Home loan calculator: a tool that helps you make a calculated decision


Home loan calculator: a tool that helps you make a calculated decision

Home loans are a long-term, high-value financial product that requires efficient management and informed decision-making to avoid defaults. Since not paying EMIs on time can harm your financial record, it is imperative to find a staggered amount and repayment plan that suit your financial capabilities.

In this regard, using a home loan EMI calculator can be of great help. Such online devices allow individuals to find a monthly repayment schedule that matches their repayment capacity.

Benefits of using EMI calculator

The mortgage The Indian market is expected to grow at a rate of 22% between 2021 and 2026. Therefore, if you are planning to apply for it, find out about the benefits of these devices online and how they can benefit your cause.

1. Ease of access and use

An online home loan calculator usually comes with a user-friendly, easy-to-use interface. All a user needs to do here is enter various details of a loan like principal amount, interest rate, and term to determine their estimated EMI amount.

For those wondering how to calculate EMI using this online device, here is a step by step guide:

Step 1: Visit the website with the home loan EMI calculator
Step 2: Enter your loan program details
Step 3: Get the monthly payment amount instantly

After that, users can use the slider option or enter different loan values ​​to find a loan repayment structure that suits them.

2. Precision in the calculation

One of the notable advantages of using this online device is the accuracy it offers over manual calculation. Usually, EMI calculation involves the use of a complex formula which can sometimes lead to errors.

On the other hand, this online EMI calculator comes with a built-in automated formula which eliminates the risk of incorrect results. Hence, online support for this device helps to find the correct EMI amount, every time.

3. Instant results

The formula, which is automatically entered into the calculator’s system, calculates the EMIs for a home loan in just a few seconds. It eliminates the risks associated with a long manual calculation and also offers fast results. Hence, borrowers save a lot of time which results in a convenient and hassle-free experience.

Online calculators use the formula mentioned below to calculate EMI –
● EMI = [P x R x (1+R) ^N] / [(1+R) ^N-1]
Here, P is the principal amount, R is the interest rate, and N is the term of the loan.
Here is an example to demonstrate an EMI calculation using this formula –
An individual plans to apply for a home loan of Rs. 25 lakh for 20 years at 7%. According to the formula, the EMI will be –
EMP = [P x R x (1+R) ^N] / [(1+R) ^N-1]
= [25,00,000 x 7% x (1+7%)^ 240] /[(1+7%) ^ 240- 1]
= Rs.19,382

4. Possibility of customization

Another notable advantage of using a EMI calculator for mortgage is that borrowers can make various modifications to their loan inputs to find a favorable combination of term, payment, and total loan amount. This will help them make a more informed decision in choosing the right loan offer.

5. Access to an amortization table

The online EMI mortgage calculator also provides access to a loan amortization schedule. This sheet contains a detailed breakdown of its IMEs from the start to the end of the loan term. It also offers an overview of the interest division and major components of IMEs, helping potential borrowers plan their finances in advance.

6. Compare loan offers

The freedom to make various adjustments also helps borrowers to effortlessly compare loan principal and EMIs. This helps potential borrowers find a combination that is more suited to their repayment capacity and consistent with their financial planning. This is, in fact, one of the main advantages of calculating EMIs before taking out a home loan.

Future borrowers can also rely on this financial tool to compare the loan offers offered by different financers and choose the one that suits them best. Notably, besides taking into account the interest rate and other features extended by a financier, individuals should also check the additional charges imposed on the loan amount.

In addition to offering access to a free online calculator, major financiers also offer pre-approved offers that streamline the loan application process. These offers are applicable on several financial products, including home loans, home loans and many others. Prospective borrowers can verify their pre-approved offers by submitting their essential contact information.

An online tool like an EMI mortgage calculator makes the process of borrowers’ financial management easier. It offers an overview of loan repayment and helps find a suitable deal that meets an individual’s credit needs.


Source link

Comments are closed.