Vikas Bafna, a resident of South Kolkata wants to purchase a home. He is looking for home loan to finance his dream. Like most of us, he is not fully aware of the math of home loans.
How he can do the repayment maths?
What will be his Equated Monthly Installment (EMI)?
Like Vikas, most applicants are unable to comprehend the math behind their EMI calculation. In this context, the best way to calculate home loan EMI is home loan calculator.
Let’s have a glance on 10 important things about Home Loan calculators –
1. Home loan EMI calculator is a self-help tool that helps you calculate your equated monthly installment independently.
2. EMI calculator calculates your home loan eligibility, EMI, and tells you how much of your property value can be financed.
3. The loan calculator calculates the EMI on the basis of the following formula –
Here E stands for EMI, P stands for Principle, R means Rate of Interest every month. N indicates the tenure of home loan
4. Apart from personal and professional details, you need to provide only few basic loan details such as how much you wish to avail as home loan? What is the repayment period? What is the property value? EMI can be calculated with all these indispensable information
5. EMI home loan calculators are available for use on the website of the financial corporations and banks.
6. Sophisticated EMI calculators take into account running loan EMI, local, state taxes and insurance.
7. Your input information can be tracked in loan agreement
8. The home loan EMI calculator tells you about your Amortization Schedule. An amortization schedule can be explained as how your monthly EMI will be segregated between paying off principal amount and interest and what your remaining balance of home loan will be at the month’s end.
9. It should be taken into consideration that EMI is calculated on the basis of fixed interest rate. However, in case of floating interest rate, EMI fluctuates on the basis of prevailing market rates and change in base rates.
10. Leveraging home loan EMI calculator, you can crunch the numbers and figure out what home loan package is best for you.