Purchasing a property is a long-term financial goal. So, it is a misconception that opting for a housing loan is the last step to your investment. Different housing loans demand different requirements. Thus, deciding on the right choice happens with a compiled strategy. What you do after availing the real estate loan is the most crucial parameter.
Not to forget, a home loan is a simplified and effective process of gathering the funds to purchase a home without compromising on your tight budget. The decision of purchasing a home is long-term, and this makes it more significant to do one’s research right.
Most lenders offer home loans with long tenures, upto 20 years. . Multiple financial institutions offer affordable interest rates to make the housing loan more reasonable for customers.
If you consult more than one financial institution, you will find that they offer either a fixed or a floating interest rate. Customers may choose either floating or fixed rates, depending on their requirements.
You will then need to pay these loans over a series of monthly instalments or EMIs. On this note, let’s understand the importance of using an EMI calculator. It is important to note that using a housing loan calculator ensures better planning and management of funds. Read through the article below to thoroughly understand a home loan calculator before delving into the detailed overview of its benefits.
What Is A Housing Loan Calculator?
A housing loan calculator assists you with the loan EMI. With the help of the calculator, you will be able to make informed decisions about your real estate investments.
The calculator is a valuable asset in planning your cash flow for your home loan. The calculator facilitates in evaluating the amount you’ll be required to pay as an EMI every month. All in all, it simplifies and promotes a hassle-free process of quickly paying the loan’s instalments.
On this note, the following are multiple ways an effective home loan EMI calculator can help you.
The Benefits of Using A Home Loan Calculator
Given below is a list of the benefits of using a house loan calculator:
1. Selecting The Appropriate Tenure
You can use the home loan calculator to calculate the monthly EMI for the loan tenure. If the resulting EMI feels too high, you can choose a longer tenure for the loan. On the other hand, if the EMI amount is too small, you can consider shortening the tenure so that your loan can be repaid quicker. In this manner, using a calculator to evaluate the amount of each of the instalments beforehand becomes simplified.
2. Simplified Process of Using
Implementing the use of a housing loan calculator encompasses a simple process. The only key criterion to look for is your principal amount, loan tenure, and interest rate. A precise calculation of the instalment can be done within a few seconds.
3. Comparison Between Competitive Quotes
With a hundred lenders providing simple home loans to potential borrowers, it becomes exceptionally daunting to select the right one. For this purpose, an EMI calculator can assist you in comparing the cost of these loans differently. In this manner, it can help derive value for money.
4. Loan Management Becomes Effective
You may come across challenging situations during the loan tenure while having access to the additional funds. In such scenarios, your home loan calculator is handy to learn about your prepayments even before the specified end of the loan term ever impacts the EMIs or instalments.
5. Do Not Ask Any Personal Details
A home loan calculator available online is completely safe as you do not have to provide it with any kind of personal details. Just put in the loan tenure and borrowing amount, and it will calculate your EMI.
The Bottom Line
Lastly, you don’t need to be a mathematical genius to calculate your loan. The only requirement is to learn the fundamental terms before using the money-management tool to make better financial decisions.
Some important terms to be aware of are loan tenure (timespan within which you must repay the instalments, principal amount (total borrowed sum of money), applicable interest rate, EMI, etc.
So, these are the ways a home loan EMI calculator can calculate the amount you’d have to pay as instalments and help you plan your finances better. If you need a home loan or want to calculate the EMI, or require any guidance regarding your finances, you can contact Grihashakti.