The Benefits Of A Home Loan EMI Calculator In India
A home loan calculator in India helps you to get an approximate estimate for the EMI levied on a selected property. While this may seem obvious, there are quite a few benefits connected with this online tool. Among other things, it helps users to make informed decisions and gives them a better understanding of the market. Apart from calculating the EMI, this free online tool can also come in handy in other situations as well. Let’s take a look at some of these:
First timer benefit: As a first time house owner, you will have certain expectations when it comes to your home. It is difficult though to know the real estate market well enough to anticipate important decisions concerning your home and home loan. The type of property, location as well as the number of rooms will affect the cost of the same. Whether your dream home is a duplex in the city or an apartment in the suburbs, a good EMI calculator for home loan can help you to estimate the area of the house based on the EMI you can manage every month. With EMI calculations made in advance, it will be easy for you to know whether to hunt for a 1 BHK in SoBo or a 3 BHK in Noida. Most financial experts advise to opt for home loan EMI which is approximately 20 to 30 percent of your total income. Factoring this makes it easier to calculate the EMI and find the most suitable property.
Ease of access: Available as a free tool online, a home loan calculator is available around the clock. But what else can you do? Most calculators help you to check the rates of various properties for possible loan tenures and offer a standard home loan interest rate. There are other EMI calculators that will allow you to enter the interest rate that you are comfortable with. It is important to understand that several finance companies offer different rates. A borrower, who has a good track record of loan returns, can find that the interest rate is negotiable as well. Keeping this in mind, it makes sense to identify the right combination of interest rate and loan term while undertaking your calculations.
Insights: Some calculators will also help you to understand how to customize your loan to suit your financial needs. For example, it is understood that extending the loan term for a longer period of time will lower the EMIs. That, however, means that much of your payment will be used to pay off the interest rate, with relatively little going to the principal amount. A home loan EMI calculator will help you to get a better estimate on how much you will have to pay while enabling you to make informed decisions.
These online tools come with a few limitations, though. An EMI calculator may not be enough to understand the impact of the fixed and floating interest rates in India. It will also be unable to calculate the EMIs for customized repayment schemes. It is advisable, thus, to take these rough estimates as a basic guideline to help you to select the right property, loan term and EMI.
