Plan Your Finances with the Housing Loan EMI Calculator

housing loan EMI calculator

Homeownership is not only a great achievement but a home also brings with itself a sense of financial stability and mental peace. When it comes to home financing, budgeting is both necessary as well as challenging. One should borrow what one can easily repay. More importantly, borrowers must calculate their home loan EMIs for their preferred combination of loan amount and tenor beforehand so that monthly budgeting and repayment planning becomes easier. Thankfully, these days, the advent of online tools, such as the home loan EMI calculator, has made home loan repayment planning simpler, easier and quicker. 

This article walks its readers through the process of using a housing loan EMI calculator and the benefits of using this online tool. So, read on, especially if a home loan application is imminent for you. 

What is a Housing Loan EMI Calculator? 

The housing loan EMI calculator is an online tool that lets home loan applicants calculate the home loan EMIs they will have to pay each month for the specific combination of loan value and loan tenor that works for them. 

Using the EMI calculator is fairly easy. Search the internet for this tool and you will find at least a few different options to choose from. Choose to operate this tool on a reliable website. Using the housing loan EMI calculator to prove your eligibility for the most competitive home loan interest rates is easy. One must simply follow these steps:

  1. Select the loan value or loan amount based on your income and affordability. To have good negotiating power concerning loan terms and conditions, decide the loan amount in such a way that no more than 40% of your total income goes towards the repayment of home loans and other debts. 
  2. Next, enter the loan tenor and the number of years you want to repay your loan comfortably. While deciding on the loan tenor, keep the age-old motto in mind: keep the loan tenor as short as possible while also keeping your loan EMIs as affordable as possible. 
  3. Finally, enter the home loan interest rate you are being offered and click on calculate. 

As soon as these details are fed into the housing loan EMI calculator, the online tool will not only tell you the EMI you will have to pay for your desired combination of loan value and loan tenor but the calculator will also tell you the total interest you will pay your lender as well as the total cost of borrowing the loan. This online tool will also give you an amortization schedule which is a tabular representation of all your EMI payments and their impact on the total principal and total interest repayment. 

Benefits of a Housing Loan EMI Calculator

The housing loan EMI Calculator is a highly beneficial tool that every home loan applicant must use while applying for a home loan for the following reasons: 

  1. While one can calculate EMIs manually, manual calculations are time-consuming, mentally taxing and susceptible to errors. A housing loan EMI calculator takes only a few seconds to calculate one’s loan EMIs. It therefore helps save time and effort, which a loan applicant can devote to other important tasks.
  2. When it comes to home loans, loan applicants are always advised to shop for competitive home loan interest rates. Using an EMI calculator, loan applicants can easily compare loan offers from different lenders and choose the best one for them.
  3. Further, since the home loan EMI calculator is quick and accurate, home loan applicants can use it to try various combinations of loan tenor and loan values so that they find the most ideal combination for them.
  4. Knowing one’s EMIs in advance makes it easier for home loan applicants to do monthly budgeting and plan expenses. It allows home loan borrowers to cut down on unnecessary expenses and create an ideal income-expenditure ratio to make home loan repayment easy.  
  5. With the help of the amortization schedule provided to borrowers by the housing loan EMI calculator, borrowers can easily select the ideal time for prepayments and foreclosure. 

Final Words

The housing loan EMI calculator is a free and highly beneficial tool that all loan applicants must necessarily include in the home loan application process. Home loan applicants should also use the home loan eligibility calculator to ascertain the loan amount they are eligible for and apply for this same loan amount to increase their chances of being able to avail of a loan on the most beneficial loan terms and conditions, including highly competitive home loan interest rates. 

By guestpost013

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