How to Plan your Financial Goals Effectively using a Home Loan EMI Calculator

If you have decided on investing in a property, there is no better time than now. With promising long-term growth of property prices while being able to secure ownership, it makes for a good prospect. Funding a new home purchase is not easy and this is where a home loan can assist you. Home loans help you with the immediate funding of your property while you make repayments through EMIs over a selected term period. To help with your financial goals and make you planning process easier, you should use a home loan EMI calculator. This online tool is great for an effective and efficient long term financial planning.

Read on to know how you can plan your financial goals using a home loan EMI calculator: – 

Learn of your future EMI payments – A home loan will affect your financial standing and your lifestyle as well, in the months and years to come. As a large chunk of your income goes towards paying the EMI, you must be well-prepared for what you must expect. A home loan EMI calculator is a tool that gives you a fair idea of the EMIs that you would pay in case of loaning a given amount. Knowing this well in advance will aid in planning your monthly-finances more efficiently.

Choose the right lender – An EMI calculator can be used to compare the offerings from different lenders based on the rate of interest and other aspects. Calculate the several offerings and arrive at the results for each one. This will help you pick one that is most suitable to fit your financial capacity.

Choose the right loan amount – Different financial institutions offer home loans at varying interest rates. Using an EMI calculator can help in trying the several combinations of interest rates and knowing of the most affordable one.

For example: If you think that you cannot afford a loan amount of INR 20 lakhs, you can reduce the principal amount and calculate the same to arrive at an amount that you can fit in your financial plan.

Pick the most suitable loan repayment tenure – It is absolutely important to choose a tenure that is right for you. An EMI calculator will help you understand the term that you should get. If you can pay higher home loan EMIs, a shorter tenure will work well. On the hand, a longer tenure will give your more time for repayment through reduced EMI costs.

A home loan is a big financial responsibility and you must make use of tools such as the EMI calculator. It is an indispensable tool for any homeowner as it eases the process of choosing from the home loan offers and understanding the repayment schedule.

Author: Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.