We often dream about purchasing our own house. In reality, money becomes a barrier, making us give up on our dreams. Fortunately, with the support of banks and lenders, you can secure the funds needed to make your dream home a reality.
A Home Loan can provide the financial assistance you need to purchase your dream house. However, it’s important to plan ahead and understand your repayment obligations. This is where a Home Loan EMI calculator becomes essential. In this blog, we aim to address why you should use this EMI calculator before applying.
What is a Home Loan EMI Calculator?
A Home Loan EMI calculator is a convenient tool to check your monthly EMIs based on certain information such as borrowed amount, Housing Loan interest rate, tenure, and some additional variables. It helps you to estimate your monthly payments and budget your finances efficiently.
Why must you use the Home Loan EMI calculator before application?
Leads to better financial decision
A Home Loan is a long-term commitment. So, before you submit your loan application you must figure out whether you can pay your loan’s EMI in the coming years. By using a Home Loan EMI calculator, you can estimate your repayment amount or EMIs, helping you make an informed financial decision.
It helps you understand whether your monthly earnings are sufficient to pay the monthly EMIs or not. Also, you can make changes to the loan amount and tenure to find the most suitable EMI that fits within your financial condition.
Assists in selecting the loan tenure and loan amount
Your monthly EMI doesn’t only depend on the Housing Loan interest rate. The tenure and amount you select have a direct influence on your monthly EMIs. Remember, a shorter tenure always indicates higher EMIs and vice versa. Similarly, if you find the EMIs are too expensive for you, you can simply lower the loan amount. By calculating the monthly EMIs earlier, you can choose a loan amount that aligns with your budget and monthly income.
As mentioned earlier, you can make adjustments to the tenure and loan amount to decide the best loan option that suits your financial capacity.Â
Therefore, before you submit your loan application, it’s wise to check the monthly EMIs using a Home Loan EMI calculator and see whether you can afford to pay the EMIs.
Allows you to compare the loans offered by different banks or lenders
Do not choose the first offer you receive from a bank or lender. For an informed decision, it’s better to compare different loans offered by different banks or lenders.Â
Remember, every bank has different types of Home Loans, interest rates, and tenures. Therefore, you must use their Home Loan EMI calculator to see which loan aligns with your budget, expectations, and affordability.
Saves time
Using a Home Loan EMI calculator significantly cuts down the time you would otherwise spend manually calculating monthly instalments. Manually determining your EMI involves complex mathematical formulas that can be both time-consuming and prone to error. An EMI calculator automates this process and provides instant and accurate results with just a few clicks.
Final Thoughts
By using a Home Loan EMI calculator, you gain a better understanding of how Housing Loan interest rates and other factors can influence the monthly EMI structure. Also, this calculator helps you plan your finances earlier.Â
It not only helps in selecting the right loan amount but also increases your chance for instant approval. Therefore, you must use this calculation tool before you submit your final loan application.