Explore the Various Uses of a Home Loan EMI Calculator

For many people, having a home is among the most crucial aspects of life. But buying a home is difficult because of high real estate costs and a lack of funding. Home loans have made it easier for the average person to get money. But any credit, including home loans, comes with many responsibilities. Thus to get an idea about your EMIs, you can use a home loan EMI calculator. Before borrowing a lot of money, knowing where your money is going is essential. To get a home loan, you need to plan because the repayment period is long and will affect your funds for a long time.

If you know ahead of time how much you spend each month, you can avoid financial problems. It’s a free tool that only needs a few details from you to figure out the monthly payments. You can also figure out monthly payments manually, but it’s a bit of a hassle. Let’s start by using the home loan EMI calculator. 

Importance of EMI

EMI means Equated Monthly Installment. Each EMI comprises a part of the loan’s principal and the interest the bank charges to the lender. After each EMI is paid, the amount of the principal loan that is still owed goes down.  

The loan amount, the length of the loan, and the interest rate are all things that can make or break an EMI. For the same loan balance and interest rate, the EMIs will be lower with a longer tenure and higher with a shorter tenure. 

There are multiple ways to figure out a home loan’s monthly payment. A home loan EMI calculator is one of them, among others. But, just before we get to that, it’s important to know a few key terms.

What is a Home Loan EMI calculator?

The Home Loan EMI Calculator is a tool you can use online to figure out your monthly EMI. The calculator will tell you exactly how much EMI has to pay based on some information about home loans. It also has a chart that shows when payments will be made and how much the total payment will be. 

Benefits of Home Loan EMI Calculator

There are many benefits to using the home loan EMI calculator. This online tool enables you to plan your home loan carefully. Let’s look at some benefits of a home loan EMI calculator.  

• It is Easy, Convenient, Quick, and Right: 

When planning a home loan, you can’t go wrong by looking at the numbers. Manual calculations can cause errors. The home loan EMI calculator solves this problem because it always gives you the correct answers.

• Quick Calculations: 

Making calculations about your loan with a pen and paper will take hours. These calculations, however, can be performed with a single mouse click using the EMI online calculator. With this online EMI calculator, you don’t have to keep checking and rechecking your work. 

• Planning for Money: 

You can avoid future money problems by using the EMI loan calculator. If you know the monthly payment for your home loan ahead of time, you can better plan your budget and get a payment that fits your needs. 

• Good for Loan Management: 

With EMI payments, people sometimes have extra money that they can use to prepay. The home loan EMI calculator can help people look at their finances and figure out how the down payment will help them pay off the loan before the due date. 

• Examining Loan Offers: 

A loan calculator lets customers compare offers by different banks. The results show each EMI and the total cost of borrowing. This will help clients choose the best loan for their needs by narrowing down their options. 

• No need for personal information: 

You don’t have to worry about security when you use a home loan EMI calculator because you don’t have to give out your personal information. This makes it entirely safe to use. You may have had trouble getting a home loan, but now you’re ready to start the route to your new home. If so, the next step is to use an online loan calculator, like a home loan EMI calculator, to figure out your EMI. 

Some Steps to Calculate Home Loan EMI

Here are three easy steps to use a home loan EMI calculator to figure out your EMI: 

• Step 1: Put the home loan amount into the calculator. 

Find out how much the house you want to buy will cost, such as stamp duty and other fees. Then, figure out how much money you have saved up that you can use as a down payment on the loan. You can figure out how much of a loan you need by taking the down payment from the total cost of the property. Put this loan amount into the calculator to get to the first step of figuring out your EMI. 

• Step 2: Put in the repayment tenor 

Lenders let people take a long time to pay back their home loans. Think about how long it will take you to pay back the loan. Then, put the number of years it will take to pay off the loan into the home loan calculator. 

• Step 3: Type in the rate of interest 

Find out how much interest the lender charges. To finish the last step of the calculation, insert this interest rate into the calculator. Once you’ve put in all the numbers, you can click “calculate” or “enter,” and the house loan calculator will figure out the exact EMI you’ll have to pay for the loan. 

Conclusion

Most people are making EMI payments for multiple loans at once. If you belong to this group, you already know that taking on additional loans will impact your financial situation. The home loan EMI calculator allows you to take into account your other loans and guides you in choosing the tenure and rate of interest after figuring out the other payable EMIs. If you have the money to pay off your mortgage (or other loans) before the term is specified, you can also easily calculate the costs associated with the foreclosure.

For more information, you can visit the Piramal Finance website and explore their products and services.