4 Tips to save money on your housing loan

Buying your dream property is one of the biggest steps in your life. It’s like a sign of financial maturity and offering stability for the near future. Taking a property means chasing the preferred location & its vicinity, budget, builder authorization and finally how to finance it. Well, with private finance companies willing to offer a home loan, financing your dream is no more a herculean task.

However, when one takes the home loan there is a lot of aspects which needs careful consideration such as interest rate, processing fee, principal amount, etc. Most of us are so concerned about the monthly installment that we barely give our home loan a second thought. There are a number of important steps that can be taken to ensure that the money can be saved on your housing finance. So, here are a few tips that will help you save money on your housing loan:

Do thorough Research

Shopping around for home loans need proper market insights and help you choose the best-suited financing option. Comparing loan and negotiating with lenders can save you a lot of money. Once you know what lenders have to offer in terms of rates and fees, you can negotiate for better housing loan deal. Lower the interest rate, lesser you would be paying and more savings on your total cost you will bear.

Home Loan

Improve Credit Score

Your Credit score has a direct impact on the interest rates. Hence, it’s always important to keep improving your credit score. So, that you can negotiate with the lenders for better rate deal. When applying for home loan, ensure that you improve your credit score at least six months to one year before the application. If the credit score is low, the lender will reject your application. And if the applicant has a good credit, score he or she is considered credit-worthy and lenders place a trust on him or her.

Opt for Refinancing

Many time lenders lure with an interesting deal, which later proves to be costly on your wallet. If it's proving costly you can talk to other private lenders who are willing to reduce the interest rate for you. A good credit score, better income source, and timely repayments can put in a comfortable position for negotiating with the existing lender or switch lenders and opt for home loan refinancing. One must be aware of the costs associated with the balance transfer option.

Tax Benefits

One of the best ways to save money is redeemed tax benefits. You're entitled to tax benefits and it can help you save money as you can on the interest. For instance, under section 80C, a housing loan borrower can claim for a tax deduction of up to Rs 1.5 lakh if he or she is a salaried individual, and for self-employed, they can available up to Rs 2 lakh under section 24 (b) of the Income Tax Act, 1961. Taking a home loan is a major financial decision of life and it’s important for the borrower to check wherever possible to save money and then make an application.

Online applicants can avail interesting deals as well.

Tips to save your pockets against high-interest rates.

Home Loan lasts for a span of around two to three decades. Life may not be merrier each day, at times you might have to face steep inflation, costs cutting, job loss or recession, etc. So, it becomes important you save some bucks on your home loan. So, here are few tips that will help you save from the brunt of higher interest rates.

Negotiate with a loan officer

You would be happy to know a negotiation is a powerful tool. It helps you to bring down your interest rates to great extent. Your CIBIL report plays an important role in reducing interest rates. With a good CIBIL report, you can get some rebate on your interest rate and processing fees.

Make more down payments

Although, it’s an irony that you apply for a home loan because you don’t have ample of money to buy the home in cash, however, it would be wise if you pay more money towards down payment. That's because it will save your money on the interest component in the end. It's a good mantra to reduce your interest burden.

Keep CIBIL score clean

Many times incorrect details, late payment, bad records in CIBIL score will only lead to your home loan application rejection. So, it would be wise enough to make all your payments on time, eradicate any discrepancies in your report talking to the credit bureau, as it will get attractive interest rates and flexible ways for loan repayment.

Look for seasonal offers

In their quest to get good business, lenders often bring great home loan deals at regular intervals. So, don't forget to take advantage of these offers and avail an attractive interest rate. Home Loan is an adjustable mortgage wherein you pay low-interest rate in the initial phase, but then over the years, you bear higher interest rates. Therefore, it would be better to do proper research in terms of the interest rate applicable, principal amount, switching costs, prepayment charges, processing fee before you're willing to take any offer.

Make Partial Payment

Whenever any bank or finance company allows you to make the partial payment you can go for it. If you can make a partial payment, apart from your regular EMI, it would be helpful to reduce your loan burden in the long run. So, wherever you receive Christmas or Diwali bonus, any incentives earn, any fund maturity amount received you can divert the funds to make part payment, you will end up saving a lot on the interest component.

Take loan online

Many reputed private finance companies and banks have introduced websites that have complete details of their customized products. Right from new home loans to loan against property, loan for NRIs, home renovation loan, plot loans, you will get a detailed information about interest rates, tenure, repayment options and more. Right from the cozy corners of your home or office, you can fetch details required to apply for dream abode.

These are some of the ideal ways to help you save more, and pay the home loan faster and don't compromise on your emergency funds as well.

Need a home loan? Here is what you have to keep in mind…

Acquiring new home is one of the most auspicious moments in life. Due to falling interest rates, housing loans are now available quite cheaper. The process of online application has made the loan application, approvals and disproval quite a simple and hassle-free process.

But, you get an approval for a housing loan once lenders evaluate your credit history and check your borrowing capacity.

Here are few things to keep in mind while availing a home loan:

Interest Rate

The interest rate on housing loan is determining factor whether you should take a loan from a particular lender. Lower the rate, lesser would be the EMI outgo and more affordable it proves on your pockets. Home loans are fixed interest rates or floating rates. The fixed rates give you constant monthly installment options through the loan duration, floating rate charge with lender's economic factors, growth and changing lending practices. So, compare and weigh options before you zero in on a particular loan amount.

Check affordability

Customers should know their risk appetite and then choose a particular amount for a monthly installment that you can afford. Consider the possibilities of not getting raise very soon or due to the unexpected circumstance you can eye on loan to income ratio of 20% to 30%. This way you can at least don't develop a break in EMI payments. You can make changes in the tenure to reduce or increase monthly installment depending on your affordability

Shop around

There are hundreds of banks and private finance lenders that offer home loan at low-interest rates. But before taking a home loan, just visit online and compare the interest rates of leading players, charges structure of all available loan products. Comparison helps you to choose a loan which is not only the most reasonable interest rate but also limited fee and charge.

Take an insurance plan

Once you have taken a loan, it’s obvious you have to clear it on time. However, if anything unfortunate may happen and you might perish from the world, the liability falls on your family's shoulders in your absence. Hence, you can buy insurance cover to cover up the loan repayment costs.

Property Papers

There are a lot of fraudulent builders out there who might dupe you with fake property papers. Once the amount is transferred to the bank account they might vanish somewhere. Therefore, before you lay your hands on a property, make sure the builder is reputed and all property papers are in place. With RERA implementation, check the builder's profile online on RERA website. Lenders may often refuse to give loans if the builder is not in the approval lists.

Credit Score

One of the most important parameters, lenders adjudges loan to value is the credit score. A good credit score means you’re a responsible citizen and make all your debt payments on time. This helps you maintain good credit score and it will help you to negotiate for low-interest rate deals as well.

Follow these simple tips and apply for a suitable home loan online, now!

5 things you must do before taking a home loan.

A home loan is a huge decision. There are so many things you need to watch out for and some many tinny details you need to see too. Moreover, the fact that a housing loan is something you need to deal with for long periods of time, sometimes up to 30 years, it’s essential you make all the right choices or else you might be staring down the barrel of prolonged financial turbulence.

Thankfully, if you keep a few parameters in mind and do a good amount of research and planning before going into the decision, chances are you’ll have a smooth housing finance journey.

To help you with your preparation, this article will highlight 5 things you must do before opting to borrow funds to finance your homeownership plans.

1. Compare funding options.
The first thing you should do when considering a home loan is a shop for options. Check out the funding packages on offer, the interest rates, the extent of funding on offer, the tenures, the charges, etc. You shouldn’t look for the least interest rate or the highest funding, instead, you should look for a finance option that offers to meet your needs and requirements better.

2. Use home loan calculators.
Calculations and financial planning is the framework for a strong repayment structure. Therefore it’s essential that you get the math right and create concrete budgets way before you even apply for the loan.

You can use an EMI calculator to find out the kind of monthly payments you’ll have to deal with, the loan amount you can afford, etc. You can use an eligibility calculator to find out just how much a lender is likely to provide you with a loan amount and repayment calculator to chalk-out thorough repayment plans.

3. Read reviews.
The experiences of others will provide you with valuable insights into the workings and service quality of a lender. They will tell you, roughly, what to expect when you borrow from a certain financial institute or bank. Therefore, it’s essential to read-up and sees just how a lender treats its customers as you might soon be one.

4. Speak to a financial expert.
This is vital, they’ll tell you what kind of home loan you should opt for keeping in mind your current financial state. You can learn how to save money through the tax benefits of a housing loan. They’ll even guide you as to which type of interest rate, fixed or floating, suits you better. You can have them go through the terms and conditions of your loan offering to highlight any points you should be worried about or approach the lender for clarification.

5. Prepare yourself.
Get a good down payment ready, work on your credit score if it’s poor, find out all the documents needed and ensure that you are fully prepared to take on debt. Because, like they say, what starts well, ends well!

We hope this article will help you and your home loan decisions, good luck and all the best!

Want to know your monthly installment? Check the details on home loan EMI Calculators.

With leading banks and private finance companies reducing the interest rates home loans are quite affordable for most individuals who plan to buy a house. They are available with lower interest rates that range between 8.50 to 9.50% with a nominal processing fee of around 1-2% on your principal amount. Therefore, more and more Indians are eye-upon the exciting deals and purchasing or constructing their own abode.

Home loans are by any chance better option compared to traditional finances and personal loans. They offer flexibility in interest rates, tenure, repayment modes. However, since this loan has a huge amount often it becomes tedious to calculate the eligible amount, what would be your EMI, the processing fee, etc. The manual calculation seems to be an exhaustive job. To ease the process and understand loans in a simpler way most companies and banks have introduced home loan EMI calculators on their website that will give an exact overview of how your loan will look like.

Home loan EMI calculator enables you to understand the monthly amount you have to pay to the lending institute on a specific date of every month. EMI stands for an equated monthly installment that you have to pay every month to the lenders. When you visit the calculator page of any website you are rest assured that your couple of question would be addressed quite easily such as: What would be your monthly EMI for your housing loan, how much an individual can afford to borrow as per his or her risk appetite, how much they are eligible for, what is the maximum repayment tenure, what would be the interest rate and processing fee.

Home loan EMI calculators are available on the company's website and you can avail the service for free. You can visit the page and simply enter the amount you wish to avail towards the home loan, the interest rates you can afford to pay and tenure for you which you will need to make repayments. You will get a complete table array that will display your exact principal, interest rate applied and your monthly installment payment. You can set the start date of your monthly payment schedule.

Home loan EMI calculator gives you an insight into the future where you can afford to make complete EMI payments of the loan or not. It gives you can estimate value you have to save every month. It helps you stay prepared for future payments. Earlier you had to sit with financial experts and make bills of income expenditure and then calculate emi which would have a chance of manual errors. One slight mistake would barge the whole EMI calculation. Besides, the process was very much tedious and time-consuming.

But Home loan EMI Calculator is helping to ease the pain and confusions. All you have to do is insert the values correctly and save a lot of time. They give you complete insight into the EMIs you have to pay and you can plan your month finances accordingly. So, no more confusion and tension of EMI just visit calculator page and get easy options for home loan installment calculations, now!

Repay your home loan quickly in few steps.

Buying a home in this skyrocketing property prices is easy and exhaustive, now you must be thinking how an easy thing would be exhaustive, right? Let’s explain you this in details, in this article. Purchasing a home is easy in this market of expensive property prices owing to the various home loans available for the potential buyers. It is exhaustive because of the long repayment tenure. Though the long home loan tenures help you get affordable EMIs but it can raise the interest cost you pay on the loan. So home buying can be easy and hassle free if you plan the venture beforehand and squirrel away some amount of money from the beginning of your career.

If you have a good credit score, impressive bank statement and good financial profile; then you can expect your home loan to get disbursed within a week or two once the required documents are scrutinized & verified. With the aforesaid factors you can expect to get maximum of 70-90% of the property value, depending on the price slab. They can also help you to get affordable interest rates, which are nearer to the lowest rate the concerned lender is offering.

Once your home loan is approved, the exhaustive phase of the venture starts.It is the debt repayment phase, because it absorbs almost 20-30 years, depending on the type of loan you have taken. Experts advise borrowers to repay the loan amount sooner to avoid unnecessary increase in the interest cost. There are certain steps, which can help the borrower to repay the housing loan sooner, like:

• Avoid taking any other loans while you are in the home loan debt phase. Analyze the outlets of hemorrhage money, cut short the unnecessary expenses and try to save maximum amount, so that you can repay your loan before the tenure.
• Replace the unnecessary expenses with necessity. It’s is better to save now and repay the debt, than spend now and end up paying the extra interest cost for the long tenure.
• As soon as there is salary hike or increase in the monthly incomes, don’t forget to increase the EMI cost, this can speed up your debt repayment by reducing the number of installments.
• Save the extra EMI cost, in case the interest rates come down in case of the adjustable rate of interest.
• Invest in life insurance policies, stocks & bonds early, so that it can give you high maturity amount after certain period that can help you to repay the loan amount.

The above mentioned few points can help you repay the housing loan quickly. Before taking the loan make sure that your lender doesn’t penalize your repayment with certain percentage on the balance money after the fixed lock in period.

Though getting an affordable loan for purchasing a home is not a difficult tax anymore, but debt is a debt. It is better to pay off the loan sooner, without hampering your existing financial commitments towards your family’s health and children’s education. After considering your affordability and other essentials like job profile and future, go for the prepayment of the loan for your home.

Know how your credit score can craft your best home loan.

In some cases best is not what others say, sometimes it’s you who can decide the best for yourself. Similarly in case of home loans, there are numerous financers sprawled in the market who declares themselves to be the best, but it may not fit in your wallet or may not serve your purpose. So before you take a home loan for purchasing your own abode just craft it to be your best home loan. To get the best financer and utilize the facility you need to be a responsible borrower, if you are not then make yourself the one. A loan term can only be hassle-free if you are a responsible and well-versed borrower, who knows his responsibility and the nitty gritties of his debt.

Did you know that your habit of expenditure can affect your home loan eligibility? If you are spendthrift then forget about best home loan, chances of getting a home loan also minimizes. If you have a credit score in between the range of 350-700 then it’s unacceptable for home loan, though some financers may give a second thought to your application. If your score is nearer to 900 then the financers have faith in you as a borrowerand chances are there you may get 80-90% of the property amount, decreasing your margin money requirement. As a borrower for you the maximum amount of property value as loan amount makes it a best home loan, so indirectly you make your loan good or best.

Lesser credit score may get you a home loan, but interest rate on the loan amount may be higher compared to those borrowers who have an excellent credit score. Those borrowers may enjoy the competitive interest rate and faster loan process. Again lower interest rate makes your home loan the best; ultimately your credit score decides the fate and nature of your loan.

The monetary value of the house you chose to invest is a matter of lump sum amount. It is beyond the reach of a normal salaried or self-employed person in this era of skyrocketing property prices to make the whole payment and own the keys. Home loans are the most preferred mode of finance. As a borrower when you take the loan, you need quality amount of time in repaying the loan amount along with the interest. Those magical figures in your credit score card can work wonder for you, by winning you a maximum of 30 years of loan tenure.

If you are planning for getting a home loan, then pull the reigns of your unnecessary expenditure. The credit card that you took to enjoy your age can be a helping hand or may be a trap to pull down your credit score. If you own one, here is a tip never spend more than 50% of the credit limit and pay the credit card bills in time. By improving your expenditure habits you can improve the bank statement, which will help you to get the best loan suitable for your purpose. Nurture the savings habit for your own good.

After all the hard-work you deserve your own home

Home is a place where you bask in the affection and care of your family members, basking under one’s own roof can give unparalleled sense of accomplishment and security. When the property prices are increasing like the speed of a new SUV car, buying a home all by ourselves is not a cup of tea for the middle class strata of the society, which is the majority count. But home is something that is not only for your comfort, it is a necessity. After working so hard; every individual deserves to own a home for their family. The government and bank policies are making every conscious effort to help the common men to get their home with a home loan.

Every individual is unique, similarly the requirement of each borrower is different; to cater to different need financers are providing different home loan. You can get a home loan for buying a ready flat, resale property, under-construction property, a plot of land or to build a concrete structure on a plot of land and to extend or renovate an existing property. Your savings habit from the very beginning of your career can get you a good credit score to get a suitable loan. Another benefit you get by saving early is that you can save lump sum amount for your down-payment. Both these factors can not only help in your loan process but it will also help you to get a fair rate of interest and maximum loan amount according to the loan amount slab.\

Home loan are creating revolution in this age of zooming property price. Most of the salaried or self-employed people prefer home loan for funds to purchase their home. Why should they not? Because they can avail several of benefits like:

• Get lump sum amount of money to buy their selected property.
• With the lowest interest rate in the history of home loan, the interest cost has reduced.
• They get loan tenure of maximum of 30years to repay their debt.
• Get a tax benefit on the paid interest.

When you are getting the scope to buy your property by repaying your EMIs in time, then it’s wise to go for a loan while enjoying the benefits. The EMIs can easily adjust with your monthly budget, which is bit more than the monthly house rent you pay.

Before getting the home loan select your financer diligently after doing in depth online research and visit at least two to three financers, that are established and RBI authorized. Then compare the interest rates, processing and other charges, loan tenure, loan amount disbursement timing and debt repayment options.

If you consider few things, then you can ease off the debt burden, try to cut short the interest cost by paying maximum margin money, lessen the loan tenure and to some extent the rate of interest also plays a role, take the adjustable rate which is lower than the fixed rate. A tip for the potential borrower is that only go for adjustable rates if you can afford the rates when it increases depending on the market health.

EMI Calculator: the user friendly budgeting tool.

Home loans have made it easier for all the people from every strata of the society to own a home according to their financial profile. The people with a fixed source of income keep the home buying wish in the back burner owing to ever rising property prices. Earlierthey used to guesstimate the home buying expenses and kept on postponing the plan. Nowadays the lower home loan interest rates are encouraging the potential homebuyers to invest in the immovable properties. But some fence sitter possible borrowers are still waiting for the rates to come down, this happens when you cannot craft your budget accordingly. The online EMI Calculator in the financers’ websites and the aggregator sites can help you in crafting your debt repayment according to your affordability and financial profile.

When you plan to purchase a home you must ask yourself one thing; “are you loan ready?” if the answer is ‘yes’ then confirm the basics of a home loan. Some basic features are:

• You must have a good credit score.
• Maximum amount to pay the down payment.
• A stable job and monthly source of income to complete the tenure without being a defaulter.
• Keep in mind that the EMIs may absorb 30-40% of your monthly income, prepare yourself in such a way that your other financial commitments should not suffer for your loan term.

Getting a home loan is not a difficult task owing to numerous financers available in the market and the easy RBI & government policies, which are crafted for the borrowers’ convenience. But the loan repayment tenure can be exhaustive in case your monthly budgets are not set according to your EMI. To set the budget you need to calculate the EMI accurately but the manual calculations are generally confusing task, as a result chances of some loophole remains. To help the borrowers and help them in setting the budget, the financers are providing online EMI Calculator in their webpage. It is a tool to make the EMI calculations easier for the potential borrower.

You have to enter three figures in the given calculator, for calculating your EMI: the balance loan amount, interest rate and the loan term/number of installments. When you use the EMI Calculator you get few benefits like:

• The mind boggling calculations are done within a wink.
• The EMI values you get are accurate, depending on the inputs you feed in.
• Before hand EMI calculations help to craft your monthly budget accordingly.
• You can try different combinations of loan amount, tenure and interest rates, which would have been a difficult task in case of manual calculations.
• You get an amortized table for your remaining EMIs.

Home loan is a matter of lump sum amount, if it is planned and crafted accordingly then you can minimize the interest cost. For example if you take the loan for short tenure, though you have to pay high EMIs but the interest cost is reduced. Similarly if you take loan for lesser amount by paying maximum amount as down payment then the interest cost is reduced. With the help of EMI Calculator your term hassle-free.

Things to consider before taking the loan.

Use the interactive Home Loan EMI Calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

It’s a good idea to use EMI Calculator before taking the loan.

Hey there budget friendly person! Here is an online tool to help you calculate your monthly expenditure in EMIs before you get your home loan. Now you must be thinking that why should you calculate, when the financer will provide you the figures of monthly EMIs? The answer is that your calculations beforehand will help you to check your affordability to carry forward your debt repayment without being a defaulter. You can plan your savings accordingly. Just visit the online sites of the financers and use it for once, then you can understand it clearly. Before taking the home loan the three factors you emphasis are the principal loan amount you would get, the rate of interest you have to pay and your loan term. You require these three factors mentioned to calculate you EMI the equated monthly installments.

Previously people used to do the head scratching calculations manually spending hours in doing those mind boggling equations unless you are a matheux. To make it easier for you financers are providing online EMI Calculator, to make easy calculations for the EMI. As a monthly EMI can absorb almost 30-40% of your monthly expenditure, it’s better to check your financial profile before plunging into the home loan venture. Because a single skip of EMI owing to shortage of funds can pull down your credit score affecting your loan profile for future processing.

Home loan is about a lump sum amount, so its better get financial stability and prepare skillfully to have hassle-free debt tenure from your side. It’s your responsibility as a borrower to pay your EMI in time, despite your financial attention for other responsibilities. This needs proper planning and execution, now don’t worry about all these heavy terms of debt & EMI. Though financers earn profit by giving you a loan, but they even take every possible step to ease off your debt burden. The EMI Calculator tool is one such proof. After calculating the EMI you may take the loan or not, so financer is not forcing you to take the loan, but guiding you to make a proper decision.

This tool is helpful because of the reducing balance amount with each installment, in case of adjustable rate the fluctuations can be calculated efficiently and the reducing loan term; that effects the EMI calculations.

The tool is for your own benefit; just have the figures with you: the principal amount you are planning to take after paying your down-payment, type of interest rate you prefer and the loan tenure up to which you want to stretch your debt. Once these three figures are with you, just input the values in the tool and get your calculated EMI within split of seconds. It helps you to get the amortized chart for the whole tenure by sitting in your home.

Getting a loan is easy, but carrying the repayment term smoothly with monthly EMIs is exhaustive, it’s better to plan, prepare yourself financially & mentally and then join the home loan bandwagon. The above mentioned tool is of great help for the borrowers. It helps to plan your savings to reduce your loan term and prepay the debt at possibly short span reducing interest cost. Though the calculations are accurate but it’s better to cross-check with the financers to be in the safe-side.

Know your emi before you pay.

Use the interactive Home Loan EMI Calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

Role of the financer in home loan.

The home loan interest rates are lowest in the history nowadays; before you get inspired with these luring rates and join the bandwagon keep in mindthat interest rate is a part of the loan. There are several other charges and elements associated with this loan. Most of the borrowers hung up with

The interest rates when comparing different financers. Taking this train of thought further down the track, there are processing fees and other charges that will give you an idea of the overall loan charges. Though, interest amount holds the second chunk of your loan after the principal amount but other charges are also important.

Let us understand rest of the charges other than interest rate in home loan.

Processing fee: Ranging from.5-2.5% of the principal amount, it is a significant cost in addition to the loan interest payment. Though it is onetime payment but it is not refundable. By any chance if your loan is rejected you will lose the processing amount.

Prepayment charges: these charges are applicable in case of fixed rate of interest. As a penalty for fore closure you pay extra amount than the balance EMI amount.

Administrative charges: this is also one time charge depending on the loan amount. It is also not refundable.

Swap charges: these charges are levied in case of switching the loan account from the existing account.

Late payment charges: in case the borrower misses the due date, the lending institute punches a penalty of 2-4% on the overdue amount.

Miscellaneous charges: documentation, stamp duty and other charges come under this charge.

These are the extra charges you have to pay along with the loan & interest amount. Though most of them are paid once, but is not that low to be overlooked. A good financer will keep each and every transaction transparent.

The financial organization you sign for your home loan has a great role in your life. So choose the financer diligently, a good financer will offer quick loan disbursement, competitive rate of interest, transparency in the charges levied and most important is the flexible repayment options to ease the debt burden.

You have to prepare yourself properly to prove yourself a worthy borrower with good credit score, a stable income to pay the EMI on time. The road of loan tenure can be hassle-free only with the mutual understanding of the financer and the borrower. If the financer is disbursing the loan amount in time, then it’s the borrower’s priority to repay the EMI in time.

Getting a home loan is not a hard task, but to commence the debt journey is exhausting. Expert advices the borrowers to limit the loan amount as much as possible. That doesn’t mean they have to compromise with their dream. Prepare yourself and take the decision only after evaluating your affordability to complete the loan tenure without being a defaulter. Don’t jump into the bandwagon without proper safety measures. Here your safety measure is good amount of money for down payment to reduce the loan principal, a good credit score to win the financers’ confidence and capability of repaying the EMI regularly along with saving amount for freeing yourself from debt.

Things to know about home loan EMI Calculators.

A home loan is a good decision, but it’s also a decision that needs to be backed by a good amount of foresight. Before applying for a home, you should know the amount you can afford, the ideal tenure and the EMI your income can sustain. Previously, you would either use all your mental capabilities or rely on tedious excel formulae to help you out. However, times have changed and you can now carry out these calculations in a matter of seconds, without the need of mentally racking your mind. Wondering how? It’s simple, just use an EMI Calculator.

These calculators are electronically engineered tools that help you calculate the EMI of your home loan. Simply key-in all the factors such as the amount you need to borrow, the interest rate you are comfortable paying, the tenure that suits your requirements and hit enter. The calculator will immediately provide you an EMI amount as per the variables you’ve input.

Knowing the EMI can provide you a host of benefits. Firstly, it helps you decide if your income can support a home loan right now. If your income can support the EMI amount, you will know how much to set aside each month and thus plan your repayment before even applying for the loan. It allows you to adjust your expenses so as to make room for your EMI repayment. Once you know the loan amount you can afford, the chances of your home loan are also improved. This is because the lender sees that you are borrowing within your means and hence the chances of you defaulting are less. Knowing the amount you can afford also helps you arrive at the down payment you will be required to pay. You can then keep this amount ready, which will again increase the chances of your loan being approved.

Most leading lenders will have EMI Calculator on their website. All you have to do is log on, type in the values as mentioned before and hit enter. The calculator will do the rest and present the EMI amount in a matter of seconds. You can also go to home loan aggregator sites for an independent calculation. Some sites will even give you a detailed breakup of your entire loan repayment schedule with the opening and closing balance after payment, the breakup between interest repayment and principal amount repayment. Further, some calculators even take into consideration the processing fee you are comfortable paying to provide all the more accurate calculations.

Using an EMI Calculator helps eliminate financial turbulence caused by a home loan. They allow you to systematically plan for your home loan. It ensures you don’t borrow passed your capabilities and safeguard you financial setbacks of a home loan. If you’re looking for a smooth home loan journey, it is a must use tool. Using this tool will ensure both your heart and mind are at peace during the entire tenure of the loan.

Importance of credit score in home loan.

The home loan which you are thinking of taking to purchase the house you cherish is sanctioned only after you fulfill certain basic criteria. It is the combination of few factors like your monthly income, affordability of repaying the loan amount in time and the credit score of the borrower. In this article we will discuss the importance of credit score in getting a loan for buying your dream house. It is one of the important factors that determine your eligibility in getting the loan and also the interest rate at which the loan will be sanctioned. The credit score is basically a certificate for the behavior of the customer as a borrower.

When a borrower is applying for a home loan and wants to avoid the prospect of loan rejection, he/she should understand the role of credit score in getting the loan sanctioned. If you have gone through an ad where the financers jumps to the customer with a credit score of 750 and you wondered what is it and how it will help you to get the best home loan then you will get your answer here. A good credit score for getting the loan is 700+, closer the score towards 900 more is the chance of getting a suitable loan. With higher score the customer can avail various attractive offers like: lower interest rates, maximum loan amount, easy documentation and longer loan tenures.

The very first thing the lender notices in your loan application is the credit score. There is a good chance of rejection of the application with low credit score. But an application with good credit score attracts the attention of the lender and proceeds further to check the credit worthiness of the customer before sanctioning the loan application.

Potential customers with low credit score can improve their score with the following steps:

• Avoid late and missed payments.
• Balance between secured and unsecured loans should be maintained.
• Check the score on regular basis keeping an eye on the credit report.
• Don’t take too many loans at the same time.
• Try to spend less or maximum of 50% of your credit limit.

Checking the unplanned expenditure can help you to improve the credit score. The low credit score customers are considered to be high risk borrowers with the history of being a defaulter, the lenders may not entertain the loan application. High credit score testifies your responsibility as a borrower with low probability of being a defaulter this will help the application to win the confidence of the lender.

If you are planning for a home loan and want to improve your credit score, then take the help of a professional credit management company, who will guide you to build a required credit profile and make you loan eligible. A good credit profile now can help a hassle free access to the credit score in future.

Before applying for the loan amount to purchase the home you want, as a borrower makes yourself worthy enough with stable job, affordability for paying the monthly EMIs and a good credit score. Clear all existing debts before plunging into the greatest loan venture. This loan tenure is enough to absorb 30-40% of your monthly expenditure. So if you wish to achieve the greatest accomplishment of your life then don’t let a single stone unturned to have a hassle-free loan term.

Home Loan For Your Dream House.

Use the interactive Home Loan EMI Calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

Know your EMI before you pay

At the age of thirty my friend was planning to buy a home, after getting his second promotion. His father suggested that it would be a good investment, because he is young enough to take a home loan and complete the loan tenure in time. Since, he had no experience of any kind of loan like education loan or any kind of personal loans so he was bit confused. He decided to do some online research work before jumping into the bandwagon of home loan customers. After combing through the aggregator sites he found that different financers offered different interest rates, some as low as 8.40%-11%. The loan term and the company terms and conditions also varied. Some promises from some financers seemed too good to be kept.

Amongst the various financers he chose few established institutes, as he was smart enough to understand that enticing figures would not be beneficial. After understanding the whole process the next factor he was concerned about was the EMI repayment. Because it would count almost 30-40% of his monthly expenditure, and a beforehand monthly figure of the EMI would be of great help. The solution to his concern was present in the official website of the financer- the EMI Calculator. It is an online calculator that would give the approximate value of the monthly EMI after entering the principal loan amount, annual rate of interest and the number of monthly installments.

He was very happy with the benefits of the EMI Calculator like:

• It gave the exact value of the EMI he has to pay against the principal loan amount. Unlike the traditional method of the physical calculations there is no chance of errors unless you enter a wrong value.
• With three simple inputs of the principal, interest and tenure you get the accurate calculated monthly EMI.
• The whole calculation is done within split of seconds.
• It’s a comprehensive tool, where you can try different combinations to find the best suitable value.
• This brilliant handy tool is a free online service.

This tool with the aforesaid benefits helped my buddy to choose the best suitable financer with a perfect home loan for his greatest personal accomplishment. He calculated his EMI with the online EMI Calculator and tailored his loan structure accordingly. Before he used this tool he was thinking of taking a maximum amount of loan by minimizing his down payment amount. But after using the calculator, he cut the loan amount and increased the down payment value fortunately; this helped him to cut short his interest cost.

The calculator provides an amortization table that gives a clear financial and chronological idea of the loan repayment structure. It is the debt repayment schedule for the entire loan term.

He was thinking of increasing his loan tenure owing to lower EMI cost, after calculating the interest cost for the maximum loan term he found that, though the EMI was low but the interest cost that he has to pay was much more than shorter loan term.

This home loan EMI Calculator proved to be a great friend in need. It guided my friend to set up his monthly budget accordingly gifting him hassle-free loan tenure. So as an existing home loan customer he suggests each potential borrower to use this tool beforehand for their own benefit without waiting for the financer’s declaration of the monthly EMI. You know your EMI beforehand yourself.

Eligibility for a home loan.

Use the interactive Home Loan EMI Calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

Things you need to know before you pay your EMI.

EMI stands for equated monthly installment. It is the amount of money a borrower needs to pay the funding organization for repaying the loan money. The EMI amount includes the repayment of the principal amount and the interest on the outstanding amount in installment. Longer term of loan tenure can reduce the EMI amount. A clear prior knowledge of the amount of repayment can help the borrower to take an informed decision. As the rate of interest fluctuates with the financial health of the market, beforehand knowledge has become mandatory. In order to get the approximate value one can use the EMI Calculator to calculate their EMI cost.

Calculating the EMI manually for the vast amount of loan is often hectic and error-prone. The mind gets screwed with the confusing balance money that changes with every EMI payment. The EMI Calculator gives a clear understanding of the principal amount to the interest due ratio, based on the home loan tenure and the interest rate. In the era of e-commerce, when you can avail most of the facility in just a click, calculating the home loan EMI is no longer a mind boggling job that leads the borrower into a financial mess. The borrower is advised to have a proper planning before he/she chooses the property of interest, they should know the amount he or she is capable to pay as down payment and the EMI charges that pinches less. After doing some online research the borrower should approach the financial institute.

The loan journey is often long and exhausting, so it is good to prepare oneself for the debt free destination. The EMI Calculator is the like a lever that helps you to adjust according to the requirement, like; when the interest rate comes down, one can calculate their EMI and save the remaining money for the future, when the interest may rise. A penny saved is a penny earned. The home loan EMI calculator will give an approximate figure for the total monthly installments along with a complete break-up of the home loan repayment process. One can get access to the amortization table to strategize the repayment schedule in advance.

The borrower has to feed in the principal amount, the loan term, and the interest rate in the EMI Calculator to get the EMI, the borrower has to pay. The financial organization merges all the services under the online umbrella to reach maximum amount of potential customers and offer them a hassle-free loan term for their dream home.

The rate of interest at which the financial organizations give home loans is less compared to the education loan and other personal loans; this often misguides the borrower to take a lump sum amount of loan that ends in digging a big hole in their pocket. It is advisable to have a thorough knowledge about the loan procedure and EMI repayment, so that he can reduce the loan amount and save themselves from being drawn by the debt. Before applying for the loan the borrower will have clear knowledge of the approximate EMI he has to pay with the home loan calculator which is superior to the traditional calculators and manual calculations. Use the feature rich home loan EMI calculator to estimate the EMI amount and have an error free calculation.

Why Should You Calculate the EMI before Taking a Home Loan?

Deciding the amount of the loan depends on the affordability of the emi.  Every financial institution will first check how Much Emi An applicant can afford paying and on the basis of the amount of the loan is decided and the home loan is sanctioned.  Thus it is recommendable that the applicant should also check the emi he will have to pay to the bank every month using the home loan Emi calculator.  This will not only help him in checking the Emi That Is payable but also he can check the amount he is eligible for.

Aspects that affect the Emi

Mentioned below are the three main factors that help in deciding what can be the Emi on the loan. 

Income:

Income plays an important role depending on the income the lending institutions render loan to an individual. The emi amount should not be less than 40% of the monthly income of the individual.  This is to make sure that the loan applicant has enough money to meet his expenses. Even though an individual is optimistic about the rise in the income he should also take into consideration factors like the inflation rate, job security and the emergency requirements. The emi should not exceed 40 % of your income. An individual should have at least 15% in his hand to save and use for other purposes.

Changes in the rate of interest:

When you calculate the emi using the home loan emi calculator the interest rate plays an important role.  Though low home loan interest rate might attract you to avail for a huge home loan amount it is not advisable to do so as an individual needs to have some money to be used for emergency purposes.  Also the choice between the fixed and the floating interest rate will help you in saving and you can save on the Emi. If you opt for floating interest rate the percentage of the interest will depend on the market fluctuations and thus the interest paid is generally low.  But for fixed interest rate the interest rate remains fixed throughout the repayment tenure of the loan.  Generally if a person wants to cut down not the interest rate he can opt for floating interest rate.

Expenses related:

 While an individual decides to jot down the expenses it is very important that he needs to calculate the emi using the home loan EMI calculator along with this he can also calculate the monthly expenses that occur for him during a particular month. This will help in planning the month without creating any financial burden on him. Thus, he can make sure that he has enough necessities while he dreams to own a house.

Why is necessary calculate the EMI?

Calculating the emi with the help of the home loan EMI calculator helps in determining the loan amount which is to be borrowed. It is essential to calculate the tenure of the loan to check the affordability of the loan.  It is also necessary to compare the pick the best home loan offered lending institutions which has additional benefits like the lower home loan interest rates

The home loan emi calculator is different from the other types of loans. Thus when an individual is planning to apply for a home loan he needs to decide and make use of these online home loan emi calculator to avoid the further confusion. Earlier the emi was calculated manually which has manual errors. But now a person can simply visit the website and calculate the emi he needs to pay for the next 18 years.