What To Look Out For In Home Loan EMI Calculators?

When people need a good home loan EMI calculator , they just Google it and use the first one available. Yet, the truth is that there are several EMI calculators out there. Some offer just random numbers as the EMIs while a few others are in fact more helpful than these and show a much better picture with respect to EMI payments for the years to come. Here is how you can find out which one is suitable for you:

* Amortization table

This table shows the home loan EMI calculations in detail. It shows the EMIs, the principal amount, the interest amount and the total repay amount for the tenure of the home loan. Home loan calculations are much simpler when you have all these numbers in front of you. Your understanding of the EMIs, the principal amount and the interest is simplified to the greatest extent due to the invaluable details in this table.

* Impact of the major factors

When you are running numbers through the home loan EMI calculators in India , you realise how home loan rates fluctuations affect your EMI payments. You can see how a long term for repayment can lower your EMIs. The truth is; any variation in the principal amount, loan duration and interest rates can change your EMIs. Calculate your monthly home loan EMI by changing these factors so that your EMI is 30% of your income. Several financial experts advise this proportion as a healthy long term choice since it is much easier to maintain and repay, even if the interest rates escalate.

* Charts

Several advanced home loan EMI calculators in India show the ratio of the principal amount and the interest rates. With multiple calculations, you can make out how to optimize your earnings against your EMIs and also how much more interest you will need to pay by extending the tenure. You will certainly end up paying much more in interest than the principal amount.

When you check these details along with your EMIs, you gain a better understanding of the changes that you need to make. Yes, it simplifies things and speeds up the calculations. In spite of all these details and insights into your home loan, it is a tool though. Like any other tool, it can be used intelligently for the maximum benefit. However, it won’t replace research, the decisions that you need to make about the clauses, the terms and conditions, the repayment options, etc. So, use it well.