Buying a house can be quite stressful, from a purely monetary aspect. What most homebuyers do is rely on home loans to arrange for the required finances for a house purchase. A home loan can cover up to 75%-90% of the property cost. However, before going ahead and applying for one, it is very important to be sure of the loan’s repayment, so that there are no complications in clearing the home loan EMI payments.
When it comes to understanding whether a particular loan plan can be afforded, it is first necessary to calculate the loan’s EMI payments. Now, one can either choose to manually calculate these EMI payments or use a home loan EMI calculator, the latter being a much more preferred option.
Let us take a look at 5 key benefits that this calculator offers its users to understand why it should be a preferred option:
- A home loan EMI calculator helps in choosing the right repayment tenure
For a housing loan to be repaid smoothly, it is very important to make sure that the repayment tenure suits your budget. Some borrowers might prefer to opt for a long repayment tenure; however, this would increase the interest payments towards the loan. On the other hand, choosing a very short tenure would increase the EMI payments. By using a home loan EMI calculator, one can find the perfect tenure that suits their budget as well as offers them a good deal.
- Allows borrowers to consider numerous loan plans
The best way to find a home loan plan that suits your budget is to consider numerous plans. Now, using a home loan EMI calculator can be helpful as this tool allows users to try out different variations. This means that one can keep changing values of the loan amount, interest rate, and tenure to arrive at an EMI result that they are comfortable with.
- It is extremely easy to operate
Manually calculating a home loan’s monthly instalments can take up a lot of time. A much easier way is to simply use a home loan EMI calculator instead. All that the calculator needs is information regarding home loan interest rate, principal amount, and repayment tenure. With these details, it will display the EMI results in seconds.
- It provides accurate EMI results
In some cases, borrowers have known to struggle with clearing their home loan EMIs. One common problem in these situations is that these borrowers have miscalculated the EMIs that were to be paid. This is not going to be a problem with a home loan EMI calculator, as it provides accurate results immediately.
- This calculator gives a better understanding of prepayments
If a borrower is looking to make a prepayment towards their home loan but is not sure about how it would impact their loan’s monthly instalments, they should use a home loan EMI calculator. This is because this calculator can help them to learn how their EMI payments are calculated when a prepayment is made.
Most financial institutions make this calculator available on their official websites where anyone can use these tools for free. Borrowers can also use an eligibility calculator to check their home loan eligibility.