How To Calculate Your Home Loan EMIs Accurately?

Whether you use an online home loan EMI calculator or offline, there are various vital factors that are included in this calculation. Therefore, it is important to understand all these factors before you make the home loan calculations and take the decisions based on it. You need to be very responsible about these calculations from the very beginning as you simply cannot take the risk of calculating monthly home loan EMIsinaccurately; right? Here is how you make your home loan EMI calculations perfectly.

Consider all the factors

You need to comprehend that the basic understanding of the home loan EMI calculator in India is simple.Your EMIs should be about 30 to 40% of your current income. However, you will need to know that you must make the down payment from your own pocket. Do you have funds set aside for that? You will need to pay considerable funds for processing charges, stamp duty, home loan protection plans or some other kind of term insurance etc. This will get added to your principal amount. Do you have any margin left for these expenses? You will have to understand that fixed and floating interest rates vary and so do your EMIs. Do you know that a shorter tenure means a smarter home loan? Get all your facts in place before you enter the details into any of the home loan calculators online.

Create the potential variations

Even after getting your principal amount and home loan tenure in place, you will need to anticipate several changes that may happen in your home loan interest rates. You must understand that till you actually sign on the dotted line; all are variables: interest rates, tenure, principal amount, repayment options, type of interest rates, etc. Hence, you will need to make several calculations to identify what works, what doesn’t, and what you can make work. For example: If you plan to opt for floating interest rates, will you be in position to pay for any variation in the EMIs? If you opt for the step up repayment option, do you have a strategy in place to afford it in future? Understand the repercussions of all the available choices.

Finalize the range

It is a must-do. When you are using a housing loan EMI calculator, you must ensure that you are aware of the largest home loan interest rates that you can afford, the shortest home loan tenure that you can plan for etc. Know your range of choices before you consider any properties or lenders.