Wanna Know How To Calculate Home Loan- If Yes, Read This

Wanna Know How To Calculate Home Loan- If Yes, Read This

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Looking to buy a home loan? If yes, what is the first thought that strikes you? Is it interest rate, tenure, loan amount or the EMI? Well, let me tell you buddy, each of these factors plays a crucial role to calculate home loan journey and have their own importance. So, let’s get started and discuss each of these factors in detail below.

First on the list is the interest rate that actually is a deciding factor in your overall loan journey. Yes, that’s right! Whenever you plan to avail a loan so as to buy your dream home, it is important to keep an eye on the interest rate as higher the rates are the more you need to pay from your pocket to repay the loan. So, it would be a smart move for you to compare the rates among different lenders before you say yes to one. While comparing, it becomes easier for you to grab the best deal. Also, a home loan is a long-term commitment so availing the same at lower interest rate will also reduce overall outgo from your pocket.

Next on the list is the tenure i.e. the repayment period. Well, those who are not aware, let them know that home loan is a big commitment as the amount availed by people is high, hence is it usually difficult for the borrowers to repay the same within shorter tenure. Thus, the longer the tenure would be, the less burden will be on your shoulder as your overall outgo will be less. So, tenure is another aspect that you need to look at while availing a loan.

Apart from these two parameters, EMI i.e. Equated Monthly Installment is also in the league, which is no doubt a game changer. Yes, before availing a loan, it is good to calculate your EMIs in advance as it gives you an estimation in advance i.e. how much you are going to pay each month for the same. However, one thing that needs to be mentioned here is the fact that when it comes to calculating the EMIs, actually it is not that difficult because these days you have this one tool that allows you to do all the calculations so easily.

Yes, you read that absolutely right! We are talking about home loan EMI calculator, which does all the hard work for you and gives you the results instantaneously. This smart, time-saving and effective device starts its magic when you put loan amount, tenure and interest rate in it. The moment it reads these values entered by you, it will fetch the results for you, thus allows you to know your EMIs within few seconds. Moreover, with the help of this tool, it is easy and quick for all the borrowers to know the exact amount of their EMIs, which they need to pay each month.

In order to give you a better understanding of the same, let’s just take a help from an example below.

Suppose, Rajat Sharma, a Senior Manager by profession is looking to buy a home in New Delhi. He wants to buy a property located in Haus Khas, which will cost him ₹50 Lakh. Well, he just has a saving of ₹10 Lakh, thus to arrange the remaining amount he needs to avail a loan of ₹40. One lender is ready to offer him the same loan amount for 20 years at an interest rate of 8.60. Now, what would be his EMIs for the same? How much interest outgo will be pay so as to repay his loan? These are the questions for which Rajat is looking the answers. Well, this is where the EMI Calculator comes into the picture, letting him know his EMIs towards the loan. So, to calculate home loan EMIs, he used this tool and the amount comes out to be ₹34,967 and interest outgo would be ₹43,91,962.

You can only know these values so quick and in the easiest manner with the help of an EMI Calculator as it gives you the exact calculations in best possible manner. Thus, it would not be wrong to say that your home loan journey is going to be a hassle-free and enjoyable journey as now you know how to calculate your home loan.