Applying for a home loan is one of the crucial financial commitments that you often make in life. Through a home loan, you can take a huge percentage of the property’s value as a loan and become the owner of it now. However, to hold complete ownership, you must repay the loan proceeds you borrowed in the form of EMIs over the agreed years.
Note that availing a home loan and repaying its EMIs require extensive financial planning. For this, you must plan out your finances properly without putting any stress on your overall budget. It means you must repay your EMIs by the due date without delaying or missing out on the repayments while maintaining your monthly budget properly. To conduct accurate planning, using a home loan EMI calculator is a must.
What is a housing loan EMI calculator?
A housing loan EMI calculator is a user-friendly instrument that you can use to compute your EMI amount that you must pay each month to repay your home loan. With this calculator, you even get to know how much interest constituent the lender is charging on the loan. Accordingly, you may plan out your finances.
Just input the offered housing loan interest rates, required principal constituent and serviceable tenure and you will get a basic estimate of EMI you must pay each month. In case the EMI is very high, and you doubt your repayment potential, you may adjust your repayment tenure and loan proceeds to arrive at an affordable EMI constituent as per your repayment capacity. The higher loan repayment tenure you select, the lower will be your loan EMI and vice versa. But your interest component will increase with higher repayment tenure. Thus, decide wisely and factor in your repayment potential and budget for deciding a suitable EMI.
Read on to know how a home loan EMI calculator can assist you to make a prudent financial plan –
Endows an idea on your EMI in advance
By using the housing loan EMI calculator, you can get a rough estimate about your EMI in advance much before you apply for a home loan. It assists you in planning out your monthly budget to avoid financial issues in the future. If you are unaware of the EMI in advance, then you may be surprised with high EMI, which may be a big problem for you. Owing to this reason, you may hold the chances of defaulting in the future.
Assists you to choose the correct lender
By using the home loan EMI calculator, you can easily compare amongst lenders and determine the most favorable one as per your home loan eligibility, requirements, and budget. For example, if you have shortlisted any lender, you may know your EMI using the online calculator to make your final decision after computing the overall loan cost.
Enables you to select a favorable loan repayment tenure
Your loan repayment tenure is an important parameter that determines your EMI. Higher your tenure, lower is your EMI and vice versa. Based on the tenure you select, your overall interest amount is computed. Higher repayment tenure increases your overall interest outgo and vice versa. Thus, using a housing loan EMI calculator can allow you to compute your tenure and EMI as per your repayment capacity. Ensure to opt for the shortest tenure possible as per your repayment potential to keep your overall interest cost low.
Using a housing loan EMI calculator is very simple. To use it, you just require adding a little information to get a fair estimate about the home loan EMI instantly. You can also use this calculator to decide the best offer available to you as per your home loan eligibility.