5 Common Faults To Avoid When Using The Home Loan EMI Calculator In India

A lot of people either visit a bank’s or a housing loan company’s website to use their home loan calculator in India . You cannot overstate the importance of avoiding the typical mistakes.

Enter wrong principal amount

If you fail to include the ancillary costs, you are not entering the right principal amount in your home loan calculator in India. It’s simple. Stamp duty varies from city to city. The processing charges bulk up your final amount too. Several banks and housing finance companies in India insist upon some kind of term insurance nowadays. Are you prepared for these add-ons and their influence on your EMIs? When you look at the properties that will cost you up to 30% of your monthly income as your EMIs, it can be a right choice, unless these expenses overpower your monthly budget. So, enter the factual amount in an ideal home loan calculator to understand your financial situation better.

Take details for granted

Most of the banks and housing finance companies have the standard home loan interest rate in their home loan EMI calculators. Yes, these are their best rates and some borrowers do get their home loans on those rates although all of them don’t. The home loan interest rates offered to you will depend up on your repayment ability in terms of assets, monthly income, employer, credit score and more. So don’t assume these details as accurate and final.

Fail to create the range of choices

Most people calculate their monthly home loan EMIs; if it seems manageable, they accept the home loan. The home loan process is very slow and can be exhausting. So, most borrowers rush into the decision without anticipating that the interest rates may increase tomorrow. So, you must create the range of home loan tenure and interest rates that you can afford for the foreseeable future before accepting any offers.

Skip down payment planning

Most of the borrowers do not plan for the down payment that they will need to make from their own pocket. If you do not have funds handy, what will you do? Some take personal loans, which affects the credit score badly and you may not get the best home loan interest rates possible. So, without the down payment planning, you are certainly not in a position to move forward to complete the acquisition of the property. It is an important part of the home loan calculations that most people ignore and land into trouble as the housing loan EMI calculations are unsuitable for your monthly cash flow.

Go job-hopping

Your employer affects your home loan interest rates. The employers of large and dependable companies get better rates assuming that you will keep drawing a good salary for your efforts. As you go job-hopping, you may not always have an employer; who is deemed as dependable by the lending community. It will affect your home loan approval and interest rates too. This,in turn, will further have a bearing on the home loan calculations that you make with the EMI calculator.