Financial Planning for Your Home loan
Availing a home loan is one of the biggest financial commitments, and needs proper financial planning to repay the borrowed amount.
A proper financial planning involves planning your finances in such a way that you can repay your loan without any difficulty, this means paying your EMIs on time without any default and without affecting your household budget.
To plan accurately you must know how much your home loan is going to cost you, how much will be your monthly EMI? Your EMI depends on the amount you borrow, the interest rate charged for your borrowing, and the tenure period for which you have taken the loan.
However, knowing your exact EMI before taking the loan was a bit difficult earlier, but now it has become so easy with the introduction of Home Loan EMI Calculators. You can find a home loan calculator on the official website of different lenders and FinTechs.
What is Home Loan EMI Calculator?
A home loan EMI calculator is a financial tool using which you can get to know the amount which you are going to pay as EMI towards your Home Loan. This helps you to plan your finances in advance and to take the decision wisely. Through a Home Loan EMI Calculator, you can also get to know the interest rate which will be charged for your home loan.
You just need to enter the principal amount, tenure period, and interest rate- and you will get your approximate EMI in the result. Simple to use and yet very useful to the borrowers.
How does a Home Loan Calculator Help in Financial Planning?
It Helps you to know your EMIs in Advance
As mentioned above, a home loan EMI calculator helps you to know the EMI in advance before taking the loan. This helps borrowers to plan their monthly budget more efficiently. Moreover, knowing your EMI in advance helps you to skip future problems.
Suppose you don’t know your approximate EMI which your loan is going to cost you, and you get to know your EMI after taking the loan which you can’t afford to pay monthly. This can be a serious issue and can put you in major problems. Using a home loan EMI calculator is the one solution to all these problems.
It Helps You to Choose the Right Lender
Using the calculator, you can choose among the various lenders and can get the best-suited one for you.
For example, you have 3 options among the lenders, who are ready to provide you a home loan. By using a home loan EMI calculator you can get to know the EMIs which you need to pay to when you choose each lender. Based on the EMI, and total borrowing cost you can decide your lender.
It Helps You to Choose the Right Loan Amount
You decide a certain amount to borrow based on your requirement, but borrowing is not a big deal, but the repayment is.
One should always borrow that much, which he/she can repay easily. Using the EMI calculator you can get to know what you can afford to repay and what you can’t. In case you can’t afford to repay a particular amount, you can reduce the principal amount according to your budget and finances.
It Helps You Choose the Right Tenure for your Loan
Using the EMI calculator, you can choose the right tenure for your home loan. One of the most important factor which decides your EMI is the tenure period of your loan. A long tenure reduces your EMI, whereas a short tenure means a higher EMI. So, as per your requirement, you can choose the tenure period of your loan, to make the EMIs affordable to you.
Factors that affect your home loan EMI:
- Principal Amount,
- Tenure period,
- Interest rate.
How to use the Home Loan EMI Calculator?
Using the EMI Calculator is very simple, just visit: https://financebuddha.com/home-loan-emi-calculator
Choose the loan amount, rate of interest, and tenor period for your home loan, and you will get the home loan EMI, Total Interest payable & Total Payment (Principal + Interest).