Thinking about whether to rent or buy a house is a very important decision that one needs to make as per their budget, preference, and long-term planning. Real estate prices can be expensive, but those who have set their minds on buying property might require financial assistance to do so. Even if one has an ample amount of savings, they might not prefer to use most of it to buy a house. A good solution is to apply for a home loan to arrange for the funds. Most financial institutions offer their home loan borrowers a period of 20 years to repay the loan, which helps in clearing the loan in convenient monthly instalments.
Now, before going ahead and speaking to a lender about a home loan, it is advisable to first make use of a home loan EMI calculator. For those who are not familiar with this calculator, it is an online tool that helps in displaying the home loan’s monthly instalments beforehand.
Look at 5 things that every borrower should be aware of when it comes to a home loan EMI calculator:
- A home loan EMI calculator provides instant EMI results
Manually calculating a home loan’s monthly instalments can be taxing and can also lead to errors. This can cause problems in the repayment of the loan. However, with a home loan EMI calculator, there is no need to worry anymore. After it gets the information it needs, it displays the loan’s EMI results immediately.
- It plays an important role in choosing a suitable loan plan
To arrive at a suitable loan plan, a borrower needs to first consider numerous loan plans to check which plan suits their budget best. A home loan EMI calculator helps in learning about various home loan plans by displaying each one’s EMI results. It allows borrowers to keep changing the values of the home loan interest rate, amount, and tenure. This is a great way to find a loan plan that fits their budget.
- It shows how prepayments impact the home loan EMIs
Some borrowers might prefer to make prepayments towards their home loans but might be uncertain as to how it would impact their monthly instalments. A home loan EMI calculator can help in understanding how the loan’s EMIs would be calculated if a prepayment is made.
- It is available for free of cost
The best part is that there is no need to visit any lender to access a home loan EMI calculator. Any user can go online and visit a lender’s website. Most financial institutions make this calculator freely accessible, which means anyone can use it at any time for free.
There have been cases where borrowers have struggled to clear their home loans. This can easily be avoided by simply using a home loan EMI calculator. Using this home loan calculator will help in understanding the exact home loan EMI figures, so the borrower is prepared to pay them once the EMI payments begin.