If you are planning on buying a house or renovating an old one, you must be worried about arranging for a huge sum. A home loan can be an effective way to see through a financial crisis – but a home loan interest calculator can make the entire process a lot easier. With the help of a home loan interest rate calculator, you could double your chances of getting a loan amount that fits your budget right and does not feel like a burden!
All You Need to Know About a Home Loan EMI Calculator
An online home loan calculator tool is designed to calculate the monthly payable EMIs throughout the chosen tenor. It is undoubtedly one of the best features of a home loan plan. The calculator offers a detailed breakup of the home loan interest rate along with the EMI and the principal amount, which makes it easier for the borrower to plan future prepayments.
To use a home loan EMI calculator, all you have to do is –
- Enter the home loan amount you want to apply for
- Choose an affordable rate of interest (this partially depends on the borrower’s profile)
- Select a home loan tenor
The calculator will instantly show you the EMI amount you will need to pay every month toward your loan repayment. A home loan interest rate calculator also helps you come up with a suitable amortization scheduled depending on the borrower’s financial health.
How Does a Home Loan Interest Calculator Make Loan Planning Easier?
There are multiple benefits of using a housing loan EMI calculator, such as the following –
Ease of Accessibility
The home loan calculator is easily accessible online and can be used for free. The steps to use it are also quite simple and straightforward. The ease of accessibility makes the job all the more easy for first-time borrowers. All you need is your smartphone or a laptop or computer and stable internet connectivity to access the calculator anytime, from anywhere.
Error-free Calculations
With a home loan EMI calculator, the possibility of making errors are fewer than in the case of manual calculations. This is because the calculator estimates the value based on a mathematical formula, which automatically minimizes the risk of miscalculations. Moreover, it saves a lot of time and effort. Borrowers can rest assured that the results shown are accurate and reliable.
Helps in Prepayment Planning
Since a home loan interest rate calculator gives an accurate estimate of the EMI, principal and total interest payable at the end of the tenor, it helps the borrower plan his/her repayments in advance. That way, one can prepare a schedule keeping all other expenses and financial obligations in mind. If you think you have surplus funds to match the estimated EMI, you could also consider going for a larger prepayment to repay the loan sooner than expected. However, in such cases, you may have to pay the lender a negligible fee, known as the ‘foreclosure fee’ for closing the home loan before time. Nevertheless, it is always a good idea to make prepayments whenever possible to settle the loan amount and reduce the interest burden.
Zero Limitations on Usage
One of the many reasons why borrowers find it easier to use a home loan interest calculator is that it comes with a zero-restriction usage benefit. This basically allows the borrower to use the online tool ‘n’ number of times for multiple variations and combinations until they arrive at a result that suits their interest and financial appetite. With this feature, borrowers can also compare different EMI options by several lenders at once before choosing the one that they find convenient.
Offers Security
A home loan interest rate calculator is often preferred by borrowers due to the security it offers. The device is designed to keep the identity of its borrowers safe for a seamless, risk-free experience.
Despite all the reasons for using a home loan interest calculator listed above, one must take into account all possible financial angles before signing the dotted line. When deciding on a loan amount, it is important to consider monthly expenses, source of income, outstanding debts ad existing liabilities. Your lender may also advise you to review your financial health occasionally to ensure the repayments are carried on smoothly.
Having a comprehensive idea of a home loan EMI calculator, its features and benefits, proceed to choose a lender that can offer you the best interest rates and a suitable loan amount favourable to your condition. Bajaj Housing Finance Limited offers home loan interest rate starting at 8.25% and a flexible repayment tenor to evenly spread out your monthly payouts, which can be beneficial in the long run.
