A Quick Checklist to Determine the Most Suitable Housing Loan EMI

Buying a new home, a treasured dream, is not an easy task. Most people will depend on a housing loan for the financial support. However, the biggest aspect of this financial product is home loan EMI. You need to pay it every month to repay the entire sum over a course of 15 to 30 years. Smart people want to avail the highest principal amount without overburdening cash flow with EMI. Are you one of those people? If yes, then explore this article to discover how several factors impact EMI and how you can control them.

Interest rate:

If you have selected your dream home, then, you cannot lower your principal amount after a certain limit. But, that’s why; most people visit home loan calculators to find out the different home loan rates affect their EMI. In most cases, it leads to a quest to find the lowest home loan rates in India. But, smart borrowers make the following changes in their application for the best interest rates.

* Improve credit score
* Pay all dues every month
* Do not apply for a new credit card
* Find a co-applicant with a government job, if possible

Tenure:

The best way to lower home loan EMI is to visit any home loan calculator in India. Run home loan calculations to discover the best home loan tenure for you. However, you must take two cautions.

* Home loan tenure should be lower than your pending working years
* Do not estimate interest rate at its lowest in these home loan calculations

But, most home loan consultants recommend opting for the lowest possible home loan tenure. Then you can enjoy EMI-free life.

Repayment option:

Several businessmen and professions do not earn their best at the beginning of their careers. Some need to establish their practice. Others need to acquire the best clients. Few need to launch their products and services successfully. They can use a home loan calculator with repayment option to calculate the most suitable home loan EMI. Young and dynamic borrowers can consider step-up repayment option. It is a dependable choice for lowering the home loan EMI in near future. However, they will need to repay a higher amount in the after 10 and 15 years.

Prepayment rate:

If you have availed a home loan with floating interest rate, you can use your savings to prepay the loan. These prepayments can be utilised to lower your EMI or tenure. It will depend on your income and savings. You can use a home loan prepayment calculator to understand it well.

Home loan EMI calculations are complex. Smart borrowers run several home loan calculations through a home loan calculator to choose the lowest EMI. The best way to go about it is to keep a little margin for any increase in home loan rates. Then, you can control all factors throughout home loan tenure. That is the most suitable EMI for you. Let’s hope this article helps you make a right choice. All the best!