How does a Home Loan EMI Calculator Works

Posted by arwindsharma on July 30th, 2016

You would want to buy a home that fulfils your family’s dreams, while keeping the cost affordable. In most cases, you’d need to get a Home Loan to be able to afford your dream house.

A Home Loan is a great idea, but there are just too many options to choose from. How do you pick the loan with the ideal amount, tenure, and EMI?

This where an EMI calculator comes into the picture.

The Home Loan EMI Calculator

An EMI (Equated Monthly Installment) is the amount you have to pay each month towards the loan. This is calculated using a slightly complicated formula; if you are doing this by yourself, you’ll need some math skills and a good calculator.

You don’t need to do all the math yourself, though. With Internet access and mobile apps, you can get automated EMI calculators to do the work for you.

Looking at Wider Options in Lenders?

Not all Home Loans are the same; interest rates may vary, flexibility in tenures may differ, and some lenders might offer to cut prepayment charges. How do you choose the lender that suits your needs best?

You can use the Home Loan calculator, usually available at financial portals and financial marketplace websites. These compare loan offers from different banks to provide you with a list of options. Simply head to the lender website, and input the required parameters; the home loan calculator computes the EMI amount for you.

How do These Work?

The typical EMI calculator takes in parameters like the loan amount, tenure, and interest rate, and advanced parameters like whether your are paying any advance EMIs.

Other input options include the home value, down payment, your ideal loan amount and processing fee, whether you are looking for home insurance along with the loan, and the fees and charges the lender might levy. You can even factor in prepayments on the loan.

Taking in all these from you, the Home Loan EMI calculator pulls up details of loan offers from various banks and NBFCs. It calculates the loan amount and EMI breakup, and then presents the details regarding these—and interest rates—to you.

The Home Loan calculator can also give you the full amortization details on the offers you choose.

You can even factor in insurance, and homeowner expenses like property tax, and monthly maintenance cost. These can help you in deciding whether to go ahead with a home purchase at the current time, or to stick to your rental home and buy at a later date when you have enough savings to meet homeowner costs.

Home Loan Decisions Made Easy by Home Loan EMI Calculators

These tools greatly reduce your work when you’re looking for a loan. They compare a large number of offers, and use your parameters to list the ideal offers for you. They can also display other details like the loan schedule over the whole tenure.

Now all you have to do is to choose the offer that suits you, keep the documents required for Home Loan handy, and approach the lender for the loan to speed up the process of financing your home.

Trader On Chart - Position Size Calculator and MT4 Trade Panel
The Fastest Way to Calculate Lot Size and Open a Trade on Your MT4 Platform is by using the Trader On Chart MT4 trade panel.
Madison Liquidators
Specializing in providing affordable office furniture to businesses and home owners. We ship desks, conference tables, filing cabinets, cubicles, office chairs and more throughout the lower 48 states!
Laserless Tattoo Removal Guide
Free Video Reveals Shocking Method To Remove Tattoos Naturally and Safely From Home And Without Laser!
BTV Music Production Software
BTV Professional Music Production Software works as a standalone application or with your DAW as a VST or AU plugin (optional). If you are inspired, BTV will help you get your ideas out faster.
Belly Dancing Course
The #1 Home Belly Dancing Class With 50 Video Lessons That Guarantees Results!
How To Draw Cartoon Animals Step by Step
This incredible method works for ANYONE… whether you’re already good at drawing and want to take your skills to the next level, or if you’ve never even drawn before but have always wanted to try.
Create Passive Income with Dividends - 100% FREE Newsletter!
Learn how to create passive wealth by investing in dividend-based stocks! These stocks will help you create a steady income that you can rely on for years to come!

Master Mentalism | How To Do Mentalism Effects & Magic Tricks.
Magic Tricks Revealed | How To Do Mentalism And Magic Tricks Like You See On TV By Criss Angel, Derren Brown & David Blaine.

Ukulele Lessons - How to Play the Uke!
Learn to play the songs you love, easy video lessons for beginners. Instructions for strumming, chords and more.

Advertise Here