Propertybharat.com is a premier indian property portal covering all india. In  this link we will try to give you some knowledge about home loans in india.  It will not be wrong to say that the key to securing your future is home loans. You not only own the house by paying the required amount for down payment, but also enjoy tax benefits on repayment towards the principal and the inerest charged  on the loan once you get the possession of the house. The word mortgage is a Law French term meaning "dead pledge," apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the property is taken through foreclosure Here we list few things that you will need to know while applying for a home loan. . Here you will also find list of banks in india  giving the home loans &  links to articles related to home loan.

Types of Home Loan
There are different types of home loans available in the market to cater borrower’s different needs.

• Home Purchase Loan : This is the basic type of a home loan  for purchasing a new house.

• Home Improvement Loan : This type loan is for the renovation or repair of the home which is already bought

• Home Extension Loan : This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room or extra floor etc.

• Home Conversion Loan : It is that loan wherein the borrower has already taken a home loan to finance his current home, but now wants to move to another home. The Conversion Home Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfills the money required for new home.

• Bridge Loan : This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home.

• Home Construction Loan : This type of loan is taken when the borrower wants to construct a new home.

• Land Purchase Loan : this type of loan is taken to purchase a land for construction of bungalow or row house etc 

HOME LOAN POINTS  ONE SHOULD KNOW -

1. Fixed Rate loan
Fixed rate loans are the loans that have a stable rate of interest. Here the rate of interest is unaffected with the changing market scenario. This loan is taken by people who prefer to know the exact cost of the loan and are happy to pay a fixed amount or when there is an expectation of a rise in the market value. However, there is a clause attached with the fixed rate pattern that could actually result in floating rate loan. The rate of interest could come up for review after a certain period of time in order to keep in accord with the market condition. This would lead a need for a change in calculation by the borrower with the earlier being thrown out.

2. Floating Rate loan
The floating rate on housing loans is a pattern where the rate of interest is not stable. The interest rate fluctuates with the change in the rates in the economy. The borrower can gain form this type of interest charge when there is a dip in the rate of interest, bringing down the cost of the loan. This could also take a turn for the worse incase of an increase of the rate that takes the cost to a greater height.

3.Hybrid Structure Loan
This facility is for those who are caught in two minds over the fixed and fluctuating loans. This kind of loans brings both into one option. First there is the fixed rate pattern where the borrower need not worry about the fluctuating rates in the economy. He can make payments based on a fixed rate and be protected for some time. The second stage of repayment is taken through fluctuating rate method. For people hoping for a decline in the later stage of repayment, this is the ideal form of repayment as they might just be able to cash in on a dip in the rate of interest.

4. EMI

Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal

5. Monthly Reducing Balance

In this system interest reduces monthly with repayment of Principal amount

6. Annual Reducing Balance

In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back

7.Processing Chaarge

A one time fee which is normally non-refundable and payable along with  initial loan application. Rates can vary from 1-2% of the loan amount.

8.Prepayment Penalities

 When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment

9.Commitment Fee

 Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned 

10. Refinance Charge