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
Are you struggling with your house? Do you hate the sight of your house? Is it damp, too small and clumsy, or has a...Read More
Are you thinking of buying a home? Do you want to apply for a home loan program to get financial aid? You have chosen...Read More
One of the biggest things that homebuyers are concerned about when applying for a home loan program is the mortgage rate – a rate...Read More
Have you always dreamt of buying the perfect house in the safest neighborhood since your childhood? Purchasing a house transports a person into an...Read More
Buying a house is the long-cherished dream of many Americans. But most of them fail to realize this dream due to lack of finance....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...
What would be more cheerful in your outdoor space than enjoying the vibrant colours and the pleasing aroma of...
The engine is one of the vital parts of your car that works as the main source of power....
There comes a day in a fortnight or a few in a month, when you are not in a...
When you do not own a car, have lost your driving license or cannot drive, it is always a...
Security is one of the primary concerns that every homeowner has on their mind these days. Be it your...
Ritu is an Indian Blogger.