Owning a home is one of the most appreciated marks of success in this world, and a home also provides security to the owner. But with the rising prices of real estate, purchasing a house in a single payment can be quite strenuous financially for an individual. One of the optimal ways of generating funds for the purchase of a house is a home loan. A home loan is a lump sum of amount which is borrowed from a financial institution or a bank for the sole purpose of purchasing a home.
A home loan is an effective way of gathering funds for buying a home without dipping in to the savings. The purchase of a home is a long-term decision, which makes it important to look for the interest component as the longer the tenure of loan is, the more expensive the home loan will be. A lot of financial institutions offer reasonable and attractive interest rates for making the home loan affordable for the customer.
Financial institutions offer two types of interest rates through a home loan, a floating and a fixed interest rate. Customers can opt for either one of them depending on which better suits their specific requirements. A lot of banks and financial institutions offer reasonable and attractive interest rates for making a home loan affordable for the customer.
The repayment of a home loan is done through equated monthly instalments (EMIs) making the repayment of the loan amount convenient and easy for the customer. Repayment of a loan done monthly will make the process of repayment easy for the customer since they can choose the tenure of the loan and choose a tenure that is not stressful for them. If a customer wishes to use a home loan EMI calculator for calculating the EMI amount, they just have to visit the official website of the financial institution for
5 advantages of a home loan EMI calculator:
- Easy calculation:
Any customer who wishes to get the figure on the EMI repayment will just need to enter the loan amount, rate of interest, loan tenure and processing fee (if available). The calculation will be done by the home loan calculator and the EMI amount will be provided by the calculator.
- Choosing the right tenure:
After getting the precise EMI amount figure, an individual can then choose the right tenure of the loan. They can decide whether they can afford to pay a high EMI and choose a short tenure period for paying off the loan quickly, or they can pay a comfortable EMI and extend their loan period.
- Beneficial for loan management:
While making EMI payments, sometimes a customer may have some extra funds for making prepayments. If a customer wants to revisit the financials and see how a prepayment will help for paying off the loan before a term ends, a home loan EMI calculator will help a customer do that.
- Comparing loan offers:
A customer can use the loan calculator for comparing the loan offers from different banks. Results show the total cost of the loan along with respective EMIs. This helps in narrowing down on the best option for the customer and choosing the loan that suits their set of specific requisites.
- Accurate results:
To err is human, when a calculation is done manually some miscalculation may occur without the customer realizing and it may produce incorrect results. An online home loan EMI calculator will never show incorrect results, all the calculations are done with hundred percent accuracy.
