How to Calculate Home Loan EMI?

People borrow funds from a housing finance company for their dream home all the time. Some worry about every aspect of housing loan while others sign on the first offer they receive. But, smart borrowers focus on few key factors that will influence their home loan EMI. Why is that? A home loan EMI has always been the most important aspect of the home loans for the most borrowers. Every borrower needs to fit it in along with monthly income, expenses, and pending income. It is a delicate balance that needs to be maintained. So how do you calculate monthly home loan EMI?

Housing loan EMI calculator:

You can use an EMI calculator. It is a useful online tool for home loan EMI calculations. However, your calculations will be different during research, application submission, and home loan offer. But, this simple and quick tool can be really handy choice for borrowers indeed. It is especially applicable for people with floating home loan rates. Certain advanced tools offer an amortization table with EMI calculator too. This table is a perfect way to see the broader picture of your home loan principal amount and interest too.

But, it may not the most useful tool if you have opted for any of the repayment options. Repayment options have a unique influence on your home loan EMI. A basic online EMI calculator for home loan is not equipped to handle these advanced calculations. You need an advanced solution.

Manual home loan EMI calculations:

You can use a basic calculator or excel sheet to extrapolate the repayments as per your repayment option. You will need an appropriate mathematical formula to perform these calculations either way. This will give you a realistic understanding of your repayments. This is the most important calculation for specific repayments option like a balloon repayments.

There is no denying that home loan interest rates and repayment options can affect a delicate balance of income easily. So, in order to continue repaying the loan, you will need to calculate monthly home loan EMI ahead of time. However, few EMI calculators for home loan can include repayment option into calculations. You can use their amortization table for understanding the transient nature of EMI.

However you choose to calculate, you must know your EMI and gather requisite funds each month to meet the requirements. It will allow you to stay prepared and ahead of the curve. Thus, enable the borrowers to enjoy their dream home in stress-free style. At the end of the day, that’s why people avail housing finance, right?