Those planning to avail of a home loan to fund the purchase of their home must mandatorily use a home loan EMI calculator to plan repayment as well as other things. A home loan calculator is an online tool that allows borrowers to calculate their EMIs for their desired loan amount. The basic home loan calculator requires borrowers to enter three different values: desired home loan amount, desired home loan tenor and the rate of interest they are being offered. As soon as a borrower enters these values, the home loan calculator gives the borrower their tentative EMIs. The home loan calculator is a highly beneficial tool. Let us look at how it can help borrowers planning to avail of a home loan. 

It Helps Borrowers Plan their Monthly Budget to Accommodate EMIs 

The home loan EMI calculator gives borrowers their tentative EMIs. Once borrowers know the EMIs they will be required to pay each month, they can make adjustments in their monthly budget and how they spend on things to ensure they can easily afford their home loan EMIs. Thus, a home loan EMI calculator helps borrowers avoid late fees and penalties. 

It Helps Borrowers Plan Prepayments 

Using a home loan EMI calculator, borrowers can understand how prepayments will change their EMIs as well as their total interest outgo. These calculators also allow borrowers to figure out the optimal time for loan prepayments. 

It Helps Them Compare Loan Offers 

Borrowers must avail of a home loan after proper planning. They must talk to as many different lenders as possible and choose to go with the one offering them the best loan terms and conditions, including the lowest home loan interest rates. Low home loan interest rates allow borrowers to save a lot of money in the long run by way of reduced interest payout. Using a home loan calculator, borrowers can compare different loan offers and figure out the loan offer that would be best for them. 

Home Loan Calculators Help Borrowers Save Time and Energy 

Home loan calculators are quick. Borrowers can calculate home loan EMIs manually also. However, manual calculations are tricky. Further, they are also prone to errors. Home loan calculators take only a few seconds to calculate a borrower’s home loan EMIs. Further, the answer can be trusted for accuracy every single time, which is crucial when one is planning to avail of a big-ticket loan, such as a home loan.