123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Home Loan Basics: A Guide For Calculating Monthly Home Loan Emi

By Author: Aishwarya Mahurkar
Total Articles: 291

Dream home is a worthy dream and home loan is a great financial tool to avail it. For most people, it is their only chance to avail it. However, if you need a housing loan for buying a property, then all your decisions are connected to calculating monthly home loan EMI profitably. So, explore this article to understand the home loan basics and run home loan EMI calculations successfully. Whether you use a home loan EMI calculator or a excel sheet of a computer, this information will help take right decisions.


Parameters of home loan EMI:


Understand the factors that influence home loan EMI. Every factor can be changed in order to get an affordable monthly EMI. Some factors can be changed more easily than others. But all options are at your disposal.


• Cost of property
• Down payment
• Home loan protection plan
• Type of interest rate
• Home loan tenure
• Repayment option


These factors affect EMI. But, you cannot calculate their impact with any home loan EMI calculator in India. Most can calculate the impact of interest rate, tenure and principal amount. But, you will need to consult home loan consultant for other complex factors. There are few additional factors beyond an individual’s control. i.e. processing charges, stamp duty, repo rate, base rate, RBI regulations. Etc.


Tools for calculating home loan EMI:


There are several home loan EMI calculators in India. The advanced EMI calculators calculate more than monthly EMI. They display amortization table. They exhibit the proportion of principal amount and interest. The most advanced home loan EMI calculators incorporate repayment options too. But, any decent online calculator is good enough to run all possibilities and understand the factors that you need to change.


Factors to change for lower home loan EMI:


You control several factors influencing a home loan EMI. You can tweak them to get a superior home loan offer and/or a lower EMI. So, here is how you make smart changes.


To lower the principal amount, you can:

• Consider property in different neighbourhood, city, floor, etc.
• Consider a lesser number of rooms
• Increase the down payment.


To lower home loan interest rate, you can change:


• Credit score and credit history
• Debt to income ratio
• Current liabilities
• Current assets
• Down payment
• Type of interest rate


To reduce home loan tenure, you have to increase the monthly EMI. You can change a repayment option for a lower EMI too.


The best way to calculate and avail a suitable home loan EMI is to contact with personal finance experts. i.e. home loan consultant, relationship officer, etc. They will help you understand the home loan process and make the smartest decisions possible.

Author Bio :

The author is a seasoned writer on finance topics and through her writing; she articulates aspects of home loan that are important to people availing the home loan interest rates facility. She writes about a variety of topics covering the home loan documents, rates, home loan EMI calculator that help to make the best decision.

Total Views: 142Word Count: 484See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: