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.

How an EMI calculator can help you plan your future.

Before we get into what this calculator is, let’s understand what an EMI is. EMI stands for Equated Monthly Installment. It’s the amount you need to pay every month in order to pay back the loan amount. Your EMI includes the repayment of the principal amount and the interest payment on your home loans outstanding amount.

Getting back to the topic, they say success doesn’t just happen, it needs to be planned. This couldn’t be truer when it comes to planning a successful home loan strategy. Because getting a home loan is more than just filling out the paper work & applications properly. Rather, to ensure you have a smooth home loan journey, a certain amount of foresight is essential. An EMI Calculator can go a long way in providing you the necessary foresight required to plan every step of your home loan journey and this article will help you understand what it is, the benefits of using one and how it works.

An EMI Calculator is a tool that helps you arrive at an EMI you can expect to pay for a specific loan amount and tenure. Arriving at an accurate EMI amount will help you plan your repayment strategy over the tenure of your loan that could be 10, 15 or even 20 years. This could save you from a whole a lot of financial turbulence and help you smoothen out every wrinkle in your home loan planning.

When you use such a calculator, you get three major benefits. Firstly it helps you plan finances by enabling you to decide the amount of EMI you can pay every month without straining your financial wellbeing. A calculator also helps you arrive at an amount you can afford to borrow. This will help you apply for the right loan amount and in turn increase your chances of approval. Using a calculator also helps you arrive at the down payment you will require and help plan your overall home buying budget.

How does it work? It’s actually very simple. Just enter the tentative loan amount you require, the interest rate you are comfortable paying, and the tenure you wish to take loan for. Once you’ve got all these numbers filled in, the calculator will tell you the EMI you would have to pay.

For instance, for a loan amount of Rs 5croreat and interest rate of 9% and 30 year loan tenure, you can get Rs.4, 09,527 as your EMI.

Wondering where you can find such calculators? Well you actually have a plethora of choices. Most leading lenders will have an EMI Calculator on their website. If you’re looking for an independent calculator, you can turn to one of the many home loan aggregators’ sites, they too have a calculator you can use to plan your finances.

Remember, this one simple tool can make things much easier and will save you the time and effort of manually calculating your EMI through mental racking or complex Excel formulae.

Things to consider before taking the loan

If anything goes parallel with home loan then it is marriage. Both involve huge finances, emotions and a long time commitment. Don’t let this push your thought train to frenzy.  Just like the marriage with an ideal partner can turn out to be the best decision, similarly investing in a property can. From the various lending institutes sprawled in the nook and corner of the city, borrowers choose different institute depending on the interest rates offered, loan tenure and the terms and conditions. It is not necessary that the same loan is applicable for all borrowers, depending on the eligibility of the borrower and the type of loan he or she selects, the lender they choose it varies.

Before applying for home loan, consider the following:

Are you in a situation for long time commitment?

Taking a loan is not the only thing that matters, repaying the monthly EMIs are most important. It calls for a long time, at least a decade. Evaluate your current source of income and its efficiency in fulfilling the EMI commitment. Plan your budget accordingly and start saving immediately.

Will the loan commitment affect other responsibilities?

Investing in a property is important but it’s a part of the dream. There are other responsibilities which is more important like education of your child, health of your family, etc. these are large and important expenses. Take the decision of going for a long tenure after considering your duties towards your family.

Is the loan offer luring?

There are various loan offers available in the market which appears lucrative to the potential customers. The loan market is a competitive market and various institutes attract customers with various offers to stand out in the market. The prudent borrowers will dive deeper into the surface and would not be misguided by the enticing figures, which appears too good to be true. Grab the offer only after you are sure about the associated charges and caveats.

Did you researched and taken experts advice?

Research about the loan can reveal facts, which will help you take a confident decision by negotiating better. In this competitive and ever changing time, it is better to view things from refreshed prospective. More updated your research, more it will be helpful for you. In this digital market era every information, expert advice and reviews from existing customers is available in your fingertips. This will help you frame your process.

The organizations offer you the home loan for buying properties under construction, a ready flat from the listed builder or a plot of land. Loan is even given for extension of present construction or renovating a property. With the basic eligibility criteria, your credit score is a deciding factor for loan sanction, amount of loan and the rate of interest. Try to maintain a good score. When going with the home loan, try to clear all pending debts so the loan burden does not pull you down. Investing in buying property calls for a good deal amount of financial attention, so it’s better to clear this debt first, before going for some other loan. EMI payment will take away a major portion of your salary and saving so it’s better to clear this debt first for hassle-free loan tenure.