Home Loan EMI is basically the amount you have to pay to the bank to pay back your loan amount in full and also pay corresponding interest on the amount. Every EMI includes two parts which consist of the principal loan balance and interest paid. These two parts keep changing each EMI, however, the EMI stays the same during the entire loan term. In case of adjustable rate mortgages (ARM), repayment of principal and interest is done on a monthly basis while the payment of interest only is done on an annual basis.
To conduct a home loan emi calculation, you need to know the type of home loan that you are getting. You can get this information from your mortgage company. The factors to be considered in determining the home loan amount are the purchase price and the mortgage rate. The purchase price refers to the price you have to pay as down payment. This figure can vary from one customer to another and from one company to another.
Home Loan EMI Calculation using Home Loan EMI Calculator The calculation of Home Loan EMI based on the purchase price and the loan tenure follows a simple procedure. The first thing that you have to do is to multiply the purchase price of the property by the interest rate you are going to pay on a monthly basis. The result that you get will give you the amount you have to pay. Then, divide this figure by the total number of years you are going to use for the home loan tenure. This will help you determine the amount of money you are going to spend on the home loan.
Home Loan EMI Calculator using Home Loan EMI Calculator Another way of doing the calculation is to visit the website of the bank or financial institution. Here, the calculators will provide the details of the EMI as well as the interest rates. The home loan term used in the calculation of Home Loan EMI depends on the choice you make. There are different types of home loans available in the market. You can choose the one that gives you the best mortgage term and the lowest interest rates.
Mortgage terms generally range between fifteen years to thirty years. If you opt for fifteen years as the home loan term, the amount of money you have to pay will be approximately $30 per year. However, if you choose thirty years as the home loan tenure, you have to calculate the amount of money you will have to pay every year. This will include the principal loan amount, the interest rate and the compound interest over the entire tenure. This can be a little difficult, especially for those who have little knowledge about the concept of compounding.
Home Loan EMI calculator is a tool which is provided to you by the financial institutions and banks so that you do not have to do the calculations all by yourself. If you wish to do the calculations by yourself, you have to devote some time and devote energy. Even if you want to do it very quickly, it may lead you into trouble. If you are a person, who is not very aware about the concept of compounding, the calculator cannot assist you much.
Home Loan EMI Calculator is available free of cost on the internet. You can easily understand the concept and calculate the amount of money that has to be paid by you every month. Even if you do not have much knowledge about the home loan emi calculation, it is possible for you to carry out the calculations online. In fact, there are many websites which provide free home loan eMI calculator for the people living in Mumbai.
Home Loan EMI Calculator is available for different types of mortgages like the home loan or the mortgage loan. The user is required to enter the amount of loan taken, the number of installments to be paid and also the figure of interest to be paid. Then the figures given in the form will generate a result that indicates how much the user will have to pay. It can also be used for the purpose of estimating the total interest payable over a period of time. This tool is widely used by the banks and the financial institutions to estimate the amount of money which has to be paid for the installment.