Here’s how a home loan calculator can make planning a home loan easier

Planning a home loan isn’t just about finding the right home lender who can adequately meet all your financing needs – it also means doing everything you can to improve your chances of getting a loan. competitive real estate that complements your financial situation. location and needs. This involves making sure your CIBIL score matches the lender’s requirements, improving your repayment records, and most importantly, applying for a realizable home loan amount that suits your repayment capacity.

The home loan amount you are requesting is the first thing the lender assesses, as full repayment of the loan amount is the lender’s primary concern. Keeping this in mind, lenders assess your financial stability, repayment capacity, and likelihood of sticking to the repayment plan, and if the amount you are requesting seems more than you can afford, your loan application may be rejected.

Home loan rejections can slow down your plans to buy a new property and, even worse, affect your credit profile. To avoid such circumstances, you should tailor your home loan application to meet the lender’s comfort and lending criteria, including establishing a provisional EMI repayment plan in advance – anticipating your repayment power and your budget. For this, you can use a home loan EMI calculator that tells you what your EMI amount may look like based on your desired home loan amount.

What are the features of a home loan calculator?

Home loan calculators are free and available online, so anyone interested can use them to plan their home loan repayment. These calculators are nimble and fast, bringing data-driven results with almost no errors. Here are some characteristics of a home loan EMI calculator that you value on usefulness.

1. Accurate EMI calculations

The main advantage of a home loan EMI calculator is its accurate EMI calculations that help potential borrowers assess their EMI obligations if they borrow the desired home loan amount. The results are calculated based on the details provided, including the principal amount of the desired home loan, the current interest rate and the desired repayment term. Plus, you can continue to calculate your EMI to pay multiple times, with different combinations to give you the most favorable home loan scenario at no additional cost.

2. Handy refund guide

Borrowers are advised to use the Calculator Tool to calculate their home loan’s EMI before applying for a home loan to help them plan for their home loan repayment. By knowing your potential EMI home loan amount, you can take stock of your existing finances and decide if the amount fits your repayment budget, and tailor your home loan application accordingly.

Most home loan EMI calculators also help you by providing a provisional EMI repayment chart and a home loan amortization schedule – allowing you to have a more in-depth view of your mortgage obligation.

3. Comparative analysis

In a market with so many options for consumers, don’t rush into the first home loan offer they get. Borrowers can also use the calculator to compare lenders by calculating EMI debts for each – based on their loan terms and current home loan offers, such as interest rate.

These activities allow you to make the best choice for your financing needs and housing aspirations, given your current budget, capacity and obligations.

How to use a home loan calculator?

The most attractive attribute of a home loan calculator is its simple functionality. The tool is designed to be exceptionally explanatory and easy to use, and one can get the desired results in mere seconds. While the finer details of each calculator may differ, the details you typically provide remain the same.

Here is the basic formula from which the calculator calculates your EMI to be paid:

NDE = [P x R x (1+R) ^n] / [(1+R) ^ n-1]where

P = Principal loan amount

R = Interest rate

N = Number of monthly payments

Although the formula is seemingly simple, manual calculations are more error-prone, especially with larger numbers and complex variables. To avoid such hassles, follow the steps mentioned below to use a home loan calculator:

1. Enter the amount of your desired home loan

2. Select the duration you wish to opt for

3. Select the mortgage interest rate you want

Based on these inputs, the calculator will project the following:

1. Provisional EMI amount of your home loan

2. The interest component of your refund amount

3. The main component of your refund amount

4. Your provisional mortgage repayment schedule

With this information, you can now apply for a home loan with a better knowledge of what you have to gain and select the lender of your choice, who can offer you the most competitive conditions according to your needs and your eligibility.