2. EVOLUTION OF HOUSING FINANCE In 1970 HUDCO established to finance housing and infrastructure Emergence of HDFC in 1977 as a first housing finance co. in the private sector in India NHB was established in 1988 under NHB ACT in 1987 as an apex bank

3. PROFILE OF NHB Established in 9,july,1988 under NHB ACT 1987 Headquarters in Delhi 9 departments which includes: NHB RESIDEX Cell, Regulation & Supervision, Refinancing Operations, Direct Finance Operations, Enabling Processes, Information Technology, Resource Mobilization.

4. NHB also raises resources for the housing sector towards increasing new housing stock and provides refinance to a large set of retail lending institutions. These include scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks.

5. Why Housing Finance is important? Housing markets have significant forward linkages with financial market. It is routinely monitored as an important leading indicator of overall macroeconomic activity. This sector has a tremendous development impact in terms of providing Social stability & Economic development.

6. What is home loan?

7. The Home loan is a loan taken by a borrower from the bank issued against the property/ Security intended to be bought on the part by the borrower giving a conditional ownership over the property.

8. TYPES OF LOANS Home purchase loans Home improvement loans Home construction loans Home extensions Land purchase loans Bridge loans Balance transfer Stamp duty loans NRI home loans

9. REFINANCING Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.

10. Refinance has the following advantages: Refinance may result in bringing down the monthly payment amount by changing the rate of interest. It may also change the maturity term of the loan. Refinance can also improve the overall cash flow. It reduces the risk on existing loan. Refinancing can be used to pay off high- interest debt like credit card debt with a low- interest one. Monthly recurring bills on the existing loan can also be paid off through refinance.

11. Types of Refinance in India : Refinance can be of the following types: No-Closing Cost In no-closing cost refinance, one get new mortgage loan after paying some upfront fees. This refinance type is suitable for you if the current market rate is lower than your existing interest rate at least by 1.5 percentage points. However, one needs to pay Yield Spread Premium (YSP) to the mortgage company for that. Cash-Out Cash-out is suitable for home improvement as well as credit card and other debt consolidation. Here you can refinance larger amount than your existing mortgage. You can keep the cash difference with you.