Many opt for home loans to meet the financial expenses while purchasing a house. An individual can get this lending facility from any financial institution by showing their annual income and identity.
Home loans give high value of amount at fixed, low-cost and adjustable interest rates for a long time period. However, for a home loan to work well, borrowers need to plan the EMI payments properly. Using a housing loan EMI calculator will help borrowers plan their home loans effectively.
Things to know about a home loan EMI calculator
- An EMI calculator works on an easy formula to determine your monthly payable. The formula used is E = P * r * (1+r) ^n / ((1+r) ^n-1), where P indicates Principal amount of loan, E is EMI, n is the time period of repaying loan amount, r indicates a monthly rate of interest.
- You need to provide some basic loan details apart from the professional and personal details, such as how much you want to avail of a home loan, the property value, the repayment period. The EMI can be calculated only after filling these components.
- Approximately all financial institutions have their respective online home loan calculators on their websites, which you must use before availing a home loan.
- Advanced EMI calculators take into account running loan EMI, local, insurance and state taxes.
- In house loan EMI agreement, your input information can be tracked. On timely EMI repayments, candidates get some extra points or funds. The home loan EMI calculator can help us to get all these.
- This calculator helps you calculate your home loan eligibility, EMI amount, total payable, etc. Customers only have to put the principal amount, tenor, interest rate and processing fees (if applicable), and this calculator will give the exact figures in no time.
- Most EMI is calculated based on fixed interest rate. Although in a floating interest rate case, EMI fluctuates on the basis of change in base rates and prevailing market rates.
- With a home loan EMI calculator, you can check the numbers and figures, and decide on the best home loan package. This EMI calculator can help you compare multiple offers from different financial institutes. The result will help you evaluate each loan cost along with the respective EMIs, and you will find the best suited option for you.
Benefits of using a home loan EMI calculator
Here are the benefits of using a home loan EMI calculator:
Quick and error-free calculation:
Customers will need to enter the loan amount, home loan interest rate, and loan tenor and get an accurate result at just one click, unlike manual calculation, which is prone to errors.
Comparing different loan offer
Borrowers can use this calculator to compare different loan offers provided by various lending institutions. This calculator allows one to alter the loan amounts, interest rates and tenors so that he/she can evaluate different loan offers and settle for one that best suits his/her financial capability.
Free to use:
This EMI calculator can be used as many times as possible without paying any charge.
So, before an individual applies for a home loan, they should always take the help of a home loan EMI calculator to compute monthly payables and make an informed decision. Also, existing customers should opt for leading financers extending pre-approved offers. Such offers are available on several financial products, such as home loans, loans against property, etc., and can help streamline and expedite the application. You can submit your name and contact details to check your pre-approved offer.
To sum up, opting for a home loan is not a tedious task if appropriately planned. In this case, potential customers can use a home loan EMI calculator to make the borrowing effective and minimise the chance of last-minute hassles.