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.