EMI Home Loan Calculator For Your Dream Home

Everyone wants to buy a home but most of us don’t have the kind of money it takes to buy a home just sitting in our bank accounts. A majority of home buyers need a  loan to fund their purchase. There are many financial institutes that offer home loans. How do you find the one that’s right for you – obviously, it’s going to be the one with the lowest EMI. That’s where an EMI calculator for home loan comes in.

What is an online home loan calculator?

Home loans are paid back in equal monthly payments for the entire duration of the loan. The EMI is influenced not only by the home loan rate but also the duration of the loan. Your personal credit score also matters as this will influence the home loan rates applicable to you. People with higher credit scores can get loans at lower interest rates. 

Calculating this amount manually with a home loan calculation formula can be slow and you could easily make a mistake. Since you will be comparing different loans with different interest rates and terms, the calculations will have to be repeated for every choice.

A home loan interest rate calculator automates the calculation, makes it quicker and minimizes the risk of error. It also makes it easier to compare EMIs due for different loans. To use an EMI calculator, you need to know your principal amount, the interest rate and the loan term. With the Aavas finance home loan interest rate, you can increase or decrease the number of years you have to repay the loan and see how it influences the EMI.



On average, the longer the repayment term, the lower the EMI. However, you should not that as the repayment term increases, so does the amount of interest paid. So, you ned to find a loan with an EMI you can pay back regularly to close the loan in the shortest period of time.

2 Ways to Lower Your EMI

Taking a home loan is a major commitment so you should take every opportunity you have to reduce your EMI. Here are 2 ways to achieve this.

Firstly, always choose a loan with a floating interest rate. This type of loan has an interest rate that fluctuates with the RBI benchmark rate. Floating interest rates are usually lower than fixed interest rates and they do not charge any penalty if you choose to close the loan ahead of time.

Secondly, make part repayments whenever possible. This is in addition of the regular EMI. The thing with loans is that the Emi for the first few years is mostly only interest. The principal is paid back later. Any prepayments made in addition to the EMI go towards repaying the principal. Hence, this reduces the overall EMI calculations. Alternatively, you can continue paying the same EMI and close the loan quicker. Before you sign on the loan papers, remember to check with the loan providers on the number of part payments permitted.

A Final Word

As long as you invest with a builder who ahs a good reputation, there is literally no downside to buying a home. Home loans are instrumental in helping you build your dream life. Find a loan that meets your requirements and can be repaid comfortably yet quickly. It’s the secret to making smart investments.

Original Source :https://timesproperty.com/news/post/buying-a-house-here-is-how-a-home-loan-emi-calculator-can-help-you-manage-your-finances-blid1527

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