Taking a home loan to purchase your dream home is always exciting. As it is a big loan of life where common invests their lifetime savings, getting a transparency regarding various aspects of the home loan like loan tenure, the rate of interest, monthly EMI and much more before you go for a home loan is very important. There are some online tools that help you gain knowledge about different aspects of the loan. You can know anything right from home loan eligibility to the total amount of interest paid on loan.
Online Tools to Give Transparent Picture On Home Loan
As you think of taking the help of the housing finance to take a loan to purchase a home, you will be worried about your eligibility for the home loan. Online tools like home loan eligibility calculator will let you know your eligibility to get the loan when you key in some personal and professional details like age, income, credit score and much more. In general, 40%-50% of your income will be sanctioned as loan considering another loan EMIs. Loan comparison sites like loginoloans.com have these tools embedded in the site and allow you to check your loan eligibility for free.
The next important aspect where you should establish transparency is monthly EMI which you are going to incur towards the payment of the loan. This includes both principal amount and interest rate of the house loan. EMI calculator is a right tool that helps you know the right amount of EMI on house loan based on the loan tenure, rate of interest and the loan amount taken. This tool also helps know the total amount of interest you pay on the loan based on the amount dispersed and rate of interest for the same. If you are not interested in paying high interest on the home loan, you can either reduce the loan amount or loan tenure. Keeping the tenure short will affect your monthly EMI. Make sure you have a right balance between loan tenure and EMI paid every month so that your monthly budget is not disturbed.
Apart from this, home loan EMI calculator will let you have a clear picture about amortisation details which makes you understand home loan amount interest paid and outstanding loan amount. This key information will help you decide if you want to prepay the loan.
Most importantly, online comparison tools, these tools help you choose the lenders by comparing the interest rates, processing fee, other related terms regarding the home loan and choose the one that fits in your favourable terms.