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18 FEBRUARY, 2022
It is convenient when you have plans for everything. For example, it is easy to manage your money when you know your monthly income and the various expenses you need to pay for. Having a financial plan makes it easier to use your money judiciously. Similarly, when you take a mortgage, you must know how much you need to spend on it. A mortgage spans for at least a decade and, so, knowing your monthly payments can help you draw a plan of your monthly expenses for the entire tenure. A mortgage calculator can help.
If you are planning to avail a mortgage, read on to know about a mortgage calculator.
What is a mortgage calculator?
A mortgage calculator is an online computation tool that you can use to compute your EMI. With a mortgage calculator, you can calculate the value of the monthly installments you need to pay towards your mortgage loan. A mortgage calculator uses the loan details to give you accurate results every time. A mortgage calculator works on the following mathematical formula,
P x R x (1+R)^N / [(1+R)^N-1]
P = Principal loan amount
N = Loan tenure in months
R = interest rate in months.
Following are the steps to use a mortgage calculator:
With a mortgage calculator, you can find your EMI, interest component and total repayment amount with just a click.
Advantages of a mortgage calculator
There are various benefits of a mortgage calculator. Read on:
You can find a mortgage calculator on any aggregators or lenders’ websites for free. You can use it anytime and for any number of times to compute your results. Moreover, you need not do calculations manually and save your time. You can compare different combinations and then apply for the specific loan amount and tenure with the lender of your choice.
By using the mortgage calculator, you can know the loan-related values at once. With this calculator, you can compute your entire repayment amount with the interest component. Once you know the bifurcation of the loan amount, you can determine a suitable tenure for yourself that gives you affordable EMI.
A loan against property calculator helps you plan your finances better. You know about your EMI and interest component before applying. It helps you make your monthly budget and analyze it better. It also helps you know about your financial liabilities beforehand so that you can plan for them efficiently. Once you know the EMI, you can also decide on the prepayment as per your financial comfort.
With a mortgage calculator, you can know the amount you need to pay for the loan against property before you avail it. It can help you borrow the right loan amount at a suitable tenure. However, you must know that the results of the calculator are indicative and can be changed by the lender.
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