Eloan Secure Mortgages asked:

My income is not large, but have excellent credit and will pay 20% down. I’ve been “pre-approved” but am looking for the best deal, and was wondering if anyone had an amazing referral to somplace I’ve missed. I’ve looked into Ditech, eloan, Wells Fargo, and a local broker, and will contact ING Direct too. Any other suggestions of banks, online lenders, etc. would be marvelous, though preferably not individual brokers at this time.

I’m just trying to get the best deal with the few pennies I earn, so I’ll be financially happy when I move into my new home.

Thanks!

CA mobile home debt consolidation asked:

I’m getting a divorce and eventually moving out, and I don’t really want to throw money away on rent. I’m thinking of buying a mobile home (because they’re inexpensive) but was wondering if I can get a full 30-year mortgage on one, so I can keep my payments as low as possible? (And no mobile home jokes, ok??)

As it is often said that “The friend in need is friend indeed”, this proverb is best suited for loans. Really, the loans are your best friends when you are struggling with bad financial conditions.

There is no need to worry to borrowers because today there are several banks available in the market that come to help you and provide different types of loans. There are several types of loans, such as home loans, education loans, business loans, debt consolidation loans, SBI loans, car loans and loans for NRIs that make your different dreams true. In this following article we will discuss about the NRI loans.

Non-Resident Indians

Any Non Residential Indian who is struggling with a bad financial conditions, a special loan is waiting for him. So, no need to worry if you are an NRI and want to complete your different financial requirements. If you have the dream to get higher education which is very costly and you have lack of money, you can get loan easily.

Your dream of purchasing land to construct home or you want to purchase a apartment to live, home loans would help you. Along with this, your dream to establish your own business can be fulfilled with the help of business loans. The NRI loans are quite easy to avail, you just need to present some necessary documents such as your valid Indian passport. A very important condition is that an NRI who wants to get these loans should be a graduate and the age of the borrower should be at least 21 years.

The rule of the reserve Bank of India says that to avail the loan only those NRIs are eligible which have their own property in India. There are several banks in India that offer loans for NRIs, some of the reputed names are SBI, citi Finance, ICICI bank, HDFC home and housing loan interest rates online and so on.

Bank Interest Rates

These banks provide various loans easily and within a short span of time. The banks provide the loans at different rate of interest, because the rate depends on the capacity of the borrower to repay the loan. One can repay the loan in several EMIs which is more easy than pay the entire amount in one time.

The information about these NRI low rate loans can be collected online. These loans are available under both secured and unsecured categories. If you want to get the NRI loans, at first you need to pay the processing fee. This fee has to pay at the time when you will give the application for the loan and this processing fee is non-refundable.

After that you will be called for a face to face meeting and all your documents will be verify by the authorised person and then the loan will be provided to you. If you do not pay the loan within the decided time you will have to pay the late payment charges.

To summarise, all the conditions and related terms of these NRI low rate loans are easy and such loans are easily available for eligible NRIs.

Reader Question

SBI borrower asked:

Who can sign Power of Attorney in the US for my son who wants to buy a flat with SBI loan and give PoA to me?

Pl. mention the authorities who can sign the said Power of Attorney in the US (whereby I can apply for SBI loan and also represent in the execution of sale deed of Flat in India on behalf my son, who cant be present in India during that time).

Tips on Investing Properties In Malaysia

If you are foreigner and plan to invest in a property in Malaysia, here are some tips that you will find useful.

Financing Your Property With Malaysian Banks Like Ambank

As a foreigner, you are allowed to borrow up to 70%. In most case, the banks are more than willing to finance your purchase of 50% of your property price.  Be sure to check out the latest housing loan interest rates at Ambank to assess your borrowing costs.

Restriction in Disposing of Your Property

You are not allowed to sell your property less than 3 years from the date of your purchase.

Number of Units You Can Own In Malaysia

As a foreigner, you are only allowed to own not more than 2 properties. Should you intend to purchase a third property, you will have to appeal to the Foreign Investment Committee and provide a valid reason for the third purchase. There is no guarantee that your appeal will be granted.

Remitting Money into Malaysia

If you intend to purchase or have purchased a property in Malaysia, you are allowed to open a bank account to remit your funds from your domicile country for purpose of paying for the property.

Taxation of Your Property

Should you intend to dispose your property within the 5 years after the date of your acquisition, you will be taxed 30% of the gains only. If you dispose your property after the 6th year of your purchase, you will be taxed on 5%of your gains.

Minimum Purchase Price Allowed To Purchase

As a foreigner, you are allowed to purchase a property costing more than Ringgit 150,000. In some states such as Johor, Melaka and Penang, the purchase price of the property must be more than Ringgit 250,000.

Types of Properties You Are Allowed to Purchase

You are allowed to purchase residential apartments, condominiums, service apartments and landed properties such as terrace, semi-detached and bungalows.

Fees Involved in Purchasing a Property

You are required to pay legal fees and disbursements for the preparation of the sale and purchase agreement whichis a percentage of the value of the property. Should you plan to take up financing from a bank, you will have to pay legal fees and disbursements for the preparation of the loan documents.

If you are seriously planning to invest in properties in Malaysia, check out this unique e-book by Malaysian property expert Juanita Chin on “How to Own Properties in Malaysia without Being Ripped Off” at

http://www.MalaysiaPropertyGuide.com/.

Reader Question

Datuk Seri Man asked:

Are those foreign Bank stable like OCBC (for OCBC housing loans), Standard Charted, Citibank, HSBC or local bank like?  I’m talking about the likes of these: CIMB, P.Bank, Maybank, AmBank, RHB, EON bank, etc

By Guest Writer Robert Grazian:

If you are considering taking out a loan then you will understand that you are stepping into a minefield when it comes to calculations. It is easy to work out some of the simple math to see how much you can afford when it comes to repayments and interest, but it also very easy to get confused and forget some of the contributing factors which could make a huge difference to your repayments. Loan calculators have the benefit of being able to do instant calculations which will mean that you can shop around and confidently find the best deals available for your particular circumstances.

Repayments

There is no point in trying to work out what your repayments are going to be without taking the home loan interest rates today into account. If you are borrowing, for example, $5,000 over five years, then you could just assume that you will be repaying $1,000 each year. If only it were that easy. On top of the money that you borrow you will also have to repay quite a hefty sum of interest by way of saying “thank you” to the loan company. Loan calculators exist so that you can easily work out just what your repayments are going to be.

Variables

There are many variables when it comes to the rates of interest that are applicable to a particular eloan secure scheme. The basic interest rate as published by the banks will serve as the foundation for determining the interest rate for your loan. Other factors will then add to that figure. The amount that you borrow will be taken into consideration as will the length of time over which you plan to make your repayments.

Interest Rates

Often it is the case that the longer you take to repay the loan, the higher the interest rate will be. This is because you will be a greater risk to the company who have loaned you the money. The loan company will run various reference checks on you prior to offering you a loan and if you have a low credit score then they may increase the interest rate for your borrowing. Perhaps now you are getting an idea of why loan calculators are a good idea. They mean that you can enter all the information and variable from different companies who make you different offers so that you can see which would be the most suitable.

Loan Companies

As different loan companies will have different priorities when it comes to setting an interest rate for you, loan calculators are invaluable. For example, one company may offer to lend you the money at a high interest rate over a longer period and another at a lower interest rate but want the sum repaid in a shorter space of time. Without a calculator to refer to, you could easily make a decision that you cost you in the long run.

Find a Loan Calculator

It would be very wise to make use of the one of the many loan calculators which are available on the internet. Some loan companies do have their own as part of their website and some of the comparison sites also run a calculator. If, however, you are looking at a site that does not have one readily available, have a look in a search engine and find an independent one. There are plenty around and they really could save you a lot of money.  One good example can be found at HDFC Bank home loan calculator on this website.

J. asked:

I have good credit and stable job, and I just refinanced my current home at 4.65% fixed for 30 yrs and really lowered my payment. I’d like turn this current home into an investment property and then buy another home with zero or 3 percent down, 5 percent down, etc. Is it difficult at this time?

By Guest Writer Leilah Jumat

In the property investment industry, South Africa follows a unique system where every plot is reflected on a diagram and ownership of the plot is recorded in the relevant Deeds Registry, available for public viewing. South Africa is known to have one of the best deeds registration systems in the world with an exceptional degree of accuracy and security because of the influx in property investing in the country. Property can be owned individually, jointly or by a corporation or company registered within or outside of South Africa.

Why Is The Property Market Is Going Down?

With the amended National Credit Act (NCA) that came into force on the 1st June 2007, the property industry evolved into a wall of stability that is completely necessary in a country like South Africa. Despite the scores of speculation and the horror stories you might’ve heard about the NCA regarding home loans, the amendments would not have been approved if there were possibilities of failure for South Africa’s citizens. So to set everyone’s mind at ease, the NCA will not impact on the time period needed to grant or reject home loan approvals; though no one can guarantee the impact that the NCA will have on the property market, those stories are all just a classic taste of sensationalism.

Yes, the NCA has definitely altered the way banks and financial institutions operate when considering an approval for a home loan or bond, but the municipality is almost certain that these types of loans will hardly be affected by the amended NCA. The NCA is to put an end to “reckless money lending” thus protecting individuals from getting in way over their heads by borrowing money from the bank which they cannot afford to repay. This way, individuals will be guarded against hefty monthly bond repayments; the NCA will see that they are comfortable paying a mortgage loan that their paycheque can be accustomed to while also preventing them from debt-drowning.

The Nelson Mandela Bay Valuation

A recent case study depicts how the NCA has already impacted on property valuation. The first phase of the R65 million Nelson Mandela Bay municipality property valuation process that every property in the city will undergo during the next two years, has already started. Though a definite number has not been determined as yet, the valuation process will result in an increase of rates according to each specific region. Municipal manager Graham Richards has also stated that some properties will be evaluated higher than others, depending on where in South Africa they are located, which in turn will reflect on their rates.

“The purpose of this is to determine a fair valuation of all properties, not only in the Nelson Mandela Bay municipality, but also nationally, and it is therefore important that property owners allow data collectors, carrying the correct accreditation, to conduct a proper and accurate data collection of their property,” said Richards.

Loan Qualification Criteria

The most important factor that has changed is the loan qualification level. Before the amended NCA was introduced, financial institutions would grant a home loan to a potential buyer based only on a third of the buyer’s total income, that’s apart from their other debt like car finance, eloan secure, children’s student loans, clothing accounts etc. Now with the amended NCA in practice, the loan is granted based on the buyer’s disposable portion of income after all debts have been brought into consideration.

Though the rate of property investment in South Africa is clearly decreasing, the method that banks and financial institutions (see international world investment loans for more information) are operating with today seems far more promising than previous methods. Initially, with regards to the real estate industry, the amended credit act will be a hiccup in some of our plans we might’ve had for the future.

It would take some time to readjust to the new rules but once that is overcome South Africans will be able to see that the act is completely necessary and we need to strive for a healthy financial status instead of burdening ourselves with unnecessary debt.  For those who can afford investment property in South Africa, there is hope therefore.

Problems For Young Buyers

However it is true that young couples and newly-weds who wish to invest in property together would have to either save up for a few more years than they initially planned for or lower their expectations as it would be more difficult to get a bond approval, especially if it is their first bond. The municipality states that this will turn younger couples to rent instead of own which in turn will boost the property rental market which is a positive factor.

The new property valuation process will also result in landlords being stricter about how much they will grant as rental income. Initial deposits to secure a rental apartment or house will also increase and residents will have to prove that they can afford the monthly rental payment because of the increase in property valuation.

Debt Crisis?

With the amount of South African citizens that are drowning in debt we should all try to look at the amended National Credit Act with an open mind and not be pessimistic because the three-story mansion in Llandudno is now even less affordable than it was before. The NCA will be a lifelong lesson to South Africans to be smart with their finances. The good news is that despite the drop in property sales now, the property industry is very much positive and is not expecting a noticeable decrease in sales for the next few months. This is merely an interlude.

Reader Question

By Guest Writer Adam Singleton :

The Bank of Ireland has recently introduced a very canny product to the market that’s a credit card and personal loan combined, giving the account holder some very flexible ways to make large purchases without attracting the large interest rates that are normally associated with credit cards.

Any customer that makes a large purchase on their card, and is unable to repay it in within the statement date has the option to transfer the balance to the personal loan part of the product. That currently offers a discounted 6.9% interest rate for 12 months, giving the cardholder a year to pay off their loan before the interest reverts to the higher credit card rate of 14.9 %.

Reward For New Customers

Even better, and as an incentive to new customers, the card offers an introductory zero percent interest loan rate on purchases for the first six months. But the real beauty of this product is the sheer convenience. If you want to make a major purchase that you know you could pay off within a year there is no need to waste time having to compare loans and the rates charged, then request quotes before submitting an application and waiting for the cash to go into your account. You can simply transfer the credit card balance to the personal loan part of the product, freeing up the credit card element of your account to be used in an efficient and cheaper way.

Of course, there is a catch. To make use of the personal loan aspect of the product the minimum amount must be EUR500, and only two purchases can run on the payment plan at any one time. In terms of the transfer amount, a maximum of 80% of the credit limit for that account can be transferred.

Cheaper Than Other Loan Types

That aside, using the repayment facility would still prove cheaper than most of the personal loans on the market. The average personal loan rate in Ireland is between 9.7 per cent and 12.2 per cent and the average overdraft rate is in excess of 15 per cent, meaning that anyone utilising the repayment element of the 2 in 1 account would make a significant saving on the interest paid.

There is no doubt that this product would prove very extremely popular if it was introduced into the UK loans and credit card market, so you can be certain that banks and building societies in the UK will be keenly watching how this product performs.  For more information consult the Bank’s own website.

Reader Question

by Guest Writer Jason Gluckman:

When looking at historical CD rates, it is apparent that some trends have remained constant. Generally, institutions that offer certificate of deposits grant higher rates of interests on their CDs that customers deposit money for the agree-on term than those on the CDs in which customers can withdraw the money on demand.

For instance, during 2004 most of the popular banks in the world had offered 0.4% annual rate of interest on saving account deposits which are payable on demand, 0.8% on a 3-month CD and 2% on a 2-year CD.  When studying historical CD rates, the trend indicates that over the last 30 years the rates of interest were ranging in between 2-16% annually. During 1979, the average rate of interest on CDs was 11.44% worldwide. (See also HDFC Bank housing loan rate.)

This was the rate before considering tax rate and inflation rate. During the same period, those rates were 66% and 13% respectively, which in turn left the net rate of interest of CD as 9.41%.  In 1981, the CD rate was almost 16% and in which year the tax rate and inflation rate were 66% and 9%. All of these factors have kept the net rate of return on CD as 3.5%. During the year 1986, the gross rate of interest was only 6.6%.

However the tax rate and inflation rate were comparatively low which were only 52% and 1.1% respectively. Therefore there would not be more deductions from rate of return on CDs resulting in the net rate as 2.02%.  Whatever the previous rates may be, one can say that billions of dollars have been invested in CDs during the 20th and 21 centuries.  Don’t forget to check out Axis Bank home loan interest rates here.

When deciding on whether to invest in a CD or to go for other sources of investment, Investors need to take their goals and the rate of return into account.

home equity loan rate man asked:

I have a project where I have to find the interest rates of different banks (eg. POSB, OCBC, HSBC).

Can anyone please give a detailed description of the private housing loan packages they have?

Please state the interest rates in your answer, and try not give me websites. Thanks!

What Actions You Can Take?

Elizabeth P asked:

I am trying to purchase a house, and my loan lender is lying and not doing his job to proceed to closing.

I try to call him and no response or phone call back from him. I wrote him a email asking him what is going on, and he pretty much said I call him and his processor to much.

Can I switch loan lenders? Or am I to far into the deal?