Buying a new home requires a considerable investment, and it is paramount that you plan your finances well to ensure that you can comfortably repay the amount. One of the best ways to get started with financial planning is to use an EMI calculator. Read on to know how it can help:
Applying for a home loan requires meticulous financial planning. One of the critical factors of a home loan is the EMI, which is the amount you must repay every month. It is an important obligation that you must fulfil until the end of the loan term. By knowing the exact EMI, you can determine the loan amount you must apply. One of the best ways to determine the EMI is to use the EMI calculator. If you have wondered how can an EMI calculator help in financial planning, it can benefit you in the following ways.
Makes the calculations easy
If you have always avoided financial planning because you don’t like the complicated calculations, using the EMI calculator can help you in this regard. The home EMI calculator uses a specific formula to calculate the EMI for different loan durations. Using this simple tool can make the calculation easy; you don’t have to sit down with a pen and paper and use different formulas to do the calculations.
The primary objective of the financial planning for a home loan is to know the exact EMI amount so that you can plan your monthly expenses accordingly. The EMI calculator gives you the accurate result based on the inputs you provide; you must enter critical details like the principal loan amount, the loan tenure and the interest rate applicable. The calculator will give you the results instantly. Also, it eliminates the possibility of human errors that may occur when you calculate the EMI manually.
Having a graphical representation of your loan can give you comprehensive information at a single glance. The EMI calculator can help you create such graphs for you with ease. You can also have the information presented in a tabular format.
Choose the right lender
When you start planning your finances for a home loan, you would inevitably approach different lenders to find the best offer. Different lenders offer loans at a different interest rates. The tool will calculate the exact EMI amount that you must repay based on the different interest rates you choose. A comparative analysis of the EMIs will make your choice of lender easy.
Choose the right loan tenure
Once you know the exact amount you must repay, you can then choose the right tenure of the loan so that the EMI becomes affordable for you. You can decide whether you want to pay high EMI and pay off the loan within a short period or do you want to keep the EMI low and repay the loan over a long period.
Apart from all the benefits, the EMI calculator is an easy to use tool; you need not have any technical expertise to use it. So, if you are looking to apply for a home loan, use the EMI calculator to manage your finance well and make a smart investment decision.