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Buying a house involves a huge amount of money. So, very few people have the capacity to buy one outright using their own funds, while the majority of people need to take out a home loan to buy their dream home.
As a home loan provides capital to buy a long-term asset, helps in saving rents by moving to own house and also provides tax benefits on interest payment and principal repayment, people intending to buy their own house prefer to avail the loan.
“Buying a home is one of the top financial goals for many of us. However, because of the high cost of real estate, it becomes challenging for people to purchase a home out of their own pocket. Therefore, a home loan is a practical choice for many people to buy their ideal home. However, taking out a home loan necessitates a sizable shift in the spending strategy to pay the EMI. As a result, the home loan should be affordable and appropriate for you. This is where a home loan EMI calculator comes into the picture to help you figure out how much EMI you’d have to pay each month to repay your loan in a specific amount of time,” said Pramod Kathuria, Founder & CEO, Easiloan.
Talking about what a home loan EMI calculator does, Kathuria said, “The Home Loan EMI Calculator is an online tool that helps you to calculate your monthly home loan EMI. The user-friendly design of the online calculator tools enables you to quickly toggle between your selected interest rate, loan amount, and loan tenure, providing you with various repayment options based on your preference.”
Kathuria explains how calculating home loan EMI can make financial planning easy for you:
It helps you choose the right lender and the right loan amount
With several lenders offering easy home loans, it becomes challenging to choose the right one. In this case, you can use the EMI calculator to analyse the total cost of various loans and decide which offers the best value for your money.
Additionally, it is wise to avail a loan amount that you can comfortably repay without putting further strain on your finances. Hence, you can use the home loan EMI calculator to get a better idea of how much home loan amount you can afford. This will make repayment easier and reduce the likelihood of default.
It helps you choose the suitable tenure
The tenure of the loan is crucial in determining the monthly instalment amount. Your house loan EMI will be less if you have a longer tenure, whereas a shorter term would result in a larger EMI. Therefore, select a loan term that makes your EMIs manageable based on your income and spending. You can find a suitable tenure with the EMI calculator.
It simplifies planning for prepayment of the loan
Having an idea about the expected EMI makes planning for the home loan prepayment smooth. This can lower your interest payment and hasten the repayment of your debt. For example, if you are aware of your EMI, you may easily arrange part-prepayments and plan the timing of your investments.
It’s easy to use
There are no difficult calculations involved in using a home loan calculator. All you have to do is enter the principal amount, interest rate, and loan term, and in a matter of seconds, accurate computation of your EMI will appear on your computer screen.
“The home loan calculator is one of the most valuable tools, which makes the process of availing and repaying a home loan simple and convenient. So, calculate your home loan EMI and get a home loan today to buy the house of your dreams. However, do your homework on the lender before applying for a home loan to avoid any inconveniences later,” said Kathuria.