Home loans involve a lot of money and can last for several years. As a result, it is important to ensure that you pick the best deal as it can save you a lot of money in the long run. An online housing loan calculator is a great way to pick the best loan.
Buying a home of your own is seen as one of the biggest achievements of life. Majority of the people achieve this with the help of a home loan. As the interest rates have fallen considerably in the past few years, a loan is an ideal way to fund your dream of owning a house.
However, it is important to know that home loans involve lakhs of rupees and can easily last for 15-20 years and more. As a result, borrowers should only pick the best loan program for this biggest purchase of their life. Online calculators are a great way to find the best deal on home loans.
Let us have a look at five valuable ways in which an online calculator can help-
- Know the Interest Rate
When it comes to a home loan, the most important consideration is the interest charged by the lender. Smallest of differences in the interest rate can help you save lakhs of rupees throughout the loan tenure. Your eligibility and the lender you select determines the interest rate on the home loan. Online housing loan calculators help you experiment with the interest rate to help you pick the right lender.
- Check Monthly Instalments
Apart from the interest rate, your monthly EMI is also a crucial factor when selecting a lender. When taking a loan, a borrower should ensure that they can afford the EMI easily. The calculator allows you to adjust the loan amount, tenure, and interest rate to accurately calculate the EMI. As a result, you can pick a lender whose monthly EMI you find most affordable.
- Know the Amount you can Borrow
The loan amount option of the calculator helps you know the minimum and maximum amount that you can borrow as a home loan. It is a simple way to know the maximum amount that you can borrow from a lender. Different lenders have different maximum loan limits, and you can use the calculator to find a lender who offers the amount you are looking for.
- Check the Loan Tenure
Just like the loan amount, loan tenure varies too varies between lenders. While some lenders offer loans for 20 years, many others offer them for up to 30 years. The calculator can be used to check the maximum loan tenure a lender offers. This eliminates the need for you to visit the lender to know basic details about the home loan.
- Know the EMI Payment Schedule
Some of the home loan calculator also offers a schedule of your EMI payments. Based on the loan amount, tenure, and interest rate you’ve entered, it’ll offer a complete schedule of the EMI payments including total EMI paid in a year, the break-up of the amount in principal amount and interest amount, and the closing balance year after year. This provides a complete picture of how your loan will work out over the years. You can select a lender whose payment schedule suits you best.
While such online calculators are self-help tools and their accuracy is not guaranteed, they are still very helpful when you are comparing the lenders for your home loan. Most of the lenders in India now offer such calculators to provide you with an overview of their offering. Use the calculator to make the selection easier.