A Fact Sheet about Home Loan Calculations In India

Be it a home loan EMI calculator or extensive excel sheet, home loan EMI calculations are a challenge. But, certain facts, if known, can help a borrower see the bigger picture in a better light. Certain information can redefine the course of home loan calculations. So, which facts are they? Let’s explore them in the fact sheet below.

EMI will determine where you can afford to stay

Several people want to buy their dream home. But, with current real estate prices, your income decides the home you can afford to buy. A home loan eligibility calculator defines the maximum amount you can borrow. But, an EMI calculator will decide which you can afford to pay along with other liabilities. E.g.: daily expenses, utility bills, income tax, etc.

Home loan EMI is the key factor in all home loan calculations

Most banks offer a home loan EMI, which is 30 to 40% of borrower’s monthly income. At times, younger borrowers with lesser obligations prefer to pay higher percent of their income as EMI. Use a home loan calculator in India to fine-tune the factors in home loan package. Extend the home loan tenure if you have to. But, finding an affordable home loan EMI is vital for making month-on-month payments comfortably. If you happen to save up, then you can make part prepayments. But, do not select a home loan EMI that you cannot afford during income tax or Diwali season.

Select a smart package as every factor can influence your home loan EMI

Every other factor will come to revolve around how you calculate your monthly home loan EMI. You can change interest rate or tenure in a home loan EMI calculator. That’s easy and obvious. But, every factor cannot be included in home loan calculators of India. Do you know longer home loan tenure will reduce your monthly EMI but increase your total interest payable? Do you want to opt for hybrid home loan rates? Are you considering a step up repayment option since initial EMI will be lower? What are the prepayment charges, foreclosure charges, and default penalty? Figure out the impact of these factors on your home loan EMI.

So, the facts in a fact sheet influence the home loan calculations and primary home loan related decisions. So, make numerous calculations to fine-tune the details. Select a pragmatic yet attractive home loan package for your dream home. Any effort during the home-hunting and loan-searching phase gets you closer to dream home and best loan, right?