At a time when rental costs are rising, the need for a home is growing manifold up across the urbans of India. The pain faced by tenants can’t be explained in words as they need to constantly switch homes, change the schools of their children and make so many adjustments. Of course, they don’t like all these but are forced to do so.
However, home buying has become a lot easier than the earlier times because of the finance available at a large number of banks and housing finance companies (HFCs). These institutions are all but waiting to increase their customer base. But before making a call, it’s vital to know the cost ahead because a home loan is a long-term commitment going up to 20-30 years. So, how can you know the cost? You can do so by using home loan calculator. Why not then switch on the calculator to know the same? Get started then.
Home Loan EMI Calculator
Before applying for a home loan, be clear of the EMI you are supposed to pay over the course of your loan tenure. The device that you should look to use then is Home Loan EMI Calculator. It’s one mathematical tool that calculates the indicative EMI and interest on a loan. To calculate the EMI, which stands for Equated Monthly Installment, the calculator needs you to enter the amount of loan, the tenure and the rate of interest. The moment you enter all these, the calculator powered by its smart algorithms would provide the EMI and the total amount of interest you are likely to pay over the course of your loan. You can go online to find the calculator and compute the needful.
Home Loan Amortization Calculator
Adjacent to the EMI calculator results, you can also get to view the results of amortization calculator showing the repayment of principal and interest to be made each year. Not only that, the calculator even indicates the outstanding balance of a home loan at the end of each year.
Checking the amortization schedule can help you plan a prepayment before the expiry of the tenure. So if you have chosen a 20-year period for your loan, you can plan a prepayment in the 15th year or so by accumulating your savings and investments to the level that would be at par with the outstanding balance at the said period. The prepayment helps save you a certain portion of interest that would leave your pocket by continuing the loan for the period as agreed at the time of signing the loan agreement with the lender.
Example – Ravi Malhotra, a 28-year salaried professional, seeks a home loan worth ₹45 lakhs for a period of 20 years. He is contemplating three options – SBI, HDFC Limited and ICICI – to avail a home loan.
Home Loan EMI Calculator SBI
State Bank of India (SBI) ranks among the top lenders servicing a wide range of home loan borrowers. The interest rate charged by the bank now ranges from 8.35%-8.80% per annum. The public lender gives you as much as 30 years to service the debt.
Ravi can be offered an interest rate of 8.55%-8.60% at SBI to service his debt. He then would have to pay an EMI and interest of ₹39,195-39,337 and ₹49,06,696-49,40,958, respectively, over a period of 20 years.
HDFC Home Loan EMI Calculator
Giving SBI a nail-biting competition is HDFC Limited that offers a home loan at 8.35%-8.95% p.a. The leading mortgage firm provides credit for as long as 30 years. So if Ravi applies at HDFC, the interest rate is likely to be 8.40%-8.90% p.a. At this rate of interest, he should be ready to pay an EMI of ₹38,768-40,199. On the other hand, his interest liability would amount to ₹48,04,249-51,47,690.
ICICI Home Loan EMI Calculator
ICICI, for that matter, gives you a home loan at 8.45%-8.95% per annum for as long as 30 years. Ravi can expect to receive the loan at an interest rate of 8.80% per annum. In that case, Ravi is likely to pay an EMI of ₹39,911. The EMI over the 20 years will take the interest repayment count to ₹50,78,559.
