With numerous financial institutions offering home loans and a rising trend of availing these convenient financial products, it has become imperative to understand house loans and the requisite EMI calculations.
Learning how to use a house loan calculator is not at all a daunting mission, and a few pointers should be enough to equip an individual to handle it.
1. Loan amount: Firstly, one needs to get a detailed estimate of the required funds and also check out their eligibility. Accordingly, once the required amount is accurately estimated, the principal can be simply put in the calculator. Any prospective borrower needs to be cautious with the calculation of this principle since it is the base of the EMI calculation.
2. Interest rate: Next up, the applicant must check out the interest rates that are to be levied on the principal amount. Interest rates vary between financial institutions offering home loans. Also, it is just as important to choose between fixed and floating rates of interest.
3. Tenure: Well-established lenders have a flexible tenor facility where an individual can choose if the loan is to be repaid in short tenor or a lengthy one. Finally, putting in the tenure in the house loan calculator, one can avail their specific EMI figures.
It is important to note that a very convenient feature of an EMI calculator is that it also helps in comparing various schemes from different lenders.
