Smarter Ways to Calculate Monthly Home Loan EMI

The most well-known way to calculate your monthly home loan EMI is home loan EMI calculator. This simple and user-friendly online tool gets you a quick and relatively accurate answer. It can be especially useful for first-time borrowers. Because EMI calculator can undertake multiple home loan calculations in fairly short time. Thus, it explains the impact of principle amount and home loan tenure on EMI. But, you can also foresee the impact of a spike in floating rate on your home loan EMI. So, simple as it may look, home loan EMI calculator is a useful tool. But, let’s explore the smarter ways to calculate monthly home loan EMI.

Figure out cost of property in principal amount:

A principal amount is the total amount you borrow from a housing finance company. Any home loan EMI calculator in India cannot help you calculate it. However, it is the most important factor in a home loan calculation, isn’t it? So, understand your home loan eligibility with a visit to a home loan consultant. It will come down to security of income, age, co-applicants, etc. this complex calculation involves more details than your traditional home loan eligibility calculator. So, work it out. Get an amount that you can avail within your current financial and professional circumstances.

Enter this amount with a reasonable estimate of home loan interest rate and tenure. You will find out the realistic estimate of home loan EMI. Can you afford to set this much amount aside each month? If you can, this is a smarter way to nail your EMI. You can fit the rest of details within your financial means to buy a home.

Understand the influence of factors:

Home loan EMI can sway in several directions based on other aspects of a housing loan package.

For example; balloon repayment option can certainly simplify your life for first few years. Home loan EMI calculators in India do not incorporate repayment option into online calculation. But, several online articles provide necessary formulae to perform these home loan calculations independently.

But, here are the factors that will influence your home loan EMI. Figure them out as you identify the most suitable home loan package for your dream home.

* Repayment option
* Type of interest rate
* Down payment

These details are under your control. So, you can talk to your lender and tweak them in your favor. They can impact your EMI without changing principal amount, tenure or home loan rate. So, this is a smarter way to fine-tune your EMI profitably.

So, get smarter with home loan EMI calculator and other resources. This can be the best way to avail your dream home. All the best!