Home Loan Calculator – Definition, Mechanism, And Top Benefits

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Home Loan Calculator Definition, Mechanism, And
Top Benefits
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• A home loan is a vital part of most house owners
  lives. It simplifies house construction or
  purchase by providing funds of up to 90 of the
  propertys prevailing market price. A home loan
  calculator, also known as home loan EMI
  calculator, lets you find the real cost of
  availing of a home loan and enables you to stay
  prepared.
• The following sections elaborate on the various
  facets of a home loan calculator and explain its
  mechanism.
• What is a Home Loan Calculator?
• A home loan calculator is a simple online tool
  that allows you to calculate the cost of a home
  or housing loan. It displays the EMI you will pay
  monthly after applying for a home loan.
• Home loan EMI consists of two components
  principal and interest. Principal refers to the
  amount you seek from your lender to purchase or
  construct your dream home. The principal depends
  on your debt-to-income ratio, usually 50. So, if
  you earn INR 50,000 per month, the EMI amount
  cannot exceed INR 25,000. And if you have other
  loans, the amount will be lesser. So, the
  principal amount is determined according to your
  EMI payment capability, which depends on your
  monthly income.
• The second component of home loan EMI is the
  interest. Interest refers to the extra amount
  (charge) you have to pay to get the loan amount
  in your account. Since the rates change often,
  you must check the home loan interest rate today
  before using a home loan calculator.
• Let us now understand the mechanism of using a
  home loan calculator.

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• Home Loan Calculator The Mechanism
• Modern day lenders offer various online tools to
  simplify home loan calculation. Besides the home
  loan calculator, you can also get other tools
  like the home loan affordability calculator,
  eligibility calculator, tax benefit calculator,
  stamp duty calculator, and balance transfer
  calculator. Here is what you need to enter in the
  home loan calculator to understand the real cost
  of a loan
• Principal As mentioned, principal refers to the
  amount you want to get from a lender for house
  construction or purchase. You must enter the
  principal (loan amount) in the home loan
  calculators first box.
• Interest Rate Enter the home loan interest rate
  today in the calculators second box. The
  interest rate depends on various factors,
  including the borrowers credit score, age,
  property location, monthly income, credit
  history, tenure, and the like. It is wise to
  consult the lender before entering the interest
  rate in the calculator.
• Tenure You must enter the loan term in the
  calculators third box. Home loan tenure usually
  ranges between five (5) and thirty (30) years.
• After entering the principal, interest rate, and
  tenure on a home loan calculator, it shows you
  the monthly EMI you need to pay. You may change
  the inputs to arrive at a suitable loan amount
  and EMI.

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• Home Loan Calculator Top Benefits of Using It
• Free of cost - Generally, lenders provide home
  loan calculators and several other tools for
  free. However, you must visit the lenders
  website to use the calculator(s). Once you open
  the calculator, you can use it as many times as
  you want to calculate your EMI.
• Easy to Use - You dont need to be an expert in
  computer or mathematics to use a home loan
  calculator. The three things mentioned above are
  all you need to estimate your loan-related
  liabilities.
• Accurate - Home loan calculators eliminate the
  possibility of making mistakes. Since the
  calculation is done digitally instead of
  manually, there is no room for error. Hence, your
  result is 100 accurate and can help you plan
  your finances properly.
• Seamless Comparison
• A home loan calculator enables you to compare
  lenders seamlessly. You can inquire about the
  interest rates offered by different lenders and
  use the calculator to check the EMI. This can
  help you make informed decisions.
• Conclusion
• An online home loan calculator eliminates the
  need to visit lenders offices. You can
  conveniently use your smartphone or desktop/
  laptop to open the calculator and check your loan
  eligibility and EMI. Moreover, you can also find
  the home loan interest rates today to enter the
  correct amount in the box provided and get
  accurate estimates. So, what are you waiting for?
  Open the home loan calculator to calculate your
  loan EMI.
• Source https//headsetxn.com/home-loan-calculator
  -definition-mechanism-and-top-benefits/