The first piece of advice that an individual planning to avail themselves of a home loan gets is not to borrow more than they can repay and plan repayment in advance. Home loans are big-ticket expenses with long repayment tenor, often stretching up to 20 to 30 years. Thus, when availed of without careful planning, a home loan can easily become a burden. If you have opted to repay your home loan over 20 years, know that a considerable portion of your monthly income will go towards EMI payment and after a while, these EMI payments can begin to feel burdensome if you have availed yourself of a home loan amount more than your income permits you to comfortably afford. 

All home loan applicants are therefore advised the use a housing loan EMI calculator. So, what is a housing loan EMI calculator, how does it work, and how can one use it to avail themselves of competitive home loan interest rates? 

A housing loan EMI calculator is an essential tool that helps with smart financial planning. It is a tool that can run complex calculations within seconds and provide accurate results every single time. Housing loan EMI calculators are easily available online and using them does not require one to pay any fee. The process to use the calculator is fairly simple: decide and enter your desired loan amount, the rate of interest you are being offered and the number of years you want to comfortably repay your loan. Once you enter these key inputs, the calculator will display your EMIs along with your total interest payout on your loan. 

Now, how does a housing loan EMI calculator help with smart financial planning? Read on to know. 

The Many Benefits of a Home Loan EMI Calculator

It Helps with Smart Financial Planning 

The housing loan EMI calculator is quick and accurate and users can try out various combinations of loan value and loan tenor until they figure out the right combination of these two key parameters, i.e., the combination that delivers affordable EMIs. The housing loan EMI calculator helps with smart financial planning by helping users figure out the loan amount they can afford to repay in a stress-free and fuss-free manner. 

It Helps with Home Budgeting 

A housing loan EMI calculator shares with borrowers their EMI figure beforehand, thereby giving them the chance to go through their home budget and get rid of all the unnecessary expenses so that they can comfortably afford their new EMI obligation. 

The Housing Loan EMI Calculator Helps Borrowers Score Competitive Interest Rates

Combine the use of a housing loan EMI calculator with a home loan eligibility calculator and one easily stands to gain the chance to avail themselves of the most competitive home loan interest rates. Every lender assesses a home loan applicant against their home loan eligibility criteria which revolves around diverse factors, such as the individual’s credit score, their income and debt-to-income ratio, job and income stability, etc. A home loan eligibility calculator tells borrowers the loan amount they are eligible for and the housing loan EMI calculator helps borrowers figure out the loan amount they can comfortably repay. When one uses these two calculators and applies for a loan amount they can comfortably afford and repay, the chances of being able to avail themselves of the most competitive or lowest home loan interest rates increase manifold. 

The Calculator Also Helps with Repayment Planning 

If becoming debt-free ahead of time is high on your priority list, the housing loan EMI calculator can prove useful. These calculators give users their amortization schedule, which the users can go through to figure out the ideal time for prepayment. If you time your prepayments well, not only will you become debt-free ahead of schedule but your total interest payout on the loan will decrease too. Similarly, a home loan EMI calculator can also help you figure out the right time for foreclosures. 

Over and above the benefits elaborated above, when an individual applies for a loan after proper financial planning, repayment becomes a breeze and chances of defaulting on loan payments decline. Thus, the use of a housing loan EMI calculator saves borrowers from late fees and penalties. Further, borrowers must also use this handy tool simply because it saves time, energy and effort. If you are looking for a good home loan EMI calculator, simply go to your lender’s website and search. All lenders host this essential tool on their website and they are all also free to use.