Home Loan EMI Calculator: How to Reduce Your Home Loan EMI Burden
Buying a home is a wish that each of us has in our hearts. But as amazing as owning your own home, it is a solution that requires a large investment. This investment is usually in the form of a home loan which is gradually repaid back to the lender in the form of an EMI for a home loan. Home loans require prior planning because they are relatively long term and can be a constraint on household finances for a long time. It’s an honest idea to calculate your EMI count before applying. A great tool like a home loan EMI calculator can help you with this.
What is the Home Loan EMI Calculator?
The Home Loan EMI Calculator is an online tool for calculating monthly EMI. Based on some home loan details, the calculator will give you the exact amount EWI has to pay. It also includes a table with payment schedules and details of total payments.
Benefits of the EMI calculator for home loans
The EMI Home Loan Calculator is a multipurpose, simple, and hassle-free calculator that only requires you to enter 3 values. Reaching benefits means being aware of what you are doing. You have a clear picture of the amount of the loan that will be given to you, for how many months/years, the interest will usually be returned. This way you can plan all your finances in advance.
With that in mind, you need to plan in advance where to start paying the initial amount as well as the monthly EMI, which again is a chore in itself.
How can you reduce the EMI burden on your home loan?
At a time when the fragile economy is weighing on the lives of most people, making regular loan payments is a challenge. For those who have taken out very high EMI home loans, this challenge is even more difficult.
Reducing EMI payments seems like an effective way to survive in a bad economy. If, as a borrower, you are also looking for ways to make home loans easier by reducing your EMI payments, follow these tips!
- Change your lender
When you take out a loan, you may have chosen a lender who can offer you high-interest rates on your home loan. Once you’ve found a new lender that would like to offer you significantly lower interest rates, consider changing the average loan from your lender. Even if you can’t find a lender with a lower interest rate on your home loan, you should look for a lender who wants to extend your repayment period. Before switching lenders, use an online EMI home loan calculator to find out how much your EMI fell.
Changing lenders is very convenient. All you have to do is contact your existing and new lenders and request a loan balance transfer. Refinancing a home loan at a lower interest rate is one of the easiest ways to reduce EMI. - Assistance with prepayment
Previous prepaid loans were very expensive. Recently, however, most banks and NBFC have stopped collecting prepayments to allow borrowers to pay off large amounts of their home loans before maturity. If you want to lower your EMI and accrued interest rates, a good strategy is to prepay your home loan online or offline at the start of the repayment period. - Make a larger initial payment
While this advice does not apply to existing borrowers, it can be very useful for potential borrowers. Since home loans only cover 70-90% of the total purchase price of the home, the down payment is used to cover the remaining costs. A higher deposit reduces the principal loan amount, meaning that the interest rate on maturity and accrued EMI is automatically reduced. If you have additional savings or funds to pay a significant down payment when applying for a home loan, do so. - Choose a longer stock
If none of the other options have worked for you, extending the life of your home at the request of your existing lender is the best way to reduce EMI. Note that for longer loan repayment terms, you will have to pay more interest, but your EMI will decrease significantly. Negotiate longer payment periods with your lender. Before making this decision, determine the exact amount of interest you will pay on a home loan using the EMI calculator.
Before choosing a lender, make sure you have read and met the home loan eligibility criteria imposed by your financial institution on renewals, refinancing, or prepayments. Use smart financial planning and focus on ways to lower interest rates or EMI if possible. However, be careful with EMI reduction methods that require higher home loan interest payments.
With proper planning, you can easily apply for a lower EMI risk home loan for a home loan and keep your savings safe.
