Benefits of A House Loan Calculator: Here’s What you Need to Know
With the easy availability of home loans, purchasing a house is now more affordable for common citizens. However, home loans come with repayment of EMIs, and defaulting has its own outcomes. Therefore, individuals can take the help of house loan calculators for EMI to calculate their EMIs and plan their finances in advance.
What are the benefits of using a housing loan calculator?
Following are a few benefits of using a home loan calculator:
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It produces results in just a few seconds
Manually calculating EMIs requires time and effort and is a procedure prone to errors. Instead, one can use a house loan calculator to make calculations quickly and accurately. Individuals will get results from the calculator in a matter of seconds. To find an EMI that will work best for them, borrowers can try as many permutations and combinations as they like, thanks to the calculator’s speed.
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The calculator guarantees accurate results
Manually calculating EMI is error-prone since there are several variables involved. The home loan calculator works on predefined algorithms. This removes any possibility of mistakes if the values entered are correct.
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Borrowers can use it to plan the loan journey
The ability to plan for a house loan is one of the main benefits that the home loan EMI calculator provides. It will calculate the monthly home loan EMIs when borrowers enter their desired loan amount and specified tenor. They can determine whether they can afford the desired loan amount by knowing their EMIs.
The calculator will not only compute the monthly EMIs but also break down the value of their loan. Borrowers will be informed of the amounts of the EMI that go toward principal and interest repayment and how these amounts change with duration.
One should use a housing loan calculator to make sure one is borrowing only what one can afford.
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It can be used to schedule repayments
An important option for borrowers to pay off their debt as quickly as possible is to make partial prepayments. Therefore, one should choose part-prepayment to lower the loan amount if one has access to additional money during the loan term. One can use a calculator for a home loan to comprehend how a part-prepayment affects loan tenure. However, borrowers should keep in mind a few factors before they choose prepayment of their home loan.
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Borrowers can use it to determine which offer is best for them
If individuals intend to take a loan, they should speak with various lenders to understand what each of them offers. Loan applicants should use the home loan calculator to compare multiple loan offers to have a clear picture of how to repay their credit. They can use the calculator to find out the total cost of each loan offer and the monthly interest payment required for each loan. It will be easier for them to choose the loan offer that is best suited for them if they have this information at hand.
How to use a home loan calculator?
Now that individuals know the benefits of using a house loan calculator for EMI, they should also be aware of the steps to use it.
- Borrowers need to visit the lender’s website and access the home loan EMI calculator
- Then, they need to fill in the loan amount, a comfortable repayment tenor and the housing loan interest rate.
- On clicking the calculate option, borrowers can see the results instantly.
Apart from using the home loan EMI calculators, borrowers should also use a home loan eligibility calculator to get an idea of how much EMI they are eligible for.
Knowing the EMI amount and eligibility in advance will help the borrowers negotiate better options with the lenders. Furthermore, they should check their pre-approved offers that lenders provide on various secured and unsecured loans. These offers are available to existing customers on various products including home loan and loan against property. They significantly expedite the loan application process.
So, interested individuals must start calculating their EMIs with a house loan calculator. After that, they can begin by applying for the loan online or visiting the nearest branch of their preferred lending institution and filling out the application form.