Are The Home Loan EMI Calculators Beneficial For First Time Borrowers?

This seems to be a yes/no question. In other words, a simple yes or no should suffice, right? However, the right answer will depend upon how a first time borrower chooses to use it. Use an ideal home loan EMI calculator well and it will be a great financial tool for newbies too. Make typical mistakes that the first time borrowers are known to make and you will regret its use. Therefore, you can use the EMI calculator smartly and get the best home loan in India.

What you can benefit from?

First time borrowers are hardly aware of the intricacies of a home loan. Opting for a home loan calculator is a great way to familiarize with its nuances. Do you know the carpet area that you can afford? Have you considered the type of property that you can pay for – 1 BHK, 2 BHK, 3 BHK, duplex, or a villa? There are several questions and your finance is the right place to look at for these answers. Your monthly cash flow will decide how much you can afford. So, calculate the monthly home loan EMIs for different options and the home loan calculator will certainly provide renewed insights into what you can afford.

What you should watch out for?

Most first time borrowers fall into some likely pitfalls. These mistakes are not exactly huge; but the consequences can be dire indeed. So, do not take any of the advertised numbers or facts on face value. The numbers you enter in the home loan EMI calculator are vulnerable to change. From interest rates to processing charges, all get customized. Therefore, making home loan calculations based on certain assumptions can prove to be costly. For example: You may not qualify for the lowest interest rates. The cost of property is not the principal amount for your loan. Home loan EMIs that you can pay today may not be the EMIsthat you can afford tomorrow. So, use the home loan EMI calculator with a hint of caution. Last but not the least, do not assume that that you will meet the eligibility criteria for the housing loan you seek. There are too many details involved.

Conclusion:

Your home loan calculator can be your best ally or worst foe. But, it is always in your hands to make the best use possible. Thus, this is a great financial tool that you can use to figure out your way in this new territory or make mistakes in an unanticipated way. Wrong assumptions about interest rate and principal amount will make every home loan EMI calculator a threat instead of a friend. Therefore, stay proactive, ask the right questions and use the housing loan EMI calculator efficiently to get the house loan you need.