Deciding if you need to avail a home loan to buy a house is a crucial step in the home-buying process as this can have a huge impact on your finances. If you choose to take a home loan, it is essential that you compare all the different loans offered by various banks and financial institutions and make an informed decision.
When you avail a home loan, you will be repaying the loan in the form of home loan EMIs. In case you are wondering how much of a monthly EMI will you be able to afford if you avail a home loan, try using a home loan EMI calculator.
What is a Home Loan EMI Calculator?
A home loan EMI calculator is an online tool offered by banks and other financial institutions to help you determine your monthly home loan EMI amount. You can also use this calculator to determine your home renovation loan EMI.
The calculator has different fields where you can enter your principal home loan amount, the loan tenure, and the home loan interest rate that you are comfortable with. The online home loan EMI calculator then tells you how much your monthly home loan EMI will be.
How Can a Home Loan EMI Calculator Help You Organise Your Finances?
When you avail a home loan, you will be paying back the EMIs for a very long duration, which can be as long as 20-30 years! The EMI can take up a huge chunk of your expenses, having a significant impact on your monthly budget.
Earlier, it was difficult to determine how much monthly EMI you would have to pay for a home loan without having an extensive discussion with the lender. However, you can now use the home loan EMI calculator and get a fair idea of how much of your monthly budget you will be spending to repay the home loan.
Once you know your home loan EMI amount, you can plan your monthly finances accordingly. Using a home loan calculator will also help you decide if you want to get a home loan or not. With this calculator, you can understand if, according to your current earnings and expenses, you will be able to afford to pay the home loan EMIs or not.
What are the Other Benefits of Using a Home Loan EMI Calculator?
Using a home loan EMI calculator can also help you with:
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Choosing the right home loan tenure:
Using a home loan EMI calculator can help you calculate your monthly EMI outgo for a particular loan tenure. Based on the output, if you feel you can pay a higher EMI amount every month, you can choose to avail a home loan with a shorter tenure.
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Comparing and choosing the right lender:
With various lenders offering home loans at attractive interest rates, it can be difficult to choose the right lender for your home loan. You can use a home loan EMI calculator to check and compare the overall cost of home loans offered by different lenders, and then determine which one suits your needs.
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Effective financial management:
If you know how much you will be paying every month to repay the home loan, you can readjust and plan your monthly expenses effectively. You can decide which expenses you can do without to accommodate the EMI amount in your monthly financial plan.
