How To Use Home Loan Calculator?
Everyone has a dream of buying a home for his/her family or for individual, however due to lack of funds one has to look for home loans from banks or NBFC’s. But before you look for loans from this financial institutions it is very crucial you know in advance about the burden it may create on your overall finances.
Therefore moneycontain home loan calculator is a great tool as it shows you not only the monthly EMI on your home loan but also the interests you may need to pay overall on loan tenure.
Moneycontain Home Loan calculator is helpful for not only knowing EMI but mortgage loan as well, which is also known as Loan Against Property (LAP). You just need to enter the Loan requirement amount, enter the interest charged on the loan and at last the home loan tenure in months.
It will give you the details for your monthly EMI’s , total amount payable included the principal amount and the overall interest charges on the loan by your bank/NBFC. So go ahead and try it yourself below:
What Is Home Loan?
Before taking home loan, you should be thoroughly aware of what exactly a home loan? Different types of Home Loans and other hidden things which usually is not known in open.
Home loan, helps any individual to borrow money from a bank or a non-banking financial company(NBFC) on certain interest rate.
People mostly avail home loans for buying a house or a flat. However, they may also avail home loans for buying a plot of land for constructing their house.
Other reasons for taking a home loan may be for extending, renovating, or repairing their existing flat or house.
While the lender (Bank or NBFC) provides the loan, they consider the home or the property as the collateral (guarantee, security) for the loan amount you take.
If the borrower (you) defaults on payment or does not pay, the lenders (bank) has the right to liquidate (dissolve) the property and can recover their loan amount.
How Home Loan Interest Rates Works?
Interest is the cost of borrowing money for your home as a loan from lenders.
Applicants for home loans have to pay back at adjustable or fixed interest rates and other payment terms set by the bank or non-banking financial company.
Lower the interest rates for your home loan lower will be the total amount you pay.
For example: suppose you bought a home loan of ₹ 1,200,000.00 At, Interest rate of 9.0 % with tenure (in years) 5 than your EMI for every month with Principal & Interest is ₹ 24,910.00
On the other hand, if you can get the same loan at lower interest let say 7.5% instead of 9% than, monthly EMI will be ₹ 24,046.00 and the total interest you would have paid is ₹ 2,42,760, you would have saved around ₹51,840.
That is why you should pay close attention to which lender you are choosing and compare them to get the lowest Rate of interest to pay for your loans.
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