Benefits of Using the Home Loan EMI Calculator Before Applying for a Home Loan

It pays to make conscious decisions every day, and the same value is extended to financial decisions too. We aren’t talking about grocery shopping but long-term commitments like a housing loan. Houses are expensive, and if finances aren’t planned accordingly – it could cost you more than it is worth.

To easily purchase your dream house, taking a housing loan is one of the best options to consider. However, even though taking a home loan sounds like an error-free decision, you should be cautious. Remember, it’s a long-term decision. Most lenders allow repayment to last for up to 30 years.

To navigate your way through planning a repayment schedule, we recommend using home loan EMI calculator to give you the most realistic idea of what the next several years could look like – in terms of Home Loan EMIs and your personal finances.

What is Home Loan EMI? 

When you want to pay for an item at the mall, you’ve got plenty of options. Cash, cheque, or credit card. The only way you repay a housing loan is in equated monthly instalments, also known as EMIs.

This means that you remit a portion of your salary or earnings to the lender. This continues throughout the tenor. As mentioned above, tenors can be up to 30 years or less depending on your eligibility.

Some lenders insist that you earn up to a certain amount before applying. They say this not to discriminate against applicants but to prevent you from taking a housing loan that you cannot repay. The EMI is divided into two parts, the principal amount which is the loan value, and the interest component which the lender charges you for taking the loan.

If you have chosen a lender, you should opt for an amount that you can comfortably repay. How do you know what amount suits you? To help you gauge, you can use an online home loan EMI calculator that draws up a tentative EMI forecast based on the data you input.

What is a Home Loan EMI Calculator?

This is an online tool that enables you to make informed decisions. It’s user-friendly and delivers accurate information instantly. With it, you can uncover the myth of your home loan EMIs.

Most lenders offer the home loan EMI calculator on their websites so you don’t have to rely on pen and paper. It’s an automated tool which means that it comes with a high accuracy rate.  To use this tool, simply input your desired loan amount, tenor, and interest rate.

What are the Advantages of Using a Home Loan EMI Calculator? 

Below are five advantages of using a home loan EMI calculator.

1. It Displays Precise Results

If you use the calculator, you are assured of correct information. With the right details, you can select the rightful amount and avoid complications while paying the EMIs.

2. It Saves Time

Relying on yourself to make accurate EMI calculations might be time consuming. The Home Loan EMI Calculator is time thrift, and provides you with accurate information in record time, saving you precious hours that can be spent finding the perfect property for you.

3. You Can Make Smart Decisions

The goal is to take a housing loan and buy, build, or renovate a house with the amount. When repayment begins, you should have no trouble. Not using a calculator can ruin your hopes of having a hitch-free loan tenor.

It provides vital information, so not using it is unwise and can spell trouble for you in the future.

4. You Can Compare Lenders’ Interest Rates

Many lenders offer different interest rates on their home loan deals. To choose the best interest rate, you need an online home loan EMI calculator. With it, you can study several interest rates at once. By doing so, you avoid paying high interest.

5. It’s a User-Friendly Tool 

You know that it’s an accurate tool and rapid, but what’s most amazing is that it’s easy to use. Simply visit your prospective lender’s website and use it today.

Two Ways to Lower Your Current Home Loan EMI 

If you already have an active housing loan and are paying high EMIs, here are two easy ways to curb that:

1. Apply for a Balance Transfer 

This is a process whereby you move the remaining home loan balance to another lender. By doing so, you pay only what the new lender charges you. Before opting for a balance transfer, ensure that you meet the new lender’s requirements.

2. Make Frequent Prepayments

If you’re on a floating interest rate, you can reduce your EMIs by making prepayments. This involves paying a lump sum towards the EMIs. This will drastically reduce the EMIs and the burden of paying them.

Final Thoughts

Buying a house is a wise choice because it becomes an asset capable of mega returns. However, taking a housing loan that you can’t repay isn’t a smart decision, and it can negatively impact your ability to meet other expenses. Avoid future repayment problems by using an online home loan EMI calculator today.