Home Loan EMI Calculator: Must Use Tool Before Applying For Home Loan
With real estate prices soaring in India, buying a house in one payment can be quite taxing for an individual. One of the most effective ways to generate cash for the purchase of a home is with a home loan. A home loan is an amount borrowed from a financial institution such as a bank or non-bank financial institution for the sole purpose of purchasing a home.
Are you planning to buy a house with the help of a mortgage? If so, then it is a good idea to calculate your EMI amount before signing on the dotted line.
In this article, you will learn about the advantages of using the home loan calculator before applying for a home loan, what a home loan IME calculator is, and how to calculate the EMI of a home loan using a home loan EMI calculator. Read on.
What is a home loan EMI calculator?
An Equated Monthly Instalment (EMI) home loan calculator is an online tool that helps you know the EMI amount you will need to pay for your home loan, helping you to make an informed decision.
Using an online home loan IME calculator, you can accurately find out what IMEs (principal amount + interest) you have to pay each month to pay off a home loan.
The Benefits of Using the EMI Home Loan Calculator Before Applying for a Home Loan
The affordability of your home loan relies primarily on your EMI. The EMI is the amount you have to pay consistently over the life of your loan. This is why it is important to carefully select a lender who agrees on nominal interest rates before applying for a loan. mortgage. Obtaining financing at reasonable interest rates on home loans will ensure that the interest obligation on your loan is kept under control.
It also maximizes your affordability, lets you pay a lower IME, and helps you manage your finances better. Otherwise, how do you know about an affordable IME if not by using a home loan calculator? A home loan calculator helps you know the EMI amount you will need to pay for your home loan and also helps you make an informed decision.
The benefits below will show why you should use a home loan EMI calculator before applying for a home loan.
1. It helps you plan repayment
Once you know how much you can afford to borrow based on interest rates, adjust the content to come up with an IME you’re comfortable with. This will help you better plan your repayment.
Measure your fixed expenses to see what your most crucial financial responsibilities are and where you can cut back to make sure you pay off your IME quickly. This planning will help you stay stress free throughout the life of the mortgage and remove additional costs like EMI rebound fees and penalty interest.
2. It helps you decide how much to borrow
Calculating your home loan EMI in advance using the home loan EMI calculator allows you to arrive at an amount that matches your monthly budget. You can use the free home loan calculator. Here you can adjust the home loan term and interest rate parameters as well as the loan amount to arrive at the most affordable EMI. Change the amounts until you are completely sure which IME you can pay. Based on this calculation, you can apply for a home loan in a more informed way.
3. It helps you plan advance payments
Knowing your LDE before you apply for your home loan allows you to set up prepayment plans that will help you lower your interest payments and pay off your home loan sooner. For example, you can plan your investments or save money each month to match your mortgage term and make partial payments easily.
How to Calculate Your Home Loan EMI Using Online Home Loan EMI Calculator
Now that you know how important it is to calculate the EMI before you apply for your home loan, the steps below will walk you through how you can come up with the most affordable EMI component for your loan using the EMI calculator. mortgage loan.
- Visit the EMI Home Loan Calculator page and select the loan amount of your choice. For example, let’s take Rs.50 lakh as the starting amount.
- Then in the next bar, select the tenor of your choice. In this case, let’s go for a period of 120 months (20 years).
- Then, in the next bar, select the interest rate. Here, suppose you receive your home loan at a nominal rate of 8.40% from the lender.
- After entering all of this, the 3 boxes at the bottom of the page will show the total interest payable, the total payment, and your EMI respectively. In this case, it would be Rs 24,076,076, Rs 74,076,076 and Rs 61,726 respectively.
You can continue to adjust the amounts for each setting until you reach an IEM that is affordable for you. Other than that, once you are ready to take out the loan, be sure to check your mortgage eligibility criteria to maximize the chances of approval.
Almost all of the major lenders offer EMI calculators on their websites. One of those lenders who offer you a number of tools to make the right choice is Bajaj Finserv. In just 3 simple steps, Bajaj Finserv’s Home Loan EMI Calculator will take the hassle out of you by giving you an overview of how much EMI you would pay based on your specific loan type. Use their EMI Home Loan Calculator today to make sure you’re making the best financial decisions.