Choose the Right EMI withthe Home Loan Calculator

If you need a home loan to buy your dream home, then every financial decision comes down to your home loan EMI. That’s why; EMI calculator for home loan is a very important tool. Several elements are a part of home loan EMI calculations. They all influence housing loan EMI. So, you can use a simple EMI calculator, which replicates a basic arithmetic calculator. You can also use an advanced housing loan EMI calculator to explore all impact of different housing loan elements. But, undertake these home loan calculations to make a right choice.

Determine the basic home loan elements

When you want a home loan, you need to know three basic housing loan elements as clearly as possible.

* Principal amount: This is not equivalent to a cost of the property, after deducting the down payment of 15 to 20%. You will need to add other expenses, which can affect the final number considerably. You will need to add processing charges, serve fees and taxes, stamp duty, legal fees and more. Several first-time borrowers cannot estimate this number accurately. However, you can consult with a personal finance expert or talk to your relationship manager.

* Home loan tenure: Do you need most of the funds for your dream home? Would you need some percent of the requisite funds? Based on the amount available and pending working years, you will need to select the home loan tenure. Home loan tenure can vary anywhere from 15 to 30 years. But, an individual choice depends upon EMI. This is the reason most people use an EMI calculator for home loan. Calculating your monthly home loan EMI is not an entertaining activity. You want to repay your home loan as early as possible. But, it has to be financially feasible too.

* Home loan interest rate: This is the most unpredictable element. Most people want the lowest interest rate. But, few can actually qualify for it. So, you need a realistic estimate of interest rate based on your home loan eligibility. That’s why; you need a housing loan EMI calculator. Even a decimal point change in your interest rate can change your monthly EMI significantly. So, undertaking pragmatic home loan EMI calculations is not easy. You will need a right balance of commonly available interest rate and affordable one.

Consider your alternatives:

Home loan EMI can change based on complex home loan elements such as home loan rate and repayment options too. Take a closer look at their impact on EMI with housing loan EMI calculators. You will need specific EMI calculators to calculate their impact since it is not a part of common housing loan EMI calculators.

Choosing right EMI may not be easy. But, EMI calculators for home loan do simplify the job for you. So, choose an affordable one.