How does EMI calculation help you plan a home loan?
In this case, you can understand in advance, how much money you need to set aside for a home loan. How much of the property you will buy, how much you can borrow, or how much you need to raise. This calculator will easily explain to you how much money you have to save for debt repayment every month. It will have a definite idea about monthly expenses. You can budget the world accordingly.
What is home loan EMI?
EMI (Equated Monthly Installment or EMI) is a system where the borrower can repay the total amount of money borrowed to the bank in fixed monthly installments with interest. EMI payments cover both your principal and interest. EMI depends on how much money you borrow or how long it takes to repay the bank. Credit card scores and credit history help calculate EMI.
What is a home loan EMI calculator?
Real estate prices are on the rise right now. People have less money in case of lockdown, corona situation and economic slow-down. In this situation, a home loan can fulfill your dream of owning a home. With the help of this calculator, it will be possible to know exactly how much money can be repaid in a few installments. With the help of this calculator you can decide which home loan is right for you before taking out any home loan.
What is a home loan?
The customer takes this loan from a bank or housing finance company to buy a house or a flat. There are 3-4 things to keep in mind when taking out a home loan. Firstly, the interest rate, secondly, the total loan amount, the loan repayment period, the credit score.
EMI Calculation Formula?
Mr. Shah borrowed a home loan of ₹ 40,000 from a reputed bank. The interest rate associated with the loan stands at 7.5% p.a. The term of the loan is 240 months or, 20 years. In this case,
- the principal amount = 40,00,000
- Interest rate = 7.5% p.a
- Maturity = 20 years
EMI = [4000000 x 7.5 x (1 + 7.5) ^ 20] / [(1 + 7.5) ^ 20-1]
- Total monthly EMI calculation. 32,224 and total interest payable calculation 37,33,622,
Original loan amount: This is the actual amount lent to you by the bank / lender. The loan amount will depend on your needs and the purpose of the loan. The higher the loan amount, the higher the EMI you will pay for the loan.
Term: The term of the loan refers to the total period of time paid for the repayment of the loan. Since payments are made every month, the term is calculated in months, not years. So, 2 year term is equal to 24 months, etc.
Interest Rate: This is the rate at which interest is charged on the principal amount of the loan. The interest rate varies depending on the type of loan taken and the lender (bank) from which you are borrowing. Interest rates have a direct effect on your EMI amount, Therefore, it is important to compare interest rates across banks before taking out a loan.
What are the reasons for home loan?
- Completely created, under construction,
- resale property is taken to buy.
- To build a house
- To buy land to build a house
- For home repairs
- To extend the house
- For the time between buying a new home and selling the current one
- Suncorp Home Loan
- Home Equity Loan Calculator
When to start paying home loan EMI?
EMIs should be introduced from the month following the home loan. In case of a house under construction, you usually have to start giving EMI after getting the complete loan. However, you can start giving EMI as soon as you get the first loan.
In that case the interest will increase in line with the amount of loan taken after each item. In case of buying resale of someone’s property, repayment has to be started from the time of taking the total loan