Home loan options have become increasingly popular over the years due to their affordability. In fact, RBI’s recent repo rate cut has brought down home loan rates down to an all-time low of 7%. This is an opportune moment for people looking to avail home financing to either build or refinance their homes.
There are a lot of factors that go into determining the ultimate cost of a home loan. It is imperative that prospective borrowers assess the cost of a home loan across all of these parameters before picking an option. These are:
- Refinancing (for people already on a loan)
For your convenience there exists a home loan calculator for all of these purposes and we shall explore them in length.
- EMI Calculator
Home loan EMI calculator is the most popular ones around and tend to be the first thing that prospective borrowers take into account. This allows you to anticipate future fixed expenses to see how well it matches with your existing cash flow.
- Eligibility Calculator
The first step in availing a home loan begins with the home loan provider’s assessment of your eligibility for the same. Several factors such as age, monthly income, credit history, medical profile etc. are used to profile a prospective borrower for their eligibility. Using this calculator allows you to know where you stand and what you need to do in order to be eligible.
- Affordability Calculator
The state of your finances and the amount of liquidity you have access to plays a role in determining whether you can afford a home loan or not. Factors such as monthly income, existing financial obligations, tenure, and prevailing interest rates go a long way into determining how much you can afford to get, if you are eligible for a loan.
- Balance Transfer (Refinance) Calculator
Sometimes, home owners may find the need to refinance their home loan, i.e. transfer their home loan to another lender. This is usually done to take advantage of a lower interest rate in the market. Before making this move however, it’s important to know just how much you save (or lose) in the long term by using the refinance calculator.
Home loan calculators come in varying types and each one gives you a bit of information that can be put together to get an overall picture of where you stand in relation to the home loan.