A home loan is a long-term financial commitment; therefore, potential borrowers must conduct thorough financial planning prior to opting for a loan. In such a case, using a house loan calculator can be one of the best ways to plan finances better and ensure hassle-free repayment.
Below is a detailed idea about housing loan calculators for prospective borrowers.
What is a housing loan calculator?
As the name suggests, a house loan calculator is a handy online tool that helps to determine home loan EMIs, interest payable and other details of a home loan. This tool helps one to make an informed decision. Most financial institutions offer this free tool on their official websites to help better home loan estimations for their borrowers. The housing loan EMI calculator displays a complete break up of how much the borrower will need to pay towards interest payment, how much the EMI outflow would be and other details.
How to use a house loan calculator?
Manual calculations of home loan EMI is complicated and are prone to errors. By using a house loan calculator one can get a clear idea of the loan affordability that will make way for better financial management.
Prospective borrowers can easily use this housing loan EMI calculator by entering only three inputs. Here are the steps one can follow to use this financial tool:
- Visit the official website of a lender
- Navigate to the home loan EMI calculator’s page
- Select the required rate of interest, tenor, and loan amount.
After entering these details in their respective section, the online house loan calculator will display the monthly instalments in no time.
However, borrowers can alter the figures of tenor and loan amounts depending on their requirements. These changes and adjustments can be done as many times as one wants.
What are the benefits of using a calculator for a home loan?
Mentioned below are the advantages of using an EMI calculator for a home loan that every borrower must know:
- Easy calculations and accurate results
Manual calculations often leave room for mistakes. But relying on a housing loan calculator can help to obtain error-free estimations easily.
To get the precise calculation on their monthly instalments, borrowers only need to enter repayment tenor, housing loan interest rate, and loan amount in the online EMI calculator.
The primary advantage of using this online tool is its unparalleled convenience and seamless user experience. A borrower can use this calculator for numerous amounts of time without any log in with credentials or formalities.
- Aids in planning repayment
While using this calculator, a borrower can alter the tenor accordingly to find an EMI they are comfortable paying. This helps in planning out a repayment better and also minimises the chances of being a loan defaulter.
Through such financial planning, one can easily monitor and manage their relevant fixed expenses, ensuring the EMIs are paid on time.
- Supports in deciding the loan amount
Before applying for home loan, it is crucial to calculate EMIs as it significantly assists in deciding the loan amount that one needs. This can be done by using the house loan calculator, available on the official website of one’s preferred lender institutions.
During the process, borrowers can easily tweak and adjust values to find most affordable loan terms. Lastly, by exploring different EMI options based on the interest payable or tenor, borrowers will be in a better position to determine the exact loan amount that they require.
- Helps borrowers to plan prepayments
Through prepayments, borrowers can effectively reduce their home loan tenor and EMI. As a result, borrowers could easily reduce their interest payments and complete the repayment of the entire loan amount before time. This can help in getting higher credit score.
- Lender comparisons
A house loan calculator also allows for assessing the loan offers from various lenders available in the market. One should conduct a thorough research and then choose a suitable lender.
Moreover, the majority of financial institutions extend personalised pre-approved offers for their existing customers.
Through these offers, borrowers can get streamlined and hassle-free loan application. Such offers are applicable to different financial products such as loans against property, etc. Individuals can check their pre-approved offers by submitting the essential details like names and contact numbers.
A house loan calculator is an essential tools that can be used for proper home loan management. In addition, with the help of home loan eligibility calculator, one can also check their eligibility for a loan and then make necessary decisions accordingly.