When it comes to calculating Equated Monthly Installment or EMI for a home loan package, EMI calculator can come in real handy. Talking about EMI, it can be termed as the equal monthly payment that is required to ensure that the balance of your loan become zero at the loan term completion, assuming there is no modifications in rate of interest.
With so many home loan EMI calculator available in the Internet, choose one of your choice. Next thing that you need to do is to enter the complete loan amount. You are also required to submit the rate of interest that is applicable on your home loan package. Makes sure that you enter the loan term in months.
You need to be clear in your mind whether you are paying in advance or not at the month starting or at the end of the month. Once you submit all these details, EMI calculator will calculate everything that you need to aware of including amortization tables for the loan duration.
Calculating through EMI calculator is one thing but all your focus should be on selecting a right kind of home loan package. If the package you have opted for is not up to the mark, it can have a negative impact on your financial condition. Before signing agreement with the financial institution, take into consideration EMI you need to pay.
You are not going to face any problem in paying an EMI if your monthly source of income is good and your expenses are not that high. Problem occurs when you spend too much or your monthly salary is not that high. When you do not pay your home loan EMI on time, it will make your credit rating worse. You cannot afford this, as with bad credit rating, your loan application is not going to be approved by the financial institution.
The solution for this problem is that you should pay all your dues on time and opt for a loan package you can afford. Read the terms and conditions carefully before signing an agreement. You will not be able to change any portion of it, once you sign it. Regarding EMI calculator, it is recommended that you use calculator that are being provided by your financial institution. Although, you have an option of using any calculator you want. After all, your main objective should be to get the correct result.
Many homeowners need a loan modification and if you are one of them, you should check out this handy modification calculator.
You just type in a few bits of information, such as your loan amount and income. The calculator will then figure out if you qualify for a loan modification and what your payment would be if you were to get it approved.
This loan modification calculator works off of the Obama mortgage plan guidelines (HAM Program). Under these guidelines, your monthly mortgage payment is capped off at 31% of your net monthly pre tax income. This is accomplished by lowering your interest rate to as low as 2%, extending your terms and reducing your balance.
It goes in that order. If the monthly payments are under the 31% cap from reducing the interest rate alone, then that is all your lender will do. If not, they will extend your terms, usually from 30 years to 40 years. A balance reduction is very unlikely since your monthly payments will likely be low enough after the first two options are exercised.
Many lenders have this program in place, bud sadly many homeowners do not know how to get approved on their own. Many homeowners even get notices in the mail saying they qualify, only to call up the toll free number and find out they are not approved.
This is mostly due to the fact that they do not know how to prepare their financial information properly. You cannot show you make too much or too little or you will be denied. We know where you need to be to get you approved.
If you need a loan modification, just visit the link below and try the calculator. If that payment looks like it will help your current situation, then you can fill out the form for a free consultation. There are no upfront fees, so you only pay for success.
If you’re a homeowner and are facing a foreclosure situation, you may be looking to save your home so you can continue living in it. To do so, you will have to come to some sort of arrangement with your lender regarding the payments still due on the mortgage.
In judicial states, those states that require the lender to get permission from the court to foreclose on the property, homeowners may hire an attorney to defend themselves against the foreclosure action in the court system by making an argument that the lender’s case is in error of some sort – either through fraud, or not following the proper legal processes, or by proving their records are in error.
The second and more common method of defending against foreclosure, either in judicial states or trustee states, is to work with your lender towards some sort of mutually beneficial financial arrangement that lets the homeowner continue residing in the house at some sort of modified payment plan. This method is more commonly referred to as a loan modification.
The Departments of the Treasury & Housing and Urban Development established the Making Home Affordable plan to help homeowners and lenders work together in the best interests of both parties. In the process, they established some loan modification guidelines to help servicers accomplish these goals.
The Making Homes Affordable guidelines are intended to help standardize and streamline the process. Some of these Making Homes Affordable Guidelines are specific HAMP program qualifications, such as “your loan must be owned by FHA, Fannie Mae, or Freddie Mac”, and “the property must be a primary residence.” But some other Making Home Affordable guidelines were established to help servicers develop a process of qualifying homeowners for both HAMP loan modifications and non-HAMP loan modifications.
HAMP established a methodology called the “waterfall” method for servicers to follow when working with homeowners to lower payments. These Making Homes Affordable guidelines for the waterfall method let servicers lower the monthly payments for homeowners, while simultaneously earning the highest return for the investors behind the mortgage. This creates a win-win situation for both parties – homeowners receive a lower payment allowing them to stay in their home, while the investors that lent the money minimize their financial losses and receive the highest possible rate of return on their money, that they can then use to help other homeowners buy a home.
The waterfall method calls for first reducing the interest rate on the loan in 1/8 point increments (0.125%) until the mortgage payment is no more than 31% of the household’s gross income. 31% of gross income is the target loan modification payment. Lenders/servicers may continue lowering the interest rate in 0.125% increments down to a minimum interest rate of 2%.
Next, if the interest rate has been lowered to 2% but the monthly payment is still higher than the allowable 31%, the Making Homes Affordable guidelines create the next step in the waterfall method, which is extending the loan terms (the amount of time allowed to payback the loan) in 1 month increments from 30 years (360 months) out to a maximum of 40 years (480 months). Since there will be an extra 10 years to pay off the loan, the amount of principal being paid off each month is significantly lower, thereby helping lower the monthly amount to reach the target payment.
If the highest affordable payment still cannot be reached by extending the term of the loan to 40 years, the Making Home Affordable guidelines allow servicers to both extend the term of the loan AND lower the interest rate in 0.125% increments down to a minimum interest rate of 2%.
If the target payment is still not achieved using these methods, the Making Homes Affordable guidelines define the next step in the waterfall to be principal forbearance. This is a reduction in the principal amount that can be charged interest on, while the remaining principal amount that is not charged interest is lumped together into a single balloon payment to be paid when the loan is paid off. The principal amount of the original loan balance that is now in forbearance is interest free.
The Making Homes Affordable guidelines define the final step of the waterfall method to be complete principal forgiveness. However, it should be noted that Principal Forgiveness is VOLUNTARY under the current Making Home Affordable guidelines.
How Does This Information Help Homeowners?
With the Making Homes Affordable Guidelines described above, homeowners can actually determine whether or not they meet the HAMP requirements and can use the loan modification guidelines described above to see if they qualify for a HAMP loan modification with their servicer.
Using any mortgage calculator on the internet, homeowners can follow a simple process to turn it into a loan modification calculator to find out what interest rate they would need to receive in order to meet the target HAMP loan modification payment of no more than 31% of the gross household income.
To use the calculators, simply enter the following 3 pieces of information:
the amount due on the mortgage statement
the loan term in years (or months) for either 30 years (360 months) or 40 years (480 months)
the current interest rate on the loan reduced by 0.125%
Using the mortgage calculator, keep repeating the process until the payment returned on the calculator is less than the target payment of 31% of the household income. Remember to adjust the target payment to account for monthly escrow amounts for real estate taxes, homeowners insurance, and any homeowner association fees. Simply divide the annual amounts for each expense (taxes, insurance, HOA fees) by 12 to convert the annual expense into a monthly expense. Then subtract each monthly expense amount from the target payment amount. This needs to be done because the affordable target monthly payment amount set by HAMP INCLUDES principal, interest, taxes, insurance, and HOA fees. However, lenders have no ability to modify these other expenses and can only lower the interest rate on the principal amount of the loan.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.