Tools Everyone Must Use for Easy Home Loan Calculations

real estate

Software is eating the world. Find and develop the right tools to give people the opportunity to do things better and quickly is the real target of technology. In the last few years, technology has brought innovation in several industries. Among them, the real estate sector has seen several changes (and improvements) in different fields, especially in the processes people work and consumer act and experience products.

Among
the various aspects, home loans are the metaphorical building blocks
for people who don’t have enough financial resources for buying a
house. In today’s age, housing loan facilities have become
increasingly popular, primarily because of their accessibility and
low home loan interest rates – thanks to COVID-19’s impact on the
economy.

Even
after facilities like availability of home loan online, one problem
persists among borrowers, i.e., calculation of home loan EMI,
eligibility and tenure. These three factors are to be considered
paramount when you apply for home loan. As we know that the best
things don’t come easily, home loan calculations often become a
daunting task. What’s the solution? Easy-to-use home loan
calculators.

Why
Is Home Loan Calculation Important?

Many
things go into a borrower’s mind while deciding housing loan terms.
Interest rates, tenure, EMI, principal amount, convenience,
paperwork, eligibility, etc. to name a few. These factors help the
borrower to assess their credit rating and compare different lenders
– only to find the most suitable NBFC/bank that offers easy home
loans.

Furthermore,
home loan calculators help the borrower explore different options
persisting in a home
loan
. For instance, if a customer has extra funds for home loan
prepayments, they can review the terms and conditions of the
prepayment scheme during the repayment period itself. A home loan EMI
calculator unravels the remaining EMI payments to assist borrowers
with prepayment calculations.

As
we know, manual calculations often result in human errors. Being
overconfident with self-made home loan calculations, especially when
they are erroneous, leads to regret, primarily when critical
financial decisions rely on them. This is why it’s safer to use
calculators while working with numbers like home loan interest rates.

Different
Types of Home Loan Calculators

There
are numerous ways by which your housing loan calculations can be made
easy and fast. Let’s discuss the most important of them all-

An
EMI is a monthly instalment designed to distribute the loan burden
over a fixed repayment tenure. For easy and quick EMI calculations, a
home
loan EMI calculator
is used. It takes inputs such as the
principal amount, applicable home loan interest rate and loan tenure
to showcase EMI as the desired output.

Since
different borrowers have different limitations, it’s imperative to
know your home loan eligibility. Instead of wasting time on assessing
the factors, you can use a home loan eligibility calculator. It
calculates the home loan amount that you’re eligible to borrow
based on your credit-worthiness.

Home
loan eligibility is calculated based on the net monthly income,
monthly EMI obligation, home loan interest, and tenure of the
borrower. As a result, the borrower gets the final eligibility amount
that they can ask for in a home loan.

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