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Make Better Financial Decisions with a Home Loan Calculator

  By : , ,       16.8.2021         Mail Now

Buying a home is one of the most important investment decisions most of us make in our lifetime. While investing in real estate is usually a smart decision, not everyone has the funds to make the purchase outright. As such, many opt for a housing loan to realise their dream of owning a home. While it is crucial to have financial goals, it is more important to have sound financial planning and management strategies in place.

Taking a housing loan without proper knowledge and research could lead to problems that affect your ability to generate wealth for a long time. This is because a housing loan taken without analysing the home loan interest rate and other terms can cost you heavily, whether it is the applicable home loan EMI or total interest payable.

Tools such as the home loan calculator help with loan planning, ensuring that your finances stay healthy in the long term. Using such tools helps you access information vital to sound decision-making. To know how to best utilise the home loan calculator, read on.

Get Accurate Results, Always

To err is human, but this is not a problem you have to worry about when you use a home loan EMI calculator. All the calculations are done automatically with the appropriate mathematical formula in place. Thus, you can rely on these online calculators to help you better plan your financial decisions. For instance, by knowing the total interest payable, you are in a better position to determine whether you want to go through with the loan or not, or if it suits your goals.

Compare Your Options Easily

With a list of the home loan interest rates offered to you by several housing loan lenders, you can easily compare your options. Of course, the interest rate itself is a solid indicator here. But in case you have varying interest rates for different tenors, itís best to calculate your total interest outgo with a home loan calculator to make an informed decision.

Calculate Your Outgo Easily

Using a home loan EMI calculator is easy as most lenders have user-friendly options on their websites. Typically, all you have to do is enter basic information into the respective fields. This information includes the loan amount you wish to borrow and the tenor of your choice, among others.

The next step is to input the home loan interest rate advertised or offered to you. By doing so, the calculator will automatically display the total interest payable and the EMI amount. It will also show the total amount payable, including principal and interest.

Choose the Right Tenor

Choosing a long tenor reduces your monthly instalments but you end up paying more as interest in the long run. On the other hand, if you opt for a short tenor, you will end up with a high EMI amount and this can add unnecessary pressure to your monthly income. The best way to find the perfect balance is to use the home loan calculator. With it, you can calculate EMIs easily and adjust the tenor until you find the best option.

Determine your Principal Amount

A home loan calculator allows you to calculate the interest payable based on the tenor and the principal amount you select. Use this to your advantage while trying to decide the right loan amount. If the values youíve entered lead to high EMIs and excessive interest outgo, tweak your requirement to something that better suits your finances.

Identify Ideal Prepayment Periods

Prepaying a housing loan is one of the best repayment strategies used to reduce the burden of repayment. By making partial prepayments of the loan amount at regular intervals, you reduce the outstanding principal amount and thus lower your interest outgo. However, to find the best periods to make such payments, you must access the amortisation schedule. Easily accessible through the home loan calculator, the amortisation schedule gives you a clear breakup of your EMIs. Use this information to identify when the interest component is highest and prepay the loan for maximum benefit.

The intuitive home loan calculator can save your time and money and also help you make better decisions regarding your housing loan. Choosing the right lender is also a part of financial planning. In this regard, the Bajaj Housing Finance Limited Home Loan is a smart option to go with as it offers a competitive home loan interest rate, has a flexible tenor that ranges up to 30 years, and gives access to a sizable sanction, thus facilitating the purchase of your dream home with ease.

For a quick and easy loan application experience, coupled with expedited processing, apply online by sharing your basic information.

TAGS: home loan,  

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