generally use Home loan balance transfers and get the money from other banks. In such cases banks will charge prepayment penalties).

If your home loan tenure has stretched substantially due to the increase in interest rates, consider making part- prepayments if your situation permits to keep the home loan tenure to the same levels.

[Source: http://ezinearticles.com/?Home-Loan-Prepayments---Some-Important-Points&id=1424995]

How to Transfer My Home Loan?

Due to a high disparity between interest rates for existing and new customers, several home loan customers are unhappy with the high rates they are being forced to pay. But when banks start discriminating between you and its new customers, it’s time for you to transfer your home loan to a lower interest rate and save money!

Step 1: Cost Benefit Analysis

Analyze your situation, after which you will be able to decide the viability of transferring your home loan. Here are a few broad guidelines that will help you:

 If your home loan is on a fixed interest rate, then you will have to pay a pre-payment penalty to transfer your loan. In this situation it is not advisable to transfer your home loan.

But if you have a high floating interest rate, then transferring your loan to a lower interest rate will be beneficial.

If you have a home loan with long repayment tenure, then transferring will benefit you, as a longer time-period implies higher benefit.

Step 2: Get NOC from Bank

NOC HOW TO TRANSFER Next step is to get an NOC (no objection certificate) from your bank along with:

Foreclosure letter

Your payment history and

List of your documents that the bank has

This process may take 1 – 3 weeks, varying from bank to bank.

Step 4: Credit Approval

Loan approval

The bank will now evaluate your application and decide your eligibility status. It may ask you a few more questions as well.

This is a time taking process as different banks have varying requirements of documents. This process may take 3-4 weeks, varying from case to case.

The bank will carry out extensive background checks on you before they give you a credit approval.

Step 5: Documentation with Chosen Bank

Document verification IN the final stage, you will need to complete the documentation process with the chosen bank. Both, your old and new bank will have a specific requirement of set of documents to complete the switching process.

A catch 22 situation arises in case of Home Loan Transfer to the new bank as the old bank will release your documents only if they get the cheque for the balance principal amount and the new bank will release the cheque only after all the documents are submitted to them.

To solve this, a meeting is held between representatives the two banks. A cheque of the balance principal amount is handed over to the old bank, following the hand-over of your loan papers to the new bank. This ends the transfer process of your home loan.

[Source: http://www.switchme.in/blog/2013/12/how-to-transfer-home-loan-switch-banks/]