The home loan calculator calculates your home loan EMI instantly based on the mentioned loan amount, interest rate, and loan tenor. The home loan calculator also gives details about the interest payable, principal payable, and amortization schedule. It helps you understand and plan your home loan repayment better after considering all factors and your repayment capacity. If you are planning to take a home loan, we recommend that you use a home loan calculator before taking any decisions. Let us look at some of the benefits of a home loan calculator.
Benefits of Home Loan Calculator
Let us now discuss the benefits of the home loan EMI calculator:
Easy to Use –The home loan calculator is easy to use. You just need to enter the loan amount, interest rate, processing fee (if available), and tenor, the rest will be done by the home loan calculator. The calculator also helps you understand how much loan is best for you considering your repayment capacity.
Break-up of the Finance Charges –The home loan calculator helps you understand the total interest payable, and processing fee associated with your home loan EMI. It makes it clear to the borrower what EMI they will be required to pay and the other charges applicable.
Comparing Loan Offers – This tool can be used to compare loan offers from various banks/lenders. It helps you decide and narrow down on the lender offering the least home loan interest rates and the best tenor option.
Choosing the Right Loan Tenor - Knowing approximate EMIs with the help of the home loan calculator, you can choose the right tenor for your loan. The tool helps to decide whether you should go for a short-term or long-term home loan.
Helps with Financial Planning and Loan Management – The home loan calculator helps you plan your finances in an effective way to ensure smooth loan repayment. The home loan calculator can help you see how prepayments can help to pay off the loan before the term ends and thus, helps you increase your savings.
Read Also: Benefits of a Home Loan EMI Calculator
Final Words
The home loan calculator provides a clear understanding of the amount that needs to be paid towards the EMIs and helps make an informed decision regarding home loans. This calculator helps estimate the loan amount that can be availed of and find out how much own contribution is required and the cost of the property. Thus, by helping to calculate the monthly EMIs, the home loan calculator helps you plan a smoother home buying journey.
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