Tips For Using EMI Calculator For Home Loan

It is a basic online tool to calculate your home loan EMI accurately. Chances are, even if it seems easy to use, you may make some mistakes. That would have been okay if the mistakes weren’t so expensive. Therefore, fist timers and uninformed borrowers are requested to consider few useful tips. They will save precious time and money. You must know that there is a better way to complete home loan EMI calculations and avoid the common mistakes.

Tip#1 – Calculate factual numbers

Most first time borrowers have no clear cut idea about home loan principal amount and home loan interest rate. Cost of a property is a biggest part of your principal amount. But, processing charges and stamp duty are not too minor to consider either. Therefore, take all facets of your principal amount into consideration for precise principal amount.

Tip#2 – Consider a range of interest rate

Some borrowers, with a flawless credit score, may receive a home loan offer with advertised home loan rates in India. But, most don’t. Different financial and professional aspects increase the potential risk of lending funds to applicants. Most lenders, in such cases, increase the interest rates to cover their risk or deny a home loan. Therefore, you must consider a range of home loan rates. Your home loan calculations must include a possibility of higher home loan rates especially if your financial and professional state has a few challenges. This will allow you to consider a right property and buy it with affordable home loan in spite of financial challenges.

Tip#3 – Keep a safety net

Research shows that most Indians can save up to 30% of their monthly income easily. Your home loan EMI shouldn’t be beyond 30% of your monthly income. If it is higher than 30%, it can become a threat if you have to consider an unanticipated expense during home loan tenure. Therefore, conduct several home loan EMI calculations to identify a home loan EMI you can pay comfortably. It shouldn’t be barely manageable part of your income. This is vital to your financial health.

Tip#4 – Do not avoid HLPP

Include a basic term insurance into your principal amount during multiple home loan calculations. Home loan protection plan is a basic term insurance without any returns. Moist borrowers want to avoid this part because it increases your principal amount and home loan EMI. At the end of the day, people want to consider any strategy to save funds. But, you must include it because home loan protection plan protects you and your family in case of your sudden death. Otherwise, in spite of consistent repayments, your family may lose the home. This is a crucial support for your family. So, do not overlook at it as a supplementary expense. It is a vital part of your home loan indeed.

Use these tips for while making home loan calculations for best results possible.