What Is Home Loan Emi?
What is Home Loan Emi? Short for Home Loan Insurance, it is a type of mortgage that provides home owners with a life-time policy to pay off their home loans. It is not designed for a one time fix up but rather for a life time guarantee. This insurance allows you to borrow a bigger loan amount and at lower interest rates to pay your email.
The concept of Home Loan Emi is very simple and attractive. You borrow a bigger loan amount with lower interest rates to pay off your current home loans. There are many benefits of Home Loan Emi. First, you can always get a bigger loan amount and pay it off in a shorter period of time. You have better options available with the quotes you get.
In Home Loan Emi, the interest component is fixed for the lifetime of the loan. This helps you to calculate the monthly instalments and the repayment amount. When you compare the quotes, you find that the repayments are almost the same in all the plans. The only difference is the monthly instalments and the total interest amount over a longer period of time.
The first and the most important advantage of Home Loan Emi is that the repayment schedules are fixed. It doesn’t matter how much money you borrow. You pay the same amount every month. If you use up more amount in one month then you pay the extra amount in the next month. This gives you a comfortable repayment schedule and you don’t have to think about any unexpected expenses.
Another advantage of Home Loan Emi is the fixed rate of interest. In the case of other plans, the rates might vary from time to time. In Home Loan Emi, the loan amount is locked and there are no pre-payment penalties or charges. The only thing you need to do is to calculate the monthly instalments. You can use the Home Loan Emi calculator to find out the amount of monthly instalments. This way you can make a budget and plan your expenditure.
You have to pay an extra amount as the Home Loan Emi calculation only shows the amount that you need to pay every month. If you borrow a bigger amount, the repayment will be lower. You have to calculate the amount you will need to borrow after you deduct the amount you will get from the interest rate. The result you get will help you plan your expenditure. In this way you can plan your monthly budget and save money.
Once you have calculated your needs, you can talk to the lender. Lenders also offer the Home Loan Emi calculation which can be used to calculate home loan emi. However, it is advisable to use the traditional way of calculating which is done using real estate agents or on your own. This will ensure that you get the right scheme for you.
When you are choosing a plan, it is important to take into consideration your current situation. If you need a bigger loan amount, then it is recommended to go for Home Loan Emi. It gives you a proper calculation of your expenses. It also gives you the monthly repayment option that you can choose from. Hence, the home loan emi calculation is your best bet when you need to decide between various plans.
When you are choosing the plan, it is important to know what you exactly want. Basically, there are two parts to a home loan repayment. The first part is the interest component. This will calculate how much of your principal cost you will pay every month. The second part, known as amortization schedule, considers the balance of your unpaid balance and the amortization schedule. It will help you decide on the monthly payment amount.
Another feature that can be useful is the Housing Loan Emi Calculator. This calculator determines how long you will live in your property. Based on this assumption, you can adjust your interest rate and your loan period. The calculator also shows the annual percentage rate of your housing loan period.
There are other features that are useful. The calculator allows you to compare the rates offered by the different banks. It also allows you to consider different tenure lengths. If you own a house for long term, you can consider short term emis. Most importantly, you can use this information to make the right decision.