The Different Methods Of Calculating Home Loan EMI

Most first time borrowers are under assumption that calculating home loan EMI is easy. All you need is a housing loan EMI calculator. You have to agree with that. It does seem like if you have EMI calculator for home loan, all you need to do is enter right numbers. But, believe it or not it is more complex than that. Here are two reasons. Firstly, lots of factors in the equations remain unaccounted for. Secondly, EMI calculator will not help you get the specifics you actually need. So, here are three common methods.

Manual calculations:

Most of the formulae for home loan EMI calculations are available online. You can easily note them down and calculate EMI as per repayment option, home loan tenure, etc. The ease of doing them manually depends on your mathematics skills. But, most websites do offer an example in order to assist readers calculate home loan EMI. This process is the most tedious one. But, there are few high-level calculations you cannot see with online tools. For example, EMI as per balloon repayment option. Manual calculation is the way to go.

Online calculations:

Most borrowers are familiar with online EMI calculators. Thing is, there are a lot of housing loan EMI calculators in India. All of them do not offer real help. Some are just an online version of basic mathematical calculator. Yet, it does simplify your job, especially if you are not a maths geek. But, there are some efficient EMI calculators for home loan. They support your calculations well with several additional online tools like amortization table. DHFL has one of the best EMI calculators in housing finance industry.

Computer calculations:

You can use excel sheets on a computer to get the job done. It will be as good as some of the Property Loan Emi Calculator. But, with basic asthmatics skills and few formulae, you can check the basic structure of repayment options too. However, it is not as good as some of the advanced online tools.

Either way, the best method for your calculations is the one that give accurate results instantly. Online home loan calculator is a great choice but not for more customised calculations. However, you will need to know the following before you calculate the EMIs and other details. For example, cost of property, processing charges, stamp duty, legal fees, and realistic interest rates. This information can be made available to you when you meet a relationship manager for the same. Even a third-party personal finance consultant is a great person to meet for these details.

Source: http://bit.ly/2cXvaEn

Home Loans - Right Approach to Become a Homeowner

Each one of us wishes to possess a home of our own. With some pounds in your savings accounts, it won't be possible to purchase a house that requires a big investment. If you dream to own a home, home loans are the best way to finance your dream.

Home loans are offered against the equity in ones home. Equity can be defined as the value of the home after deducting outstanding mortgage amounts and other loans. Lenders take various factors into consideration while calculating the home equity such as location of the home, the structure etc. The loan will be secured on the borrower's home and the transaction will not impact existing mortgage in any way.

A home loan is basically taken to purchase or to construct a new house. Borrowers can also use it to make home improvements, consolidating their existing debts, to buy a luxurious car or for any other personal purpose.

The loan proceeds of a home loan can supplement both mortgage and secured loans. Homeowners can put their existing house or real estate as a collateral to get finance to purchase a new house. However, if you are a tenant you can put the new house as a collateral to get a home loan.

There are various benefits attached with the home loan. Home loans offer larger amount loan with a longer repayment term. Home loans offer you the opportunity to borrow a loan for any amount ranging from £3000 to £500,000. Home loans can be repaid over a period of 5 to 25 years depending on the amount you borrow.

Home loans cater to UK residents with different loan options, which make it easier for borrowers to repay the interest on the loan in the most comfortable and convenient manner. Annual percentage rate or APR is the term used to denote the rate of interest. Home Loan  give borrowers the option to pay either fixed interest rate or adjustable rate interest rate on the money borrowed. Fixed interest rate option implies that interest rate will remain the same throughout the life of the loan. While an adjustable interest rate would imply that the rate of interest would change periodically with the corresponding fluctuations in an index, with which it is attached.

This interest rate is also known as variable rate home loan.

A borrower can also opt for interest-only loan option. An interest-only loan gives borrower the opportunity of paying just the interest or the interest and as much principal as he wants in any given month during initial period of loan. If you choose this option, your monthly payment will be lower than in case of an interest and principal repayment option.

There are various loan providers in the finance market. They may devise ways to overcharge borrowers who are not much conversant with the ways of the market. Interest is generally charged on the higher side, and borrowers also have to shell a larger sum as fees for the services of the lender. Thus, a few efforts on your part can save you from paying higher interest or huge fees to lenders.

First of all, find out your credit score. Credit rating agencies such as Equifax, Experian or Transunion can help you get your personal credit report. Knowledge of credit score can help to grab good rates in the market.

Next thing you must do. Search for lenders who provide home loans. You can apply for a home loan online too. Applying for a loan online makes it more convenient to get a fast and cheap home loan. Saving your time and helps you find the best deal at best rates. Most of the lenders provide loan quotes to borrowers, which are free or carry nominal fees. Collect loan quotes from lenders and compare them to find the best home loan.

Dream to own a home can come true with a home loan. Homebuyers are urged to search for home loan providers and gather as much information as possible, so that they can do comparison and shopping with an idea of what they want, can afford, and can qualify for.

Source: http://bit.ly/2cysjp1

How To Calculate EMI And Loan Interest?

Emi Calculator Housing Loan