Saturday, November 4, 2017

Do's And Don'ts Of Using A Home Loan EMI Calculator



EMI calculators no doubt are a great tool to help you plan the finance before you dive into loans. It helps you to forecast and plan about how much you are going to borrow and how you will manage the EMIs. 

Most of the times, using EMI calculators can be a bit confusing. Thus, there are certain steps that you must keep in mind when using a Housing Loan EMI calculator.

EMI Calculator


Loans in today’s time have become one of the important factors in buying a property or a finished house. And as per the current market status, there are a variety of options which you can choose from. 

However, a properly selected loan plan will help you avail a Home Loan in a hassle-free manner. It is essential that you select the right loan product as it can help you save much money in the long run.

In the terms of a loan, savings are a result of interest that you save on the EMIs. An EMI is an amount which you are required to pay every month once you have availed the loan. 




It depends on three variables – the amount that you borrow, the tenor of which you have borrowed and the rate of interest which is being provided by the lender. 

Most of the people used to calculate the EMIs manually, however, with recent technological transformations, you can use Home Loan EMI calculator and get the results within a second. 

If you have not used a Home Loan calculator before, here are a few do’s and don’ts that you must follow:

Do’s:


Principle amount: When deciding a principal amount, it is vital that you are realistic about the choice. 


In reality, you will never get the entire loan amount. Thus, be prepared for the adjustments. Moreover, when deciding upon a principal amount, it is necessary that you are sure with the budget. 

Having a rough estimate of the construction cost and additional cost will help you plan more realistically.

Interest rate: When using a Home Loan calculator, know that the Home Loan interest rates of every financial institution differs. 


Most of the institutions determine interest based upon the amount that you are looking to borrow. When it comes to interest rate, credit score plays a vital role. 

Most of the banks have a tentative bracket on their website, make sure you are well-versed with the interest rate that you preferred lender is offering.

Loan Tenor: A loan tenor varies from bank to bank. Some are open to providing a Home Loan of 20 years whereas others can provide a Home Loan of up to 30 years.


Don’ts:


Sticking to a single calculation: While using an EMI calculator, it is important that you check all the websites and do not just try a single loan calculator.

Do not bank completely on it: Housing Loan calculator is a great way to calculate an EMI. However, you must not rely on it entirely.

Not trying different calculations: When using a Home Loan EMI calculator, make sure that you do not just try one option and rely on it completely. Keep trying different combinations and try coming out with the best one!

Home Loan calculators help an individual to gain a fair knowledge about the overall loan process. It helps you to determine the loan amount along with the EMI calculations.



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