Owning a home sweet home is a dream come true for everyone. For you, it is a personal asset that you would have for your life and the next generation as well. You would involve for many months when you plan to purchase a new home. You will be applying for a home loan in case you do not have much amount with you to pay a single payment for the house. Hence, you will end up finding out the best deal to get a home loan. It is quite a big decision when you decide to get a home loan to purchase a home. You will be repaying the home loan amount in Equated Monthly Instalments (EMIs) for a longer duration. Hence, deciding on the loan amount and the borrower you should be done carefully. This stage is very important,and you need to spend a significant amount of time to research various options and to understand the associated terms and conditions. This will ensure that you are aware of all the factors before you make this long-term commitment. Also, you need to check with the home loan EMI calculator that would give you a rough idea of how much of EMI you will end up paying per month. Few online calculators that would be helpful to use are the following:
Your home loan suitabilityis based on a few factors. It includes your educational qualification, job, assets, age, existing liabilities, and spouse’s income. Most of the financial institutions provide you a maximum loan amount where the EMI would go to about half of your monthly income.But eligibility differs from lender to lender and you need to check before you take any decision.
Having an online home loan EMI calculator would give you an idea of the rough EMI that you will have to pay per month. Using this online calculator, you will need to enter a few details like interest rate, loan amount, duration, and processing fees. This is an easy calculator and a fast method to help you with your decisions. Here are a few things that you need to know to increase the benefits of the calculator:
- Borrowed Amount – Before you apply for a home loan you should be aware of the amount you will borrow to purchase the property. Based on the property’s total price, you will require to calculate the down payment. Before the lender pays you the home loan, you will end up paying this amount from personal account. You should know this value appropriately to enable you to find out the exact EMI.
- Loan Tenure – Based on your monthly instalments and other existing instalments that you have; you need to choose the loan duration. You should understand that when the EMI is less for a longer duration, the amount of interest you pay is high. You need to check the EMI for various durations using the home loan EMI calculator to find out the ones that best suit you, in a way that is comfortable for you to pay the EMI.
- Interest Rate – Once you find the loan amount and the duration, you need to input the probable interest rate that the lender charges. Some lender provides a variable interest rate. So, you need to know these details exactly before you process for a home loan.
- Repayment Choices – The repayment choices differ from lender to lender. Some lender provides feasible repayment options to make sure that you do not have afinancial difficulty to serve the loan. Few lenders provide you with an option where you can increase the EMI amount as your income increases. Also, you can repay your loan before the tenure ends and save its overall interest cost.
While you apply for a home loan you need to check from all angles and do thorough research so that you would not end up with unnecessary financial issues at a later stage.
There are many ways where you can apply for a home loan. One easy and fast way is to apply for a loan online. But, to check that your application would not be rejected, it is ideal that you visit various online tools to find out your home loan worthiness.