10 Things to Know About Home Loan EMI

Crunching the numbers is normal, especially when it is to calculate your home loan EMI amount that will stay with you for more than 20 years, even 30 in some cases. It is very important to understand how loan EMI works, your interest rate, what kind of interest rate it is, and much more. This can be easily calculated using a home loan EMI calculator.

To consolidate your research, here are 10 important facts that you must know about the home loan eligibility calculator:

  1. It is a basic calculation tool that is free to use for everybody, and there’s no restriction on how often you can utilize it. It reveals to you the amount of money you’d need every month for the desired loan amount and tenure.
  2. There are three parts of each home loan EMI calculator: the loan amount, loan tenure, and the interest rate.
  3. Typically, a longer loan tenure (for about 30 years) results in a reduced sum of EMI. However, the longer is the tenure, the higher you pay in the form of interest.
  4. Using a home loan EMI calculator is very easy. You simply enter the loan amount, interest rate and the tenure in years. Furthermore, in practically no time, you will see the assessed EMI estimate on your screen.
  5. Home loan EMI calculators utilize a formula to ascertain your EMI, which is:

E = [P x R x (1+R) ^N]/[(1+R) ^N-1]

  1. You can change the credit term to perceive what it means for your EMI and settle on your home loan EMI accordingly.
  2. You may utilize an EMI calculator to compare interest rates of different banks and housing loan institutions and see which one is more reasonable for you as far as EMI and interest payable over the loan’s full term is concerned.
  3. By knowing your EMI, you can affirm whether you will pay it, which expands your chances of buying your dream home.
  4. With the interest rates being fixed, you can change the loan amount and tenure to find your EMI in different circumstances and pick the most appropriate mix.
  5. Apart from utilizing a home loan eligibility calculator to decide your EMI, it is likewise also to use a CIBIL Score calculator to decide your reliability.

Since a calculator helps you find out the EMI amount you will be paying for your loan, you will be in a state to decide your purchase in a more serious manner. CRED’s home loan calculator helps find out different ways in which you can have your dream home. Use this calculator to get an estimate of your home loan EMIs by applying various combinations of the loan amount, tenure, and interest rates and compare it with other institutions to get the best offer.