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-
- EMI Calculator
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.
- Eligibility calculator
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.