In 2022, buying a house without applying for a home loan is something that is almost unheard of. Most homebuyers choose from various home loan plans based on their budget and arrange for the required funds to cover their property purchase. While a home loan is an effective way of securing finances, it is also very important to ensure that the loan is affordable.
Borrowers who do not thoroughly plan on how they are going to deal with their home loan beforehand run the risk of facing repayment problems in the future. Not knowing the monthly instalments of a home loan before applying for one can lead to unnecessary complications at the time of repayment. To ensure that this does not happen, it is advisable to make use of a housing loan EMI calculator. This calculator is an online tool that displays a home loan’s monthly instalments. Based on the results, the borrower can then go ahead and apply for the home loan or look for a better option.
Here’s why using a home loan EMI calculator is so important:
- A home loan EMI calculator helps in picking out a suitable repayment tenure
Choosing a suitable repayment tenure is very important as this will determine the EMIs that the borrower would have to pay. If a borrower prefers to pay higher EMIs, they can opt for a short repayment tenure. Those who want to keep EMI payments to a minimum need to choose the longest repayment tenure available, which in most cases is 20 years. To find a tenure that suits their budget, a borrower should use a home loan EMI calculator.
- This calculator provides accurate results in no time
Manual calculations are known to take time and are also error prone. However, this is something that borrowers do not have to worry about when it comes to using a home loan EMI calculator. The results that are provided by the calculator are without any mathematical errors.
- It lets users try multiple combinations to find an ideal loan plan
A user can keep changing the values in the three fields while using a home loan EMI calculator. Making changes in the loan amount, repayment tenure, and interest rate would help in understanding a loan plan that is affordable. This is why using this calculator is so important before borrowers go ahead and apply for home loan plans.
- This calculator is very easy to use
All that a user needs to do is provide a few details to the home loan EMI calculator. These details include the home loan amount, interest rate, and repayment tenure. The calculator will then display accurate results in a matter of seconds. Thus, using this calculator is not at all complicated, easing a borrower’s way to the right home loan plan for them.
After learning about these benefits, it is no surprise why financial experts always suggest borrowers make use of this home loan calculator. Also, this tool is free to use 24/7 and available on most lenders’ official websites!