Online EMI Calculator For Home Loan – How To Use It To Your Advantage?

For most borrowers, an EMI calculator is just an online tool for home loan EMI calculations. However, it is also a smart support system for quite a few home loan calculations. Well designed home loan calculators are well equipped to do more than just calculate your monthly loan EMIs. Here are a few ways in which you can benefit from this tool.

Identify your home loan

What is the minimum amount that you want to spend as the value of your property? What is the maximum one that you can afford in your present financial circumstances? You can take the help of a home loan EMI calculator to figure that out. Let’s say, based on the amount you can repay every month, the principal amount is Rs. 50, 00,000. Then, you can reverse calculate the value of your potential property by deducting the processing charges, stamp duty etc., and adding the down payment that you will need to arrange.

Discover the interest rates range

How much interest rate can you pay in today’s date? When there are three factors that can affect your EMIs, you can check your interest rate range with these calculations. You can calculate the minimum and maximum interest rates that you can afford by running several calculations through the home loan EMI calculators in India . They are designed to support your understanding of interest rates and tenure for the loan.

Fine-tune the home loan tenure

If you make enough calculations on a housing loan EMI calculator, these will help to demonstrate the pattern where, if the principal amount and interest rate doesn’t change drastically, your home loan tenure will affect how much interest you will pay. A long tenure, which most people prefer, repays too much amount in terms of interest to cover the duration, while shorter tenure repays a lesser interest. Ideally, the right strategy is to choose a tenure that you are comfortable with as you will need to be financially disciplined for the chosen number of years. So, be smart and choose the right tenure, which maintains the balance or the right EMIs for today with the total amount of interest paid. You can arrive at the suitable number with the help of a perfect home loan calculator .

If you are entering realistic numbers, which cannot be guaranteed for the first timers, then you obtain a manageable and a practical understanding of your property, interest rates and tenure. You can get these details in place with the right amount of research, which can improve your chances of getting a home loan approval substantially.