How to Use a Mortgage Loan EMI Calculator

If buying a residential property ever crosses your mind, it is always advisable to have a gist of how much will go out of your pocket in the form of its monthly payments. This way you can not only economically allocate your earnings per month but also have a clearer view of the house you are looking for with respect to your financial status. This is where a mortgage loan EMI calculator comes into the picture. 

What Is a Mortgage Loan EMI Calculator?

It is an online tool that helps determine the monthly instalment values, amount of interest, and the total value of the loan secured against property. By giving out information about the loan amount, tenor, and rate of interest among other things, the EMI value can be computed very quickly. With the help of a mortgage loan EMI calculator, all kinds of changes can be made to the loan amount or tenor to adjust and determine an easy-to-pay EMI value that will not capitalize on the borrower’s expenses and suit their budget. This calculator not only estimates the EMI amount but also other factors like:

• The principal amount of the EMI
• The interest component of the EMI
• The remaining outstanding balance that needs to be paid after every EMI

Benefits of Using a Mortgage Loan EMI Calculator

There are several reasons why people prefer using this online tool, some of which are stated below:

• Speed: This tool is extremely fast in providing these calculations which allow the borrower to utilize their time in the right way.
• Easy Comparison: With its help, the borrower can compare all the offers made by the potential lenders, thus choosing the one which he deems to be the most suitable for the property loan. 
• Accuracy: It is an online tool made with the help of such an algorithm that it eliminates any chance of a manual error. So, whatever result you get out of this calculator, is fully accurate. 
• No Additional Cost: This tool is completely free of cost. The lender does not have to pay any additional charge to use this however many times they want to. 
• Unlimited Usage: This EMI calculator can be used as many times as the potential homeowner wants or needs.
• Sound Financial Planning: With the help of this tool, the borrower can plan their finances in a much future-oriented way. Not only will their budget be more pristine, but the borrower will also be able to avail of the EMI amount that will accordingly fit their budget.
• Easy to Use: This tool is designed in such a manner that it is extremely user-friendly. It does not require more than three steps and is exceptionally easy and convenient.

Factors Affecting Mortgage Loan EMI Calculations

There are three factors that help in deciding the EMI amount.

• Principal Amount:  EMIs will automatically be higher if the loan amount is more and vice versa. 
• Tenor: The tenor of the loan plays an important role. The longer the loan tenure, the smaller the EMIs.
• Rate of Interest: This factor determines how much ease the borrower will repay their loan. Their credit score, profile, and even their mortgage property all come into consideration when quoting a rate of interest on their property loan.

How to Use Mortgage Loan EMI Calculator?

Step 1:

The borrower should have a rough idea of the mortgage loan amount they want to avail of. Concerning that, the first step would be to choose the approximate amount of loan they want to secure. 

Step 2:

The borrower needs to choose the duration of the repayment of the loan period. While most people choose a longer repayment tenor to get smaller EMIs, some people also opt for a shorter period if they have the means to repay quickly. 

Step 3:

The third and last step would be to enter the rate of interest in the require section. 

After filling in all the details, the mortgage loan EMI calculator will show the update result accurately. If the lender feels the EMI is not suitable enough for them, they can make changes to the loan amount and repayment tenor as discuss in steps 1 and 2 to attain the desired result.

To present final thoughts on this, the use of the financial online tool is very convenient and futuristic. It helps potential homeowners to find their desired homes and also plan out their finances in an appropriate way.