While many people dream of owning their own house, this is not such an easy feat, considering how expensive property rates are. To tackle this, most homebuyers apply for home loan plans to arrange the funds required to buy houses. A home loan typically covers up to 75%-90% of the property value, depending on the loan amount. Most financial institutions offer a repayment tenure of up to 20 years. This makes it easy for home loan borrowers to quickly pay off their home loans in monthly installments over a long period.
While a home loan is a great way to finance a property purchase, it is essential to ensure that the loan can be repaid without any financial complications. Now, there are two ways one can go about when it comes to calculating a loan plan’s monthly installments. The first is through manual calculations, and the second is to use a home loan EMI calculator. Which is the preferable option – the old school method of relying on digital technology?
Let’s take a look at why using a home loan EMI calculator is considered much better as compared to manual calculations:
1. A home loan EMI calculator always provides accurate results
With manual calculations, there is always a possibility of an error. This error can lead to significant problems in the future when it is time to repay the loan. It is much safer to use a home loan EMI calculator as it provides accurate results within seconds.
2. It allows users to try out various combinations to find a suitable home loan
The only way of finding the most suitable plan is first to study multiple plans. This is precisely what a home loan EMI calculator can help out with. It lets the user keep changing information in the fields of the home loan interest rate, loan amount, and repayment tenure. This way, it becomes possible to find a loan plan with affordable EMIs.
3. The calculator helps borrowers set a sound financial plan
A borrower needs to know about the loan amount they can afford to apply for or a repayment tenure suitable for their budget. Using a home loan EMI calculator will help understand a suitable loan amount and term, but even whether the loan’s interest rate is affordable.
4. Users can access the calculator for free without having to provide any personal information
Some users can be apprehensive about using a home loan EMI calculator because they might feel that the website would ask for their data. However, most financial institutions make this home loan calculator available on their websites for free and do not require users to share personal details.
After going through all the benefits that a home loan EMI calculator provides, it comes as no surprise as to why it is preferred over manual calculations. So, make sure to use this calculator and avoid unnecessary repayment hassles.