A home loan calculator is a tool that is indispensable for anyone who is planning to take a home loan in the near future. Before even getting started on the paperwork for the loan, it is important to know what the instalments for that loan will look like and that is where the calculator comes in. how it works is by taking information like loan amounts, tenures and interest rates, it can calculate what the monthly instalments for the loan will be. It simplifies the process of making the decision on how much money can be borrowed and more importantly, how affordable is the loan.
The design of the BankBazaar home loan calculator is such that all it needs is 4 tiny bits of information and in return, it can show exactly what the repayment of the loan will look like. Once the loan amount, tenure, interest rates and the processing fee has been entered, it calculated the total amount that needs to be paid back.
Monthly Instalment: The biggest feature of the calculator is that it can calculate the exact amount that needs to be paid as instalments every month. This amount is calculated based on the total amount due, i.e. loan amount + processing fee + interest due.
Processing Fee: Once it has the information, it can even show the exact amount that will be paid as the interest on the home loan and the amount that is being charged as the processing fee.
Amortisation: Another feature of the calculator is that it can show the amortisation details which paint the picture of how the loan will progress over the coming years.
Accuracy: Doing the calculations manually could mean that a single mistake will force you to redo all the calculation from scratch. The calculator can do the same thing in seconds which means a lot of headache is avoided.
The loan calculator offers benefits that range from saving time on calculations to knowing exactly what the monthly expense will look like after the loans are paid for. Some of the key benefits of the calculator are:
Time Saving: Since there is no need of pencils and papers to calculate exactly how much needs to paid every month, the calculator saves you a lot of time.
Endlessly Adjustable: All four details can be changed at any time to see the effect they will have on the monthly payment which helps decide on the loan amount and period that suits you the most.