Written by 5:13 am Financial Plans

Use Our Home Loan Calculator for Easy Loan Planning

HOME LOAN

Under home loans, banks, NBFCs and commercial lenders sanction up to 85% of a property’s net market value as a loan. The percentage goes down if the buyer has invested in a high-value property. In any case, home loans, though secured by the property bought with loan money. Therefore, drawing low housing loan interest rates, unavoidably involve a high loan amount. 

Consequently, even a small mistake while assessing one’s financial stability and repayment capacity can lead to one landing in huge trouble. Missing out on home loan EMIs for consecutively over 6 months or defaulting on a home loan. Altogether will have a major impact on your CIBIL score and ability to access credit in the future.

In the worst-case scenario, overseeing your repayment capacity and borrowing more than you can repay can also lead to you losing ownership of your home. Therefore, it is pivotal that home loans be borrowed after elaborate and deep financial planning and a home loan calculator is the tool that helps you do so. 

What is a Home Loan Calculator?

The home loan calculator is an online tool that helps home loan applicants calculate the loan EMIs. They will need to pay each month if they want to repay the loan and become debt-free within their selected time frame. Home loan calculators are available to be used for free on the internet. There are no fees or charges applicable to their usage. Further, these calculators do not require a lot of information to deliver results. They ask loan applicants to enter three things: the principal amount, the housing loan interest rate they have been offered. The loan tenor or the number of years they will need to repay the loan. 

Once these three things go into the home loan calculator, the calculator delivers results within a fraction of a second. The result includes the home loan EMIs that the loan borrower will need to pay towards the loan, the total interest they will have paid by the end of the loan term and therefore, the total cost of borrowing funds. 

How Does the Home Loan Calculator Help with Home Loan Repayment Planning? 

The home loan calculator can help make your loan repayment journey easy and stress-free. It is a handy tool that helps with repayment planning in many ways. Here’s how. 

  1. With the help of a home loan calculator, calculate their loan EMIs for the combination of loan amount and tenor they have in mind. Once the loan applicant has full clarity regarding the EMI they will need to pay each month. They can strategize their monthly expenses and allocate funds in such a way as to ensure they can easily cover all their expenses. In this way, the home loan calculator makes the home loan journey easy and stress-free for home loan borrowers.
  2. The home loan calculator is quick. It is also accurate. Thus, loan applicants can change the input values several times to see how any changes in them will affect the home loan eligibility, affordability and the total cost of borrowing funds. If the EMIs one sees on the screen are unaffordable or if the total interest payout on the loan is too high, the loan borrower can either change the loan tenor or the home loan amount to bring the final values to suit their needs and desires. Thus, the home loan calculator also helps borrowers decide the right combination of loan tenor and principal amount for them.

  3. The results delivered by the home loan calculator also include the amortization schedule, which is essentially a breakdown of how different payments made by you will go towards the repayment of the principal and interest components of your home loan. The amortization schedule can prove helpful if you are trying to prepay your loan or foreclose it altogether.

  4. Prepayments and foreclosures prove the most beneficial when a loan borrower chooses to go for them. When there is still a considerable amount of interest left to be repaid and the home loan calculator helps borrowers. Such a time frame from the amortization schedule provided to them. 

Final Words

Home loans can make your life much easier. However, these loans must always be availed of after careful financial planning and a home loan calculator helps here. Further, all loan applicants must also apply to keep their home loan eligibility in mind. When they have all the required documents for home loans. This will simplify and speed up the process of availing a home loan while also making your home loan journey simple and easy. 

Visited 5 times, 1 visit(s) today
Close Search Window
Close