Excel Based Home Loan EMI CalculatorJuly 31, 2021
Home loans are one of the most popular ways for young homeowners to own a home. With the rising prices of homes across the country, home loans are the best way for people to buy their dream home. With lenders going digital, it is now possible for borrowers to research lenders and their loan offers online, make loan applications online and even approve loans online.
In earlier times, borrowers had to depend on the loan amortization program from the lender to ascertain the EMI amount. However, with everything going digital, it is now possible to find out the installment amount using the Home Loan EMI Calculator.
What is Home Loan EMI Calculator?
A home loan, like other loans, is repaid in the form of monthly installments. These installments are equal to the amount from the start of repayment till the time the loan is repaid. The monthly installment is the sum of both the principal payment and the interest payment. The split between principal repayment and interest payment differs as loan repayment progresses. In the initial few years of repayment, the interest component of the installment is high. Whereas in the later part of the loan repayment, the repayment of principal is higher.
It is possible to find out by using Home Loan EMI Calculator. This calculator calculates the monthly installment amount using a formula. The formula is not shown to the user. This calculator is available for free on the lender’s website. It doesn’t matter which lender’s website you visit or whether you are an existing customer of the lender. The calculator can be used for free.
How to use Home Loan EMI Calculator?
Easy to use Home Loan EMI Calculator. To find out the monthly installment amount, you need to enter three things in the calculator:
Once you have entered the three details, you need to press on submit. Once you submit this information, the calculator will automatically display the monthly installment amount. This information that you add to the calculator can be changed to determine the effect on EMI. For example, if you want to check the effect of loan tenure on your EMI, you can convert it into a calculator and set two different EMI options. This can help you choose the right tenor for your home loan.
Some lenders may have the lender’s interest rate specified in the EMI calculator for the home loan. In such case, the interest rate will not be open to edit. However, in other cases, the user can enter the details manually.