Mortgage loan have become a popular means of secured funding due to their lower interest rates. For individuals looking for substantial credits at affordable interest rates, a loan against property should be an ideal choice. Besides reasonable rates, this fund also accompanies a longer tenor to facilitate repayment. However, as a long-term financial commitment, individuals must remember to assess the repayment schedule beforehand. It is when a mortgage loan calculator proves beneficial.
Here is a detailed guide on its usage.
How to use a mortgage loan calculator?
Individuals can determine their monthly payments using a mortgage loan calculator. Following are the steps to use this online tool:
1: Visit the official website of the lender and search for their online loan calculator page
Step 2: Open Loan against Property Calculator and enter loan amount and tenor you wish to choose.
Step 3: Input applicable mortgage loan interest rates and click on Submit or adjust the sliders.
This online tool shows the EMI payable, interest outgo, and total amount payable. Besides, few calculators show the percentage that goes towards paying principal and interest, respectively.
Individuals can adjust the inputs for a feasible EMI per their financial capabilities and determine the ideal tenor for their loan against property.
Thus, besides knowing how to apply for a mortgage loan, individuals must also know the benefits of using this tool.
Benefits of a mortgage loan calculator
A loan against property EMI calculator helps a potential borrower check his monthly instalments. However, this online tool helps in various other ways that individuals need to know, including:
Aids to get the best deal
Besides precise calculation, this calculator also lets you shop for the best deal on this credit. Since the mortgage loan interest rate varies with lenders, you should compare them to make an informed decision. Moreover, you can use this online as many times as you wish.
Additionally, understanding the charges on your loan against property is also crucial to keeping your finances on track.
Better loan management
Since this online tool shows the EMI and interest payable; individuals can estimate the borrowing cost easily. It also helps them adjust the tenor to arrive at an EMI that matches their financial capacity.
Accurate and swift
This online calculator is swift and accurate. Manual calculation often leads to errors that hamper financial planning. However, with this tool, such instances can be eliminated completely.
In addition, individuals can also check reverse mortgage loan while applying for a loan against property.
Tips to reduce mortgage loan EMI burden
Following are some simple tips to reduce the monthly instalments of a loan against property and ensure a comfortable borrowing experience:
The existing borrowers can also reduce the monthly payment amount by making part-prepayment regularly. With this facility, they either can trim the tenor by keeping the EMI the same. Otherwise, they can also keep the tenor intact and reduce EMI payable.
- Opt for a longer tenor
The loan against property tenor goes up to 20 years. Hence, individuals with lower monthly incomes can opt for a longer tenor to reduce the EMI outgo. However, while longer tenor reduces monthly instalments, it increases the interest outgo and vice-versa.
- Choose balance transfer
Another effective way to reduce the EMI burden of a loan against property is by opting for a balance transfer. However, note that lenders offer this facility only to those with impeccable repayment history. Additionally, a balance transfer proves most beneficial if done in the initial phase of repayment.
Furthermore, the availability of pre-approved offers extended by leading financial institutions streamlines the loan application and saves time. Such offers are available on various financial products such as loans against property, home loans, and likes. Individuals can check their pre-approved offers online by providing their essential details.
Hence, using a mortgage loan calculator is an indispensable part of borrowing funds. Both existing and new borrowers can leverage this tool and ensure a smooth repayment.