The decision to secure homeownership is a major life decision. While it carries with it immense joy, it is easy to get swayed away by the feeling of accomplishment. It is extremely important to base your decision on practicality. Funding the purchase is no easy feat and you may have to take a home loan. Fortunately, home loans are offered through lucrative deals by leading financial institutions.
Safe to say, home loans are the metaphorical building blocks to attaining a dream home. This is especially true for people who do not have the financial means to own a home. The financial product eases the journey by providing you with the required financial resources to cover your purchase.
Over the years, home loan facilities have grown to be extremely popular among the rural and urban population. This can be primarily credited to the fact that is now widely accessible. Furthermore, the COVID-19 pandemic has significantly impacted the economy to lower the interest rates offered on home loans. While all things are great, a major issue that home loan borrowers face is making home loan calculations. This is an important step when availing a home loan as it prepares you for your future financial obligation.
Fortunately, technology has advanced and there are several tools in place for borrowers to enjoy a smoother loan procedure. An effective innovation is the different types of home loan calculation tools. The tools reduce your effort and ease out the daunting task of calculating your home loan EMI. Read on to know more about the importance of home loan calculation and the best way to get through the process.
Home Loan Calculation
As a borrower, there are several aspects of a home loan that cross your mind when deciding on the most suitable deal. These factors include the home loan tenure, rate of interest, principal amount, eligibility, EMI costs, processing, service and much more. They help you evaluate your profile as a borrower and understand your capacity to manage debt.
Additionally, it also helps you pick the best financial institution to lend you the loan.
Home loan calculation also helps you explore the different suitable opportunities from the wide array of options available. The calculations let you unravel the best possibilities for your given available funds. For instance, a borrower who has just received a bonus fund can evaluate if he/should direct the funds towards making a prepayment on the loan. The possibilities that open with a home loan calculator are innumerable.
Making manual home loan calculations leaves room for errors. Financial decisions are crucial and the smallest mistake when making your calculations can lead to a lifetime of regret. For this reason, it is best to use home calculation tools such as those offered by Finserv MARKETS. The calculators are free to use and render you precise results.
Home Loan Calculation Tools
There are different tools that you can use to make home loan calculations. However, here are the two most important tools that you must essentially use before making your home loan decisions.
Home Loan Eligibility Calculator – Every borrower is different and so are his/her limitations. This aspect makes it imperative to understand your eligibility before you apply for a home loan. The home loan eligibility calculator lets you assess your profile without the hassle of manually listing out the factors. Based on your creditworthiness, it lets you know how much money you are eligible to borrow.
When using the home loan eligibility calculator, you must enter your net monthly income, rate of interest rate, loan tenure, and affordable EMI. The tool gives you the total loan amount that you may be eligible for after calculating these essential aspects.
Home Loan EMI Calculator – EMI or Equated monthly instalment is the amount you pay towards repaying your home loan. It comprises the principal and payable interest amount. To use the EMI calculator, you must input the principal amount, applicable home loan interest rate and loan tenure. The tool then showcases the payable EMI.
Now that you know how to effectively calculate your home loan, visit Finserv MARKETS to get the best deals on your home loan.
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