Home Loan EMI Calculators are making life easy
Lenders offer various types of home loans to meet the various needs of the home buyers. But, before you choose a particular loan it is important to know the important components of it especially the EMI. Home Loan EMI calculator helps you to determine the EMI that is the equated monthly instalment that is to be paid to the bank so that you can obtain legal possession of the house.
The borrower has to pay a certain amount each month to the lender for a certain period till the outstanding loan amount is cleared. A certain EMI amount has to be paid before a fixed date each month till the whole loan amount is repaid.
Home loan EMI calculator will help you determine how much EMI you will have to pay towards the loan each month. It is important to know this information as you need to plan your finances well in advance till the loan tenure is over and to make sure that the loan amount is paid off completely by then. There is no way that you can miss out on the EMI due date and if you do miss it for subsequent months, then the bank will take over the house.
Home loan EMIs are determined by four major factors; the principal amount, rate of interest, loan duration and the method of computation. The method of computation is either the annual reducing method, monthly reducing method or the daily reducing method. The formula for calculating EMI is:
EMI = [P x R x (1+R) to the power of n] / [(1+R) to the power of n -1],
where;
P= principal amount
R= rate of interest
N= number of monthly instalments.
The manual calculation to derive the EMI amount is too hard and hence the borrower can make use of the online loan calculators to avail the EMI amount. The borrower can choose a fixed or a floating rate of interest. The fixed rate of interest is charged throughout the loan tenure and the EMI amount is constant. Floating rate of interest varies with the market lending rate and is prone to fluctuations. The EMI amount decreases or increases depending on the interest rate movement. At times when the EMI amount increases, the lender's offer the borrowers to increase the tenure at a constant EMI to those who do not wish their EMI amount to be increased in case of higher interest rates.
It is quite easy for the borrower to use online emi loan calculators. Before you decide on a certain home loan being offered by a certain lender, check how much EMI you would be paying each month. All you need is to fill in the following details:
Loan amortization table will show the break-up between the interest component and principal component of the particular EMI payment. This will give you a clear idea about the period of payment, interest and principal payments and the outstanding loan amount over the entire loan period. This is an important and helpful information if you wish to pre-close the loan before its tenure.
This information is helpful for you to decide the tenure for which you want to take the loan for and if you can afford the EMI each month without compromising on the other finances of your daily life. You will have the information at your fingertips at the comforts of your home and be prepared to make required financial adjustments before you opt for the home loan. You can make subsequent investments that will let you help with your finances and help repay the instalments with ease.
The borrower has to pay a certain amount each month to the lender for a certain period till the outstanding loan amount is cleared. A certain EMI amount has to be paid before a fixed date each month till the whole loan amount is repaid.
Home loan EMI calculator will help you determine how much EMI you will have to pay towards the loan each month. It is important to know this information as you need to plan your finances well in advance till the loan tenure is over and to make sure that the loan amount is paid off completely by then. There is no way that you can miss out on the EMI due date and if you do miss it for subsequent months, then the bank will take over the house.
Home loan EMIs are determined by four major factors; the principal amount, rate of interest, loan duration and the method of computation. The method of computation is either the annual reducing method, monthly reducing method or the daily reducing method. The formula for calculating EMI is:
EMI = [P x R x (1+R) to the power of n] / [(1+R) to the power of n -1],
where;
P= principal amount
R= rate of interest
N= number of monthly instalments.
The manual calculation to derive the EMI amount is too hard and hence the borrower can make use of the online loan calculators to avail the EMI amount. The borrower can choose a fixed or a floating rate of interest. The fixed rate of interest is charged throughout the loan tenure and the EMI amount is constant. Floating rate of interest varies with the market lending rate and is prone to fluctuations. The EMI amount decreases or increases depending on the interest rate movement. At times when the EMI amount increases, the lender's offer the borrowers to increase the tenure at a constant EMI to those who do not wish their EMI amount to be increased in case of higher interest rates.
It is quite easy for the borrower to use online emi loan calculators. Before you decide on a certain home loan being offered by a certain lender, check how much EMI you would be paying each month. All you need is to fill in the following details:
- The loan amount that you need to borrow.
- Interest rate that charged for the for your chosen loan scheme.
- The loan period or tenure.
- Processing fee, if the lender is charging any to process your loan.
Loan amortization table will show the break-up between the interest component and principal component of the particular EMI payment. This will give you a clear idea about the period of payment, interest and principal payments and the outstanding loan amount over the entire loan period. This is an important and helpful information if you wish to pre-close the loan before its tenure.
This information is helpful for you to decide the tenure for which you want to take the loan for and if you can afford the EMI each month without compromising on the other finances of your daily life. You will have the information at your fingertips at the comforts of your home and be prepared to make required financial adjustments before you opt for the home loan. You can make subsequent investments that will let you help with your finances and help repay the instalments with ease.