But
not all have the affordability to do that. Many people save their entire lives
but still are short of the required funds to buy a home. It is where the
facility of the home loan comes into the picture.
The
home loan is a unique funding solution that lets you get
enough funds to buy your house easily.
If
you are eligible, then you can enjoy paying lower home loan interest rates and
reduced EMIs. To repay the same, you ought to manage paying home loan EMIs.
But
many borrowers are unaware of the exact home loan EMI amount that they will pay
over the tenure. It does not help them in being confident that they can repay
the loan or not.
But
with the facility of the home EMI calculator available, you don’t need to
worry.
It
is now possible to plan your repayments much in advance and know if you can
repay the debt or not.
If
you wish to know about the usage and benefits of the home loan installment
calculator, then this post is for you. Read on!
What is the home loan EMI calculator?
The
home loan EMI calculator is a handy online tool that is available on the
website of the lender. You can use the tool and know an exact payable EMI
amount + home loan interest rates over the tenure. The tool is online and is
free of cost that you can access 24/7 and from anywhere.
How to use the home loan EMI calculator?
Using
the home EMI calculator is easy. All that you need to do is – enter a few loan
based details, and the tool will showcase the precise payable loan EMI amount.
Once you have accessed the home loan installment calculator, then you will need
to follow these steps:
- Enter your home loan amount.
- Feed the loan tenure you wish to repay it within.
- Choose your applicable home loan interest
rate.
Once
you choose these aspects, the home EMI calculator will quickly showcase the
details, such as:
-
Total
home loan interest payable.
-
Total
payment (interest + principle).
-
The
exact home loan EMI amount per month.
How is the home loan EMI calculated?
The
calculation of the home loan EMI is done using a simple mathematical formula.
Home loan EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here, P represents the principal and the loan amount.
N is the number of monthly installments.
R is the home loan interest rate.
What factor affects your home loan EMI?
⮚
The loan principal – The principal is the loan amount
that you will avail from your lender. It is directly proportional to the home
loan EMI. If you go for a lower principal amount, then you will end up paying
lower installment and vice versa.
⮚
The home loan interest rate – The rate of interest is at which
the lender offers you the home loan. It is proportional to the value of the
home loan EMIs.
⮚
The home loan tenure – The tenure is the duration in
which you repay the loan. It is inversely proportional to the home loan EMI.
Going for a longer one makes your EMI affordable and vice versa.
What are the benefits of using the home EMI
calculator?
The
home loan EMI calculator comes with many benefits. Take a look:
✔
It
gives you an accurate EMI amount payable over the tenure. You will be in
complete control of how much adjustments you need to make in your outlays to
pay EMIs.
✔
You
are saved from the hassles of calculating the EMI amount manually.
✔
There
are no errors in knowing the precise loan EMI figure.
✔
You
can compare many home loan rates in advance and pick the most affordable one.
✔
Planning
your finances becomes all the way easier and less cumbersome.
You
are now aware of the concept, usage and benefits of the home loan EMI
calculator.
Before
you apply for one, you should use the home EMI calculator and be in complete
control of your finances.
