Back To Basics: How To Use Housing Loan EMI Calculator?

Housing loan EMI calculator is a very basic online tool. Anyone with basic understanding of arithmetic can use it. However, with the advanced technology available today, home loan calculations have become more complex and helpful. So, when you use online EMI calculator for home loan, you can take these details into account and plan your home loan repayments more accurately. Therefore you can check out most details about this online tool in this article.

Brief overview:

Housing loan EMI calculator can calculate more than your EMI. You can use it to determine affordable home, neighbourhood, carpet area, etc. You can use it to reverse calculate home you can afford rather than calculate monthly home EMI. There are some housing finance companies that offers advanced tool for home loan EMI calculations too. For example: You can use DHFL’s EMI calculator for home loan and tabulate amortization table. You can check the proportions of principal amount and interest. These details help you determine the lender you prefer for your dream home.

Advanced implications:

As you can see, this tool is very helpful in initial stages. However, it is very usable in advanced home loan calculations too. When you receive a home loan offer, you have a final principal amount and home loan rates. You can then fine-tune your home loan tenure based on monthly home loan EMI. Home loan tenure affects the total amount of interest considerably. You can plan your home loan package to manage it efficiently.
Pros and cons:

This online tool is very helpful in several stages of house loan approval. You can use it to finalise home, area, or carpet area based on EMI you can afford. You can also use it in the advanced aspects of calculations to see finer details. However, these details are very basic and cannot be considered as final. Your principal amount will include other elements such as stamp duty, processing charges, taxes, etc. Therefore, understand that this tool is not equivalent to actual facts. Use it like a guideline.

These are basic guidelines that have been helpful. If you understand realistic value and limitations of housing loan EMI calculator, then you will be able to use it well. You will understand when to use it and when to avoid it. Correlation between home loan tenure, interest rates and principal amount is best established by this tool. It will go a long way in helping you make right choices. At the end of the day, that is the goal for lenders as well as borrowers, right?