A housing loan is an excellent way to buy your dream abode immediately rather than waiting for a lifetime to save for the lump sum. With the rising prices of real estate, buying a home is always an investment that one cannot furnish in a single installment. Home loans provide that lump sum where one has to repay in monthly instalments for a tenure chosen by the individual.
A home loan calculator avoids the hassle of calculating the tedious formulas manually. It helps you determine the monthly instalments in an instant to make quick decisions.
Most lenders offer flexible tenures for home loans. Hence the borrower needs to arrive at the suitable tenure and instalments that are affordable to them. Calculating home loans on your own is no less than a cumbersome task. Not to mention altering the values each time and recalculating using the formula. Hence all housing loan financing institutions have a home loan calculator on their website to calculate their monthly repayments.
A useful tool like a home loan EMI calculator has various other benefits. Let’s check them.
Know the Benefits of Using a Home Loan EMI Calculator?
A housing loan calculator helps you plan finances without going overboard. It helps you make an informed decision in choosing your affordable EMI beforehand. This way, you can plan the budget and tenure that fits your bill.
Comparing Loan Offers
Calculating your housing loans in advance helps you gauge and research the competitors. Home loans involve a huge sum, and hence it is always imperative to research all options to narrow down on one. Calculators provided on the financing institution’s website will help you discern who offers the best home loan interest rates.
Choose the Best Home Loan Interest Rates
The home loan calculator helps you choose the optimum monthly instalments with the best home loan interest rates. Choosing a longer tenure increases your total interest payout. Whereas opting for a shorter tenure with increased EMI decreases the same. A home loan calculator helps you arrive at a balance to determine the best possible balance.
Gone are the days when one needed to estimate their EMI with the formula EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1] manually. Now one can obtain accurate results in a matter of seconds by leveraging the home loan calculator.
Choosing The Right Tenure
It helps you choose the right tenure for your loan. The self-planning financial tool helps you independently estimate your tenure before borrowing and understand if it suits you.
Helps You Calculate The Prepayments
Home loan calculators can help you with prepayments too. If you have extra funds to prepay the loan, you can use the same calculator to understand the change in interest and check if prepayment is beneficial for your finances.
No Room For Miscalculation
Human calculations may lead to errors, which could lead to issues later. The home loan EMI’s provided by the calculator is accurate by 100%. However, do note that the calculator will not account for any additional charges such as insurance fees, late payment fees, service charges, etc.
No Need To Sign Up
The home loan calculators are free, and hence it does not require you to provide your details to the lender. You can find these calculators on any lender’s website, and most of them do not require you to sign up. Hence, there are no security issues involved in using it.
How to Use a Home Loan EMI Calculator?
You can calculate your home loan EMI quickly simply by adjusting the sliders for the three mandatory fields:
- Principal Loan Amount
- Home Loan Interest Rate
- Loan Tenure
Depending on your entry, the results will automatically display on the website. Adjust the sliders to change the values to choose the right loan tenure based on your income.
A home loan calculator is an indispensable tool for any home buyer to understand the downpayment and ensure timely payments. Compare your offers to make a thoughtful decision.It is important to do thorough research before availing of a home loan as it is a once in a lifetime decision. It is important to choose a reputed lender to get the best home loan interest rates. Choosing a reputed lender allows you to enjoy high home loan eligibility, a hassle-free application process, minimal documentation, low interest rates, and good customer support.