Mastering Home Loan Calculations with Online Calculators

If you are planning to apply for a home loan, you must avail yourself of a loan amount that you can easily repay. Further, it is also important that you choose a loan tenor that allows you to become debt-free quickly without feeling too burdened. A home loan EMI calculator can prove helpful in this regard. A home loan EMI calculator is an online tool that borrowers can use to calculate home loan EMIs in advance. The home loan EMI calculator is easy-to-use as well as free and one need not pay any fee to use this tool. Before we talk about the benefits of a home loan EMI calculator, let us look at how to use the calculator.

Steps to Use a Home Loan EMI Calculator

If you wish to use a home loan EMI calculator, simply follow these steps:

1. To start with, enter the loan amount that you wish to borrow.

2. Next, enter the loan tenor that you wish to go for.

3. Finally, enter the rate of interest you are being offered.

4. Once you enter this information, the home loan EMI calculator will give you your loan EMIs. Alongside this, it will also give you your total interest outgo on the loan.

Now that we know how to use a home loan EMI calculator, let us look at the benefits of a home loan EMI calculator and why everyone borrowing a home loan or repaying one should use this tool.  

Benefits of a Home Loan EMI Calculator

Here are the benefits of a home loan EMI calculator and here’s why you should use this calculator. 

1. One of the key reasons why you should opt for a home loan EMI calculator is that it helps borrowers decide the right combination of loan amount and loan tenor for them. The home loan EMI calculator is quick and therefore, borrowers can use it to try out various combinations of loan tenor and loan value until they arrive at loan EMIs that work best for them. Thus, the home loan EMI calculator helps borrowers take right decisions regarding their home loan. 

2. The formula used to calculate home loan EMIs is complex and manually calculating one’s loan EMIs increases the scope for errors. A home loan EMI calculator removes the scope for any errors. 

3. The home loan EMI calculator helps borrowers decide the right loan amount for them. In other words, it helps borrowers borrow what they can comfortably afford. When borrowers borrow what they can comfortably afford, chances of defaulting on loan repayment decrease too. Thus, a home loan EMI calculator also saves borrowers from late fee and charges. 

4.  The home loan EMI calculator helps borrowers decide the right time for loan prepayment and foreclosure. Foreclosure refers to the process of closing one’s loan account by paying the entire remaining about due. Prepayment refers to making lump sum payments towards one’s loan account. Foreclosure and prepayment help borrowers become debt-free quickly and also save on the total interest outgo. However, these facilities prove beneficial only when opted for at the right time. A home loan EMI calculator helps borrowers decide the right time for loan prepayment and foreclosure. 

The home loan EMI calculator is a handy tool that all borrowers must use before initiating your home loan application. One can easily find this tool online. It is also free to use. So, make sure to use it.