A Home loan is not just a credit, it is indeed a commitment. Many a time a home loan becomes the driving force to make our home owning dream come true. But the home loan experts suggest considering a number of points to ensure the best outcome of your credit.
All home buyers are well aware of the fact that home loans are long term loans. One has to foresee the finances of coming 10 to 20 years before taking the home loan decision. One of the greatest tools to help in taking the right home loan decision is a Home Loan EMI calculator. A home calculator provides a lot of data to help you in taking the right home loan decision. Let’s learn more about the home loan EMI calculator.
What is a Home Loan EMI Calculator?
An EMI calculator is a financial tool that helps to give a fair understanding of the loan. It provides you with important data like the EMI amount, the total amount you will pay at the end of the tenure, the interest on your loan etc. Along with the same, you will get the amortisation table which will show the breakup of the interest and principal amount for each EMI.
Most of the home loan lender’s provide an online home loan EMI calculator on their website. By providing the basic information like the principal amount, rate of interest and tenure of your loan, you can find all the above information within seconds.
Benefits of Using Home Loan EMI Calculator
Helps to Make Better Plans for F
A home loan EMI calculator leaves no room for doubt regarding the payments of your ongoing or your projected home loan. If you get to know the EMI amount of your upcoming loan, you can plan the finance of your budget accordingly. If you find that you are enabled to pay a higher EMI, you can increase the loan amount to purchase a better home or decrease the tenure to become debt free sooner. A home loan EMI calculator helps you to make informed decisions.
You Can Find Your Loan Eligibility
Knowing your loan eligibility saves you from the possible rejection of your home loan application. As mentioned above, a home loan calculator helps you to find the EMI amount of the loan. If you have any ongoing loan then you are to add it with the EMI of your home loan. Now you are to check that the total of the EMIs should not be more than 40% of your net monthly income. If the total is more than 40%, the lender may reject the loan application. In such scenarios, you can take steps like paying off the existing loans before applying for the home loan, decreasing the principal amount or increasing the loan tenure to get an easy approval of your home loan.
Streamline Finances for Home Purchasing
Knowing the EMI amount or the break-up of principal and interest component helps a borrower to prepare for the home purchasing. Once you know your loan eligibility, you can fix your budget. Knowing the amount you can get as a home loan gives you a clear picture of the amount you can invest in your home. Moreover, one can make better plans for part payment and prepayment once they find the amortisation table.
How to Use a Home Loan EMI Calculator
Using a home loan calculator to get information on your home loan is very simple. It requires just a few steps to be taken.
Follow the steps and find the EMI of your home loan
Step 1- Click the link below which will redirect you to the online EMI calculator provided of Finance Buddha.
Step 2- Provide the loan amount you want to apply for.
Step 3- Mention the home loan interest rate of your preferred bank.
Step 4- Mention the loan tenure of your choice.
Once you provide all those mentioned pieces of information, you will get the Loan EMI amount, total Interest payable and total Payment of the loan which includes Principal and Interest. You can alter any of the data to recalculate the loan EMI. Your home loan details can be found within a few seconds by using home loan EMI calculator of Finance Buddha.
So make the best use of this tool and find the best home loan.