Be it a home loan or any other type of loan, it requires proper planning so that it does not become a cause for worry in the future. Since home loans are huge financial investments and extend over a long period, it is advisable to do proper research before applying for one. You should be well aware of the home loan interest rates today. Using the housing loan EMI calculator, you can compare the current home loan interest rates being offered by various lenders. Other benefits of this tool are mentioned below.
What Are the Benefits of Using a Housing Loan EMI Calculator?
Easy to Use –The housing loan EMI calculator is very easy to use. You can get an estimated monthly EMI amount by just entering the required loan amount, the interest rate, the processing fee (if available), and the loan tenor. The loan EMI calculator will give you an answer within seconds. It also helps understand how much loan is best for you considering your repayment capacity. Using a home loan calculator is easy and anyone can use the calculator simply by going online and using the particular lender’s page on housing loan EMI calculator. With just a click of a button, you can know your monthly home loan EMI.
Provides Estimated EMI Amount – The most important function of the housing loan EMI calculator is to give an estimated EMI amount that will need to be paid for the housing loan. To calculate this, you will need to provide the amount to be borrowed, the rate of interest offered, and the tenor of the loan. This estimate can help you choose from among the various lenders and go with the one offering the best current home loan interest rates. Based on this estimate, a person can plan the rest of his monthly expenses and check if the EMI amount is feasible or not. You can also calculate how much of a down payment is essential for you to pay less for EMIs.
Helps to Choose the Right Interest Type –Home loan borrowers are offered mainly two types of housing loan interest rates: floating and fixed interests. The floating interest rates as the name suggests fluctuate with the market rate and are cheaper than the fixed rates. The SLR or the statutory liquidity ratio is a tool used by the central bank to keep a check on all credit rates in the country. This impacts the bank rates and in turn, housing loan interest rates are also affected. Using the housing loan EMI calculator, one can know and avail of home loans at interest rates that are feasible for them and select the lenders who offer the lowest rates.
Select the Right Tenor for Home Loan –The housing loan EMI calculator tool can help to calculate your monthly EMI for a loan tenor. You can opt for higher EMI and a shorter loan tenor. If not, you can always extend the loan tenor/period to what you are comfortable with while paying a lower EMI. But if you have already availed of a home loan and think the EMI is too much you can always do a home loan balance transfer. It will help you get lower home loan rates and the tenor best suitable for you. So, the housing loan EMI calculator can help you understand how extending the loan tenor can be helpful for you.
Comparing Loan Offers from Lender – The housing loan EMI calculator tool is an important tool for the borrowers as it can be used to compare the interest rates, home loan amounts, tenors, and check the home loan eligibility criteria of a borrower. This knowledge helps the borrower to know and plan finances before applying for a home loan. Lower home loan interest rates and the right tenor as suggested by the home loan EMI calculator tool can help you to compare all home loan offers and select the best lender. The housing loan EMI calculator can also help to check if you are eligible for a top-up loan from your current lender.
Helps Make Good Financial Decisions –If you are thinking of availing a housing loan, remember that financial planning and management that comes with it can at times be difficult and frustrating. You will need to prepare a monthly budget to understand where your money is going. This is where the housing loan EMI calculator helps you to understand what would be your financial standing after paying the monthly EMIs and other fixed monthly expenses. It helps you to plan and clear off old debts to have a good credit score. This in turn will help you to get home loans at lower interest rates and decrease the debt burden.
Suggests When Home Loan Balance Transfer is Feasible –Even a small amount saved on home loan interest can help to save a substantial amount in the long run. Thus, the home loan EMI calculator helps to compare home loans and choose the best lender. If you are an existing home loan borrower, and still have years of loan repayment pending then the calculator can help you understand the benefits of a home loan balance transfer. It can help you understand how much you can save on EMIs on a home loan balance transfer and how this can help you. Thus, the housing loan EMI calculator tool can help to make the right financial decisions for your future.
From the above discussion, we can infer that the housing loan EMI calculator is a tool that can help you plan your finances, and help you understand your financial position before applying for a home loan. It can help you select the best home loan lender offering the most suitable interest rates, and know how much down payment will be just right for feasible EMIs. So, if you want to avail a home loan, make sure you are aware of all the above factors and use the housing loan EMI calculator tool to make the right decision.
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