Buying a home is a big financial decision where you may have to invest all your savings. The home loan can help you realize your dream of buying a home. But before you make use of this resource you need to decide how you will repay the loan amount.
Equated Monthly Installments Can Make Things Easy For You:
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Repayment of your home loan can be done with ease by the EMI system. Here you will have to pay a specific amount every month to repay the loan. This will have to be done till the tenure of the home loan ends. The EMI covers 2 aspects:
- A portion of the principal amount that has been given to you as a home loan
- A portion of the interest component on the loan amount.
Factors Affecting The Home Loan EMI And The Interest Rate:
Certain factors will have an impact on the home loan EMI.
- The loan tenure: For shorter loan tenure the EMI will be high but the interest rate will be low. If the loan tenure is longer then the EMI amount will be low but the rate of interest will be high.
- Credit Score: This factor gives an insight into the individual’s creditworthiness and financial habits. One needs to have a high credit score so that one can get a lower interest rate. If you have a low credit score then you will have to bear a higher interest rate on the home loan which will affect the EMI adversely.
- Loan to Value Ratio: This indicates the percentage of the property value that can be financed through a home loan. If the individual can make a large amount as a down payment, then this will reduce the loan quantum. This in turn will reduce the rate of interest.
- Type of Interest: Here there are 3 options in the case of the type of interest. The first is the floating rate of interest which will depend on the changes made by RBI. The second is the fixed rate of interest where the rate of interest remains the same throughout the loan tenure. Third, is a mixed interest rate where the first fixed rate of interest is applicable and later floating rate of interest is applicable.
- MCLR: Marginal Cost Of Funds Based Lending Rates will also have an impact on the interest rate.
Formula For Calculating Personal Loan EMI:
P x R x (1+R)^N / [(1+R)^N-1] is the formula for calculating the personal loan EMI.
P= Principal Amount
R= Rate of Interest
T= Tenure.
Home Loan EMI Calculations Now Made Easy With The Money View Home Loan EMI Calculator:
Before you avail to the home loan facility make sure that you check the EMI that you will have to pay for the loan amount that you borrow. Not sure how to calculate the EMI? Don’t want to do any complex calculations? There is an easy way to calculate the home loan EMI and that is with the Money View Home Loan EMI calculator. All that you have to do is follow the easy steps and get the EMI amount.
- Enter the home loan amount that you want to borrow by adjusting the first slider.
- The next slider is for entering the rate of interest
- The next slider you have to adjust to enter the repayment tenure.
The amount that you have to pay as the home loan EMI will be displayed on the screen. The repayment schedule will also get displayed on the screen.
Distinct features of Money View Home Loan EMI Calculator
Money View home loan is widely acclaimed by the people for various reasons. Take a look at the unique features of this amazing home loan EMI calculator:
Precise: This calculator gives you precise information about the EMI that you will have to pay for a specific loan amount.
Effortless Use: This home loan EMI calculator is very easy to use.
Fast: The home loan EMI calculator is very fast and you get the EMI amount details quickly.
Wrap Up:
A home loan makes it easy to realize your dream of buying your own home. But for that, you need to check if the EMI amount is feasible for your pocket. If you want to check the EMI amount for your home loan then use the fast and easy Money View EMI calculator.
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