Since opting for a home loan is one of the significant financial decisions an individual makes in his/her life, one always looks for ways to reduce housing loan interest rates. Using a housing loan EMI calculator serves the best purpose out of all available online tools.
Ways existing home loan borrowers can reduce EMI amount
Existing home loan customers can take the help of a home loan EMI calculator, an online tool to compute home loan EMIs. Besides, they can opt for any of the following ways to reduce their monthly payable:
- Shifting from fixed to floating rate of interest
If a borrower chooses a fixed rate of interest, he/she may end up paying a significantly higher housing loan interest rate throughout the loan tenor. Switching to a floating rate of interest from the same lender or a different lender can help in such cases. Floating rates, as the name suggests, keep changing per market fluctuation, allowing borrowers to make the most when the market rate is considerably low. As the interest rate decreases, the monthly payable also reduces. if we purchase a home-approved housing society then we easy for a loan.
Several financial institutions extend pre-approved offers to existing customers to simplify and accelerate home loan process. These offers are available on a range of financial products like home loans and loans against property. Individuals just need to enter their name and contact number to check their pre-approved offers.
- Housing loan balance transfer
Also known as home loan refinancing, a housing loan balance transfer is an effective way borrowers can reduce their already servicing interest rates. The main reason for choosing it is lower interest rates on home loans, revised repayment offers, or sometimes better services offered by the new lender. However, it is important for borrowers to know why they should choose home loan balance transfer as a viable option.
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Benefits of using a home loan EMI calculator
The greatest advantage of using this online calculator is that it will never show incorrect results since the calculation is not done manually. Other benefits are:
- Simple and easy to use: Using a home loan EMI calculator is easy and straightforward. Besides, calculations can never go wrong. Customers will just need to enter the applicable components, and housing loan calculators, such as this, will give the results in no time.
- Quick calculations: A manual calculation done using pen and paper would take more time, leaving room for errors. Whereas using these calculators would make the task hassle-free, and the result would be displayed within a few minutes.
- Secure future planning: With home loan EMI calculators, borrowers can plan out a financial budget so that they can meet both ends. Borrowers get to know their EMI amounts on housing loans from beforehand, and can plan accordingly.
- Compare loan offers from other lenders: Using housing loan EMI calculators from different websites, one can know which lender has the best offer and borrowers can choose accordingly. However, before opting for a loan, borrowers should always check whether they are eligible for the loan or not. They can take the help of a home loan eligibility calculator for such verifications.
- Results without personal information: Borrowers need not enter their personal details to access the EMI calculator. It is absolutely free and safe for usage.
To use the EMI calculator, borrowers can visit their lender’s official website and use the tool present there. They need to enter their desired loan amount, tenor, interest rate, either with the help of a slider or by directly putting the numbers in the boxes. The home loan EMI calculator will then display the accurate results, and borrowers can plan their finances accordingly.
Individuals interested in availing a housing loan can check out the above-mentioned ways to reduce their interest rates. They can also use a housing loan EMI calculator to compute EMIs and make an informed financial decision.