Why to Use a Home Loan EMI Calculator?

With the easy availability of home loans, being a homeowner today is much easier and convenient. However, despite the availability of choices and hassle-free nature, a home loan is still a huge financial responsibility that can meddle with your finances if not managed properly. Therefore, it is of utmost importance to apply for a home loan after thorough research, calculation and deliberation about the lenders, the home loan EMI and home loan interest rates. To this effect, you can use several online calculators, of which the most important one is the home loan EMI calculator, which is also referred to as the home loan interest calculator. 

Using this tools will not only help you make accurate calculations and save time, but also ensure that you make sound financial decisions, borrowing within your limits. Read on to know why you should use a home loan EMI calculator when planning to buy a home using housing finance. 

Easy-to-use and hassle-free

A home loan EMI calculator is user-friendly. You just need to enter the loan amount you need, the interest rate and the repayment tenor. Within a few seconds, the calculator gives you your corresponding EMI amount, total interest payable and the total cost of the loan (loan amount + interest amount). For instance, for a Rs. 15 lakh home loan amount, EMI will be Rs.16,516 for repayment tenor of 20 years with an interest rate of 12%. Similarly, for a Rs. 30 lakh home loan, EMI will be Rs.33,032 for the same tenor and interest rate. This way, a home loan EMI calculator ensures that you do not need to manually perform complicated and lengthy calculations and thus eliminate any margin of error.

A better understanding of the total interest payable

A home loan EMI calculator helps you understand the nuances of the various components of a home loan. For instance, you can easily calculate your interest outgo on a home loan using the home loan EMI calculator, as it converts the interest rate into an actual amount. This gives you a clear idea of the cost of the loan. 

Easily compare multiple loan offers

With the availability of multiple home loan lenders, choosing the one that best suits your financial standings can be challenging. However, a little research and comparison can go a long way. However, comparing loan offerings from various lenders manually is tedious, and even a single calculation mistake can result in a damaging financial decision. However, all of this can be averted using a home loan EMI calculator that guarantees accurate results in no time at all. Therefore, you can calculate your total EMI outgo for loan offerings from different lenders with different types of home loan interest rates. This way, you can choose the one that best meets your needs and does not strain your finances.

Beneficial in financial planning

A home loan EMI calculator gives you the exact EMI you have to pay towards the loan. This gives you an idea about how you can manage your monthly finances, ensuring that you make your payments on time without straining your personal finances. By forecasting your EMI, you can plan the repayment of the home loan better while ensuring you do not hold back on your expenses and investments for the loan’s tenor.

Assists in choosing the right tenor and planning pre-payment

By knowing your EMI outgo, you can decide the right repayment tenor of the loan. Depending on your finances, you can either choose a short tenor and save on the cost of borrowing or choose a long tenor with lower EMIs. Moreover, using a home loan EMI calculator, you can plan to prepay your loan whenever you have surplus funds that you can spare. This is because an EMI calculator shows you the exact component of your EMIs over time with an amortisation schedule. So, you can see when you are repaying more interest and when you are repaying more of the principal. 

Due to these 5 advantages, using a home loan EMI calculator is a must-do to plan your home better and repay stress-free.