How to Evaluate a Home Loan Offer With An Emi Calculator?

When potential borrowers submit home loan application, they are eagerly waiting for a home loan offer. It is a step closer to their dream home. However, when they actually have a home loan offer letter, it can be a really difficult decision for several reasons. Firstly, a borrower must verify if it is a suitable deal. Secondly, a borrower will need to look for any hidden costs and expenses that may cost him precious resources. Thirdly, any borrower cannot anticipate it and when he will receive another offer should he decline this one. Thus, a borrower must use all resources at his disposal to vet housing loan offer thoroughly.

Calculate monthly Home Loan EMI

The most important aspects of a home loan offer are interest rate and EMI. In most offers, home loan EMI seems affordable enough. However, you must check how any fluctuation in home loan interest rates can affect home loan EMI. Have you chosen fixed rates or floating rates? Either way, they are vulnerable to spike, based on real estate market, economy, RBI regulations, etc. So you must run sufficient home loan EMI calculations to identify the probable EMI fluctuations you may need to pay. Its long-term affordability is as important as EMI at the current home loan rates.

Package it well

A borrower can customize few aspects of a home loan package after accepting the offer. These factors can not only influence EMI but also affect other factors such as home loan tenure. You can select a specific type of home loan rate, repayment option, and home loan tenure. So, you must take a look at the housing loan offer and look for the factors that you can improve the affordability of home loan EMI. You can use different home loan calculators such as balloon repayment calculator. These types of home loan EMI calculations will enable you to plan your finances well.

Negotiate the details

It is an accepted practice in home loans in India. Few aspects of the home loan package can be negotiated with the relationship officer. Consumer-friendly organizations like DHFL are known to be understanding and accommodating. However, a borrower does need to negotiate with right financial understanding. After you receive a home loan offer, you can use resources like EMI calculator to figure out what you want. Thus, you can negotiate with relationship officer. This will improve your home loan agreement and help you select the loan more confidently.

So, use home loan calculators and other resources while considering a loan offer. You will understand loan offer and all its long-term and short-term implications. Then, you can make the best choice as calmly as possible.