vfmloans.com » 2007

Search

Latest News

Blogroll

Theme by Seobilgi Sponsored Lazerli Epilasyon www.lazerepilasyon.de and Abant Kapadokya pansiyon - Pamukkale pansiyon - şile ağva - ağva rehberi - ağva otel - lazer epilasyon - saç modelleri - antivirüs programı - paris hotels - gitar www.gitaral.com

Countrywide Home Loans Shares Tips for Choosing a Mortgage

Whether buying a home or refinancing an existing mortgage, it is important that home buyers and homeowners determine which type of home loan best fits their household’s financial situation. To help simplify the decision-making, Countrywide is sharing 10 tips for choosing a mortgage loan. These helpful insights are just a few of the many valuable ways consumers may arm themselves with the knowledge needed to help achieve and maintain home ownership. “When it comes to choosing a home loan there are some basic principles everyone should consider. Two of the basics are, first, stay within your financial means, and second, never commit to anything without being 100% sure that it is in your best interests,” says John P. McMurray, chief risk officer for Countrywide Financial Corporation (NYSE:CFC), a diversified financial services provider and member of the S&P 500. “There are a number of points to consider when making a decision about taking out a mortgage loan.”

1. Low Payment Now = Higher Payment Later. A lower payment now will almost always mean a higher mortgage payment later. Interest-only loans, “hybrid adjustable rate mortgages” (ARMs) and “option ARMs” are a few examples where the initial payment is typically lower and later payments are higher. It may make sense to have a home loan with a lower initial payment, but it’s important to understand that a “really low” payment now most likely means a high payment later. If you want predictability in your mortgage payments without the risk of your home loan payment increasing, a fixed rate mortgage loan may be the right option.

2. Know Your Prospects. In order to properly evaluate various mortgage loan alternatives, you need to assess your own future prospects. Is your future income likely to be higher or lower? If you opt for a mortgage loan with an adjustable rate, you should have a solid expectation that your future income will increase enough to accommodate the higher payment if the interest rate increases. If you are not sure about your future income, a fixed rate mortgage that provides predictability in your monthly payments may be a better fit.

3. Know Your Time Frame. Time frame is another important consideration. Do you expect to move in the near future or will you stay in this house for a long time? If you plan to move soon, will you keep the house or sell it? Your time frame can, and probably should, influence several decisions you’ll need to make about your home loan. Examples include the type of home loan (e.g. ARM v. Fixed Rate; fully amortizing v. interest only), home loan features (e.g. should you accept a prepayment penalty in exchange for a lower loan price) and rate/points combination (the shorter the period you plan to remain in your home, the fewer points you should pay).

Posted in loan rate, home equity loan comparison, home equity loan bankruptcy, debt finance home loan mortgage, home equity loan rate, loan calculator, home loan, loan, mortgage loan, home equity loan | Comments(0) July 2007

Cover for personal/auto loans — SBI Life ties up with finance cos

SBI Life Insurance Company has tied up with GE Countrywide and Maruti Countrywide to provide life insurance cover against personal loans, two-wheeler loans and auto loans.SBI Life already has creditor protection schemes in place for outstanding payments against credit cards (for SBI card holders) and housing loans (SBI housing loans and Sundaram Home Finance customers). Under the scheme christened `Credit Shield’, SBI Life will provide life insurance protection to customers of GE Countrywide against their personal loans of up to Rs one lakh. In the event of death or total permanent disability of the customer, SBI Life will pay GE Countrywide the outstanding amount of loan that the customer has availed of (subject to a maximum of Rs one lakh). In case of two-wheeler and auto loans, the company will provide life insurance cover to customers of GE Countrywide subject to a maximum of Rs 60,000 in case of two wheelers and Rs 7.5 lakh in case of auto loans. The tie-up with Maruti Countrywide provides for financial protection for customers of Maruti Countrywide on their auto loans subject to a maximum of Rs 7.5 lakh. Company officials said, that in all cases, SBI Life would pay GE Countrywide and Maruti Countrywide, the outstanding amount of loan that the customer had availed of (Subject to the maximum amount specified) in case of death or total permanent disability of the loan-holder. The premium for the `Credit Shield’ cover has been pegged at `affordable rates’ and the customer does not have to provide for premium separately, according to Mr S. Muralidharan, Chief Marketing Officer, SBI Life. Once the customer opts for `Credit Shield’, his EMIs will automatically include the insurance charges for each month and the finance company will automatically debit the premiums on the post-dated cheques for the EMI. SBI Life was exploring more such tie-ups in the future and was currently in talks with another housing loan agency for a similar endeavour, Mr Krishnamurthy said. The company is also in discussions with the Government to get into the Employees Deposit Life Insurance business (EDLI), he said. SBI Life has through its policies, covered 4.3 lakh people so far, with a sum assured of Rs 3,600 crore and earned a premium income of Rs 70 crore.

Posted in loan rate, car loan calculator, new car loan, bank loan, auto loan calculator, bad credit car loan, loan, personal loan, loan calculator, auto loan | Comments(0) July 2007

SBI Life’s Creditor Protection Policies

SBI Life Insurance has extended its range of creditor protection policies to include life insurance cover against personal loans, two wheeler loans and auto loans at very affordable premiums. The company has announced tie-ups with GE Countrywide to provide life insurance cover against personal loans, two-wheeler loans and auto loans, and with Maruti Countrywide to provide life insurance cover against auto loans. SBI Life has already introduced its creditor protection schemes that provide financial protection against outstanding payments against credit cards (for SBI Card holders) and housing loans (SBI Housing Loans and Sundaram Home Finance customers) SBI Life, in partnership with GE Countrywide and Maruti Countrywide, is the first life insurance company in India to provide life insurance cover against personal loans, two wheeler loans and auto loans. Under the scheme christened ‘Credit Shield’, SBI Life will provide life insurance protection to customers of GE Countrywide against their personal loans subject to a maximum of Rs one lakh. In the event of death or total permanent disability of the customer, SBI Life will pay GE Countrywide the outstanding amount of loan that the customer has availed of (subject to a maximum of Rs one lakh). In case of two wheeler and auto loans, the company will provide life insurance cover to customers of GE Countrywide subject to a maximum of Rs 60,000 in case of two-wheelers and Rs 7.5 lakh in case of auto loans. The tie-up with Maruti Countrywide provides for financial protection for customers of Maruti Countrywide on their auto loans subject to a maximum of Rs 7.5 lakh. Credit Shield cover is open to all customers of GE Countrywide and Maruti Countrywide in the age group of 18 to 59 years. The cover is optional and the customer is free to choose whether or not he wants to go in for the policy. The premium for the cover, says a SBI Life source, has been pegged at a very affordable rate and the customer does not have to provide for premium separately. Once the customer opts for Credit Shield, his EMIs will automatically include the insurance charges for each month and the finance company will automatically debit the premiums on the post-dated cheques for the EMI. The documentation procedure is very simple, as is the claims settlement process. There is no need for a separate medical certificate. The customer only has to sign a good health declaration on the GE Countrywide application form. The cover starts from the day the loan is disbursed.

Posted in new car loan, bank loan, loan rate, loan calculator, loan, personal loan, auto loan | Comments(0) July 2007

Initiate your business venture with New Business loans

Starting a business venture is a tedious task and especially when you are running short of finances. Once you are planning to take an initiative in establishing a business venture, you need to go through a proper planning for this purpose.
A thorough research is required, rather than taking a loan from any financial institution. Though, you can take a loan from high street banks or building societies. But, when you are not aware of the loan market, it is advisable to approach the private lenders. The growing competition among the lenders may help you to get a good loan deal.
‘New business loans’ are designed in such a way that it can be used for your new business purposes like buying premises for your office, purchasing plants and machinery etc.
You can seek secured new business loans by putting your property as collateral .The lenders may offer you a loan at lower APR (Annual percentage rate) with a longer repayment term. So, ultimately the borrowers would be benefited by this loan type, as they will be having a lower monthly outflow. If you are a homeowner in the UK, then you have an option to take a loan amount, against the equity present in your home.
Apart from this, if you don’t want to put your property as collateral, then unsecured new business loans would be a wise move. The advantage with an unsecured loan option is that you can get your loan amount within a short span of time. This is because the valuation of the assets is not done in this case. Hence, a significant amount of time is saved which helps in getting loans in an easy manner.
Little bit of research, may help you in getting a right loan deal. You can just apply for the loans online on any of the loan sites and you will be offered loan quotes from different lenders of the UK.

Posted in business loan, online loan, loan | Comments(0) July 2007

SBI to raise personal loan rates by .75%

The State Bank of India (SBI) said it will shortly raise car and other personal loan rates, excluding housing and education, by an average of 0.75%. We have announced hike in benchmark prime lending rates by 75 basis points…we will be raising rates of all (personal) loans, except for housing and education, by 75 basis points on an average,” SBI MD Yogesh Aggarwal said. He, however, clarified that some loan rates may rise by 1% and some by 0.50%, but the average would be 0.75%. “The rate hike would be announced in a few days,” he added. Aggarwal’s statement came amid reports that ICICI and Kotak are increasing auto interest rates by 0.75-1% this weekend. Pursuant to increase in cash reserve ratio by RBI. SBI had announced 0.75% in its benchmark prime lending rate to 12.25% last month. However, all the existing housing and educational loans ans new educational loans up to Rs 4 lakh are excluded from the hike. Also, all existing and future agriculture production loans less than Rs 3 lakh are excluded from its impactSBI had also raised rates on some of deposit schemes. Aggarwal said hardening rate cycle has peaked in the economy and the rates are likely to stabilise at these levels.

Posted in bank loan, loan rate, loan calculator, personal loan, loan | Comments(0) July 2007

Banks offer loans for marriages

Marriages may be made in heaven but, as any parent would tell you, they cost the earth. It is not uncommon to see parents running helterskelter to meet wedding expenses. But some respite is in sight with banks including marriage loans in their lending portfolio. As most personal loans are available mainly to the salaried class at high interest rates, banks like the State Bank of Hyderabad (SBH) and Bank of Baroda (BoB) are wooing customers through schemes dealing exclusively with marriages. Any income-earning person can apply for loans under these schemes. SBH’s Kanya Vivah Suvidha Scheme (KVSS) offers loans of Rs 50,000 to Rs 3 lakh at an interest rate of 12.75 per cent per annum. Parents with grown-up daughters and women relatives are eligible for KVSS, as also women who have a repayment capacity. Since its launch in January 2003, SBH has disbursed loans worth Rs 3.91 crore to 415 borrowers through its 1,000 or so branches countrywide. “With the onset of the marriage season, coupled with a 0.25 per cent rate cut, the bank plans to disburse loans worth Rs 12 crore by March-end,” said SBH chief manager D S R K Nehru. KVSS charges an interest rate that is 0.5 per cent less than the one on personal loans, he told The Times of India. SBH has also launched another marriage-linked scheme called Vanitha Gold under which salaried women and housewives can apply for advances from Rs 20,000 to Rs 1 lakh for buying jewellery.

Posted in bank loan, loan rate, loan calculator, loan | Comments(0) July 2007

PSU banks freeze home loan rates

Currently, 75% of the home loan market is lies with private sector banks and housing finance institutions which may not necessarily comply. The freeze on interest rates by public sector banks could, however, put pressure on them and force them to fall in line. Over the past three years, interest rates have gone up on five occasions. From 7% in 2004, the rates had hit 10% by January 2007. Borrowers are now paying nearly 25% higher equated monthly instalments (EMIs). Last week, the Reserve Bank of India (RBI), in its annual policy review, hiked the repo rate (the rate at which banks borrow funds from RBI) to 7.50%. This hike is expected to put pressure on banks to revise the rate at which they lend. Chidambaram’s remarks came in the backdrop of the concerns this hike raises.
While RBI has expressed concern on credit flow to real estate, Chidambaram said home loan had not been clubbed with the sensitive sectors where the central bank wants credit growth to be moderated. He pointed out that the provisioning requirement — resulting in setting aside of more funds for the sensitive loans — had not been changed.
In other segments like personal loans, credit card, commercial real estate and loans for buying shares and borrowing from non-banking finance companies, the provisioning norms have been increased from 1% to 2%.

Posted in loan rate, home equity loan bankruptcy, bank loan, home equity loan rate, loan calculator, home loan, loan, home equity loan | Comments(0) July 2007

Managing interest rate hikes

Is the rate hike giving you sleepless nights? Are you weary of your loan tenure remaining the same, even after regularly repaying the lender for the past three years? Many borrowers are unhappy with the frequently rising rates. However, experts opine that rates are already high and may not go up in the near future. This sends confusing signals to prospective borrowers like Anand who dream of owning a house. Anand has decided to take a fixed rate loan from a bank at 13 percent interest. The two bedroom independent house costs him around Rs 30 lakhs. If he locks himself for tenure of 180 months or 15 years, his monthly EMI outflow will be Rs 41,988. A fixed loan will give Anand peace of mind and protection against further increase in rates. He can plan his finances well in advance. On the contrary, consider the other alternative. What if the interest rates fall? Say after one year, interest on floating rate loans fall to 10 percent. What are the options before Anand? Should he brood over his decision for locking at such a high rate? Could he not benefit from the fall at all? Switching from a fixed to floating rate loan is fairly simple. A small conversion fee of around 0.5 percent may be charged by the lender. So Anand migrates to a 10 percent floating rate and keeps the tenure at 180 months. His principal outstanding after a period of 12 months hovers at around Rs 29.42 lakhs. This becomes his new principal. So his monthly outflow comes down to Rupees 31,618. If the loan tenure were made 14 years, then the EMI outflow will be around Rs 32,600. The whole conversion process translates into big monthly savings for Anand. Suppose a borrower has taken a floating rate loan. If he feels the rates are too high, he can try the re-pricing option. For a small fee, his interest rates will be brought down on par with that of new borrowers. However, if rates were to go up again across the board than the borrower does not gain much. Finally, if you find a lender who offers lesser rate than your current lender, consider refinancing the loan. However, this comes with lots of fees and penalties. The current lender may charge you a prepayment penalty. Read the home loan agreement. Some banks do not charge you penalty in case you prepay with your own money. And again the new lender may charge some processing fees for refinancing. If the borrower has a good repayment track record, banks will be more than willing to takeover the loan from your existing lender. If you have a good offer from another lender, try convincing your existing lender about the offer at reduced interest rate. If the switching costs are more than 1.5 percent of principal outstanding, work out the arithmetic and see if you really save so much money.

Posted in loan rate, loan calculator, loan | Comments(0) July 2007

Republic Bank ending payday loan business

At the urging of the Federal Deposit Insurance Corp., Republic Bank & Trust Co. has decided to end its payday loan business. In a Feb. 17 letter to the bank, the FDIC “cited inherent risks associated with payday lending activities and asked the bank to consider ending this line of business,” according to a filing with the U.S. Securities and Exchange Commission. Consequently, the Louisville-based bank is getting out of its marketing and servicing agreement with Ace Cash Express Inc., which offers Republic’s payday loans in Texas, Pennsylvania and Arkansas. Republic currently has $2.4 million in loans outstanding through Ace, the filing said.Republic stopped offering payday loans in Texas and it plans to end that business in Arkansas and Pennsylvania on June 30. During the fourth quarter , Republic recorded net income of about $299,000 through its partnership with Ace. Republic Bank & Trust Company of Indiana also received a letter from the FDIC and has opted to terminate its Internet payday loan program, which began operating i and has remained in a developmental stage, the filing said. During the fourth quarter o, the bank recorded a net loss of about $517,000 from the program. Republic Bank & Trust Co., with 32 banking centers in Kentucky, and Republic Bank & Trust Company of Indiana, with two banking centers in Indiana, are subsidiaries of Louisville-based Republic Bancorp Inc. (NASDAQ: RBCAA).

Posted in payday cash loan, bank loan, loan rate, personal loan, loan, payday loan | Comments(0) July 2007

Banks do not bank on home loans

Organising a loan for your dream home just got a tad difficult. Bankers who were earlier falling over each other to dole out home loans have suddenly become choosy. Banks like SBI, ICICI Bank, UTI Bank, IDBI Bank and leading mortgage firm HDFC are now apparently making a conscious attempt to curb their aggression in the home loan market. So what can you expect as a borrower? For one, be prepared for a haircut on your loan. A customer who approached a private sector bank for a home loan of Rs 10 lakh for a tenure of 15 years found, to his shock, that the loan disbursement was Rs 5 lakh. What’s more, even though the application was made in January, the sanction didn’t come through before March-end. Some banks have also stopped sanctioning fixed rate loans for tenures below 10 years, as they expect interest rates to go up. “Banks that used to offer 100% finance are today financing only up to 85% of the value of the property,” said an IDBI Bank executive. Most bankers aren’t willing to confirm any slowdown in their home loan portfolio. What’s the real reason behind the slowdown? “The huge pick-up in corporate credit and a slowdown in deposit mobilisation have affected banks’ lending capabilities,” said a senior executive from UTI Bank. “The deposit growth for the sector as a whole is around 17%, while credit is growing at almost 28%, forcing banks to become selective,” said the official

Posted in fixed rate home equity loan, home equity loan comparison, home equity loan bankruptcy, bank loan, loan rate, home equity loan rate, home loan, loan, loan calculator, home equity loan | Comments(0) July 2007

« Previous Entries

Search

Categories

Latest News

Blogroll