A home loan decision is what many people want to take to build or buy their dream home.
But a home loan comes with a longer tenor and is considered a long-term obligation.
It is why it becomes vital to know about the exact home loan EMI amount before applying.
Once an applicant knows how much to pay per month over a tenor, he can start planning finances ahead.
Nowadays, you don’t have to scratch your head in computing the precisely payable home loan EMI amount.
It is because you can use the online home loan EMI calculator on a lender’s website for free. It can help you compute your housing loan EMI amount and approach your loan with care.
If you wish to know how to make the best use of the home loan EMI calculator, continue reading!
How to make the best use of the home loan EMI calculator?
Making the best use of the EMI calculator for home loans is possible if you use the tool of a known lender. Using a housing loan EMI calculator is easy if you can follow the below standard steps:
- Land on the website of the lender you want to apply for a home loan with. Open the home loan EMI calculator from the calculators’ section.
- On the home loan EMI calculator, enter or choose your desired housing loan amount, the applicable interest rate and your repayment tenor.
- Once done, the online home loan EMI calculator will display an exact amount you have to pay per month over a tenor.
Along with the EMI figure, you can also know about your actual home loan interest rate charges and the total loan cost (principle + tenor).
The steps mentioned above are standard ones. Each of the lenders may have their steps to calculate home loan EMIs. Hence, you should ensure everything after landing on your lender’s website in advance.
What factors affect your home loan EMI?
- Your desired home loan amount
The desired home loan amount is the principal amount you apply for with a creditor. It is directly proportional to your housing loan EMIs. The lower it is; the lower will your monthly instalments and vice versa.
- The applicable home loan interest rate
The interest rate at which the lender offers you the home loan also affects your EMI amount. It is also directly proportional to home loan EMIs’ value.
- Your loan repayment tenor
The tenor is the duration within which you have to repay your home loan. The tenor is inversely proportional to it. The longer is your home loan repayment tenor; the lower is your home loan EMI and vice versa. But choosing a longer tenor means extra interest charges, while a shorter tenor makes you save on it.
You can now start making the most of the online home loan EMI calculator and arrive at an exact EMI figure without issues.
If you want to avail of a lower home loan interest rate, you should compare all loan offers online. You can do that on a third-party platform and choose an offer matching your repayment budget and requirements the most.
Anyone whose CIBIL score is also robust can expect to enjoy a loan approval at a lower rate. A higher credit score showcases that you are a responsible borrower. Hence, a lender may award you with a large amount at a lower interest rate.
It is possible to maintain a higher credit score by paying your loan EMIs and credit card dues on time.
You can also do that if you apply for one loan at a time and maintaining a mix of credits like a secured and unsecured loan.
