By Ritu Sharma on Feb 15, 2019
Sharing is caring!
Buying a dream house of your own might be a daunting task for you with so many challenges. Choosing a house for yourself involves many tasks to be done before you finalise your decision of owning a home. It also requires in-depth financial planning for yourself when you plan to purchase a house of your own. But need not to worry now as one may have a bit relief by using home loan EMI calculators which are available online and using which home loan borrowers might know about the amount on their home loan EMIs they need to pay to their lender from whom the loan has been taken.
How to calculate your EMIs Using an Online Home Loan EMI Calculator:
The formula to calculate EMI is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Where, P= Principal loan amount,
R= Rate of interest,
n= Number of monthly instalments.
Assuming, P= Rs 8 lakh R= 10 percent per annum= 10/12= 0.83 per month, N= 84 months
EMI=((800000*0.83 /100*(1+0.83 /100)^84/((1+0.83 /100)^84-1))) = Rs. 13,281
The home loan EMI calculators are different from other types of loans. Thus, when you are planning to apply for a home loan, decide the need and make use of an available online loan aggregators platform to check your home loan eligibility and EMI amount and accordingly apply for the loan. Though using this online home loan EMI calculator, there could a be a slight variation on the EMI amount from individual to individual, EMI calculators will help you in ascertaining the approximate figures of the monthly installments you need to pay.
What are the factors affecting Home Loan EMI?
The below mentioned are the three main factors that help the home loan borrower to decide on what can be your home loan EMI pertaining to the loan amount you have applied.
1) Loan amount – This is the amount which you will be borrowing with your lender by applying the loan subject to some specific terms and conditions. Your home loan amount depends upon the value of the property. The higher the loan amount, the higher will be your home loan EMI.
2) The rate of interest – This is the interest charged on the loan amount which you have borrowed. In the early years of repayment, the interest component of your home loan will be a slightly higher and as the tenure comes to an end, interest component reduces and principal component increases. Lower the interest rate on your home loan, lower will be your EMI.
3) Loan Tenure – As long as the home loan tenure will be, lower be your EMI. Before applying for a home loan, borrowers should plan well in advance while deciding the home loan tenure. The tenure should be long enough so that one may easily repay back the loan amount applied.
Why Should You Calculate the EMI on your Home Loan?
Calculating the EMIs on your home loan has several benefits. Have a look at some of the benefits below:
1) Home loan EMI Calculators help the borrower to determine the amount of home loan to be borrowed
2) Assists in checking the home loan eligibility and interest percentage
3) It is essential to calculate the home loan tenure
4) To check whether you can afford to pay your home loan back or not
5) To decide between a fixed and floating rate of interest on your home loan
6) Getting a home loan will be much easier and faster if EMI amount has been decided beforehand
You may also like
“Financial goals take time and efforts. The right strategy can make it a lot easier.” Have you ever saved money? How much money you...Read More
Yes, the established image of loans that we have never let us feel anything positive about them. In fact, we take them for our...Read More
Are you a veteran who wants to buy a house in the U.S.? Then, you should opt for a VA loan program. Secured by...Read More
Buying a house is not an easy task, we all know why. If you are a first-time buyer with a poor credit score, you...Read More
An unfortunate truth in modern time is that many people have bad credit score but they are in need of loans and struggle to...Read More
When we are done fixing and decorating the other rooms that we have in our houses, it is now...
If you are operational in the telecom industry, you may need the facilities of an RF engineer for your...
There are three things you should know about your electric bill to save money. If you’re like me, you...
Despite the fact that Google keeps refreshes its highlights however keyword research is as yet one of the significant...
An unfortunate truth in modern time is that many people have bad credit score but they are in need...
American airlines one of the major airlines and its headquartered located in Fort Worth, Texas. It is also known...
The idea of a fitness or eating plan can seem all too cliche and for some people, this type...
Nowadays, SEO or Search Engine Optimisation is a key marketing strategy for businesses for all sizes. It is something...
Buying a house is not an easy task, we all know why. If you are a first-time buyer with...
Technological advancements are now widely visible; hence, the transport system has witnessed a marvellous breakthrough. For this very reason,...
You can have an enticing website loaded with the latest features, offering a remarkable experience to the users. However,...
Buying a house is not as easy as it seems. Before you start your hunt for a house, you...