Home Loan EMI and Calculations Guide

A first-time borrower needs to learn a lot about home loan EMI calculations. Most first-time home loan borrowers cannot fathom the importance of home loan calculations. But, when anyone runs simulations to calculate monthly home loan EMI, it needs to be more than a number. Your month-on-month cash flow for next 15 to 30 years depends on it. Let’s explore the concepts, online tools and everything else you need to know about it.

Concepts:

Fancy online tools like housing loan EMI calculator are easy to access. They do offer tangible information too. But, first time borrower needs a lot more information about home loan to make these calculations. You need to understand the basic concepts.

* Types of interest rates
* Types of repayment options
* Basic home loan terms like prepayments, default, foreclosure,

You must familiarise with concepts influencing principal amount, interest rate and home loan tenure. That is the right start.

Online tools:

Several housing finance companies in India offer home loan EMI calculators to help you take care of the basics. But, here are some significant online tools for accurate home loan EMI calculations. You may not need all of them right off the bat. But, isn’t it better that you know them and use them when you need to.

* Housing loan EMI calculator with amortization table
* Housing loan eligibility calculator
* Housing loan EMI calculator for different repayment options
* EMI calculator for housing refinance

These advanced tools can used as and when needed. But, any first-time borrower will get all the information he needs with DHFL’s online tool. It works really well for the most part.

Facts you need to know about home loan EMI calculations:

A lot of details of the home loan agreement cannot be included in a home loan EMI calculator . It is one of the reasons why you need to run several simulations. It helps you understand the impact of different possibilities on your EMI. So, it may seem simple. But, you need a holistic understanding of this financial product. Then, you can choose the one you can afford for next 30 years.

* You must understand how other factors affect your home loan EMI calculations. E.g.: repayment options, prepayment rates, floating or fixed interest rate fluctuations.

* Do not accept a proposal with home loan EMI higher than 30% of your active monthly income.

* Prioritize home loan EMI in your monthly budget to meet your financial obligations every month.

* The principal amount of home loan has several additional expenses. Do take them into account while finalizing the property.

* Are you considering floating home loan rates? Then, do not presume that home loan rates will remain favourable. Ensure your income does have a space to pay potential increase in EMI.

Take these insights to make better decisions from this guide and it will be a worth your while.