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.