Here's how a Home Loan calculator can make your life easy!
08 December, 2022
A Home Loan It helps you shoulder the burden of the cost of property and enables you to pay back the borrowed amount over time. However, you must track the Equated Monthly Instalments (EMIs) due each month. You also have to ensure that you have the financial capacity to pay the monthly EMI. Calculating the amount due before you apply for the loan and even during the tenure can become challenging. This is where a Home Loan calculator comes in handy.
What is a Home Loan calculator?
Ideally, before applying for a Home Loan, you would want to check if you have the financial standing to meet the monthly EMIs. You can calculate the amount due each month and the total sum payable manually. However, when you do so, it can become complicated and leave room for error. Plus, it can be a time-consuming and tedious process.
Hence, most people opt to use a Home Loan calculator. A Home Loan Calculator is a tool available online for free. It has been designed to conduct complex calculations on your behalf. Since it is computerised, you can rely on the calculator to give accurate figures. While Home Loan EMI calculators help you determine the monthly amount due, a few calculators go a step further.
They also display the principal amount, interest, and the total Home Loan amount payable along with the EMI due. These calculators provide a breakup of your loan amount that comes in handy while choosing the right Home Loan. Plus, this sort of information assists you in forming a financial plan for the repayment of the Home Loan.
How to use a Home Loan calculator?
You can use a Home Loan calculator to calculate the EMI due along with the total principal and interest payable. Using a Home Loan calculator to do the same is quite straightforward. All you have to do is visit the webpage and plug in the details required. Usually, Home Loan calculators ask for details like the loan amount, tenure, and rate of interest. This is for the following reasons:
Loan amount: It is the borrowed amount and is considered to be the principal upon which the interest will be calculated.
Interest rate: The rate of interest is usually set by the lender and can either be a fixed rate (same throughout the tenure) or a floating rate (changes with market fluctuations). Your EMI payments consist of the principal amount due along with interest. Thus, you have to plug in the interest rate to get accurate figures from the calculator.
Tenure: Your Home Loan tenure also plays a significant role in deciding the EMI amount due. If you choose a shorter tenure, your EMIs will be on the higher side, but the overall interest payable will reduce. On the other hand, if you choose a longer tenure, you will have to pay lowered EMIs, but the overall interest will increase. The loan term affects almost all sections of results provided by the calculator and is thus crucial information.
Once you input these details, the calculator will do the math and provide accurate figures within seconds. Along with a numerical figure, calculators also tend to offer visual representation via bar or pie charts to help improve your understanding.
If you are looking to apply for a Home Loan, you can use the HDFC Bank Home Loan. HDFC Bank also offers Home Loans that support you in the purchase, construction, repair and renovation of your home. With attractive interest rates, easy EMIs, and Home Loan balance transfer facilities, HDFC Bank helps you to live in your dream home.
Need to know more about home loan rules and regulations, read this page.
Apply for a Home Loan at HDFC Bank today by clicking right here!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Home Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
