A home loan is defined as a housing loan in which the borrower mortgages his buying property to the bank to avail an advanced sum of money. This money is repaid in the form of equated monthly installments including the interest charges. The more interest charged on the loan amount, the more will be the extra amount paid by the borrower. Everyone desires the interest to be least charged to avoid burning holes in the pocket. Therefore, when obtaining a home loan, it is necessary to research and compare different interest rates provided by different lenders in order to crack the best deal.
You can calculate the total interest on your home loan by using the home loan EMI calculator. A house loan calculator is a web-based application that helps borrowers budget their finances. It is a tool that can be found on the website of any home loan company. You’ll need to enter how much you want to borrow, how long you want to pay it back, and the Home loan interest rates to calculate your home loan EMI.
Calculate your house loan EMI using the Home Loan EMI Calculator tool. This calculator can assist you in determining how much EMI you can pay each month without going into default.
The EMI calculator for a home loan calculates how much you’ll have to pay in EMIs each month, allowing you to make informed decisions about your monthly spending and other expenses. As a result, understanding your EMI is critical for determining your eligibility for a house loan and planning your home purchase.
Here are the top five banks that provide the best home loan interest rates.
|HDFC||Starting from 6.70%|
|ICICI||Starting from 6.90%|
|AXIS||Starting from 6.90%|
|KOTAK MAHINDRA BANK||Starting from 6.50%|
|SBI||Starting from 6.75%|
How Do You Calculate Home Loan Interest?
In general, home loans are long-term loans, so it’s crucial to figure out your total interest liability upfront. One of the two approaches described below can be used to calculate the home loan EMI:
- Home loan EMI Calculator: You can use a home loan EMI calculator to figure out how much interest you’ll pay on your loan. You’ll need to fill in the fields on the calculator with the following information –
Your desired loan amount, the loan repayment period or the loan tenure, and the rate of interest offered by your lender.
After entering all the above information, the resulting amount will be your calculated interest along with the resulted total amount you will be paying.
- The formula for Home loan EMI Calculation:
You may also calculate your EMI responsibility for your house loan using the following formula: EMI = [P x r x (1+r)n]/[(1+r)n-1]
The Bottom Line
As a home loan is categorized under the largest and longest debts, it is necessary that you research, compare, and then select the best home loan for you. Thes foremost factor while looking for the best home loan is the least and affordable home loan interest rates. Larger interests could lead you to pay large amounts over the loan tenure, resulting in cash deficiency. Therefore, you need to effectively choose your best home loan interest rates with all the hidden costs and other charges.