Nailing the home loan calculations is now easy

You can use a home loan EMI calculator to take away the guesswork of home loan computations.

There is no greater pleasure in life than owning your own home. Your home is your palace and your refuge. However, buying a home in today’s cash-straitened times is difficult for many people. They wait for years and save money every month to buy a house – but real estate prices just keep climbing steadily and soon, the gap between savings and actual cost price becomes wider and wider.

In such a scenario, it is far more prudent to take a home loan to finance the house purchase dream. A home loan cuts down the time you would otherwise expend in saving money for many years. Besides, reputed housing finance companies offer quite affordable home loans that one can easily repay from their monthly income.

Eliminating the scepticism from home loans

Most people are afraid of taking home loans because they fear that the monthly repayment will strain their finances. This is a justifiable worry, especially for people with growing families. However, there is a simple way to surmount this anxiety. There is no need to wonder how much monthly repayment, or Equated Monthly Instalment (EMI) you have to repay after taking the home loan – just use a home loan EMI calculator.

The home loan EMI calculator is a handy tool that helps you compute the EMI payable vis-à-vis the desired loan amount, your monthly income, tenure/term of the loan and rate of interest being offered by the housing finance company. All you need to do is fill the numbers as prompted, to arrive at the EMI payable.

This calculation explains how the lending institution will compute your home loan and what your outstanding payments per month will look like.

Why using a home loan EMI calculator helps

This calculation helps put your financial health in perspective. All housing loan companies caution that the EMI must not exceed about 50% to 60% of your monthly income. An EMI higher than this can put considerable strain on your resources. There is no option but to repay the EMI every month, so it is a compulsory deduction from your income. At the same time, you cannot skip paying for monthly groceries, children’s education costs, monthly medical expenses, utility bill payments, etc. Hence, each category must be allocated enough resources.

You could consider taking a lower loan amount so as to pay a lower EMI per month. For this, you must take stock of how much money you have in savings, whether you can liquidate an asset to raise more capital, etc. Keep using the EMI calculator to arrive at the most desirable figures.

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