The Different Methods Of Calculating Home Loan EMI

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The Different Methods Of Calculating Home Loan
EMI
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• Most first time borrowers are under assumption
  that calculating home loan EMI is easy. All you
  need is a housing loan EMI calculator. You have
  to agree with that. It does seem like if you have
  EMI calculator for home loan, all you need to do
  is enter right numbers. But, believe it or not it
  is more complex than that. Here are two reasons.
  Firstly, lots of factors in the equations remain
  unaccounted for. Secondly, EMI calculator will
  not help you get the specifics you actually need.
  So, here are three common methods.

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Manual calculations

• Most of the formulae for home loan EMI
  calculations are available online. You can easily
  note them down and calculate EMI as per repayment
  option, home loan tenure, etc. The ease of doing
  them manually depends on your mathematics skills.
  But, most websites do offer an example in order
  to assist readers calculate home loan EMI. This
  process is the most tedious one. But, there are
  few high-level calculations you cannot see with
  online tools. For example, EMI as per balloon
  repayment option. Manual calculation is the way
  to go.

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Home Loan EMI Calculator
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• Online calculations
• Most borrowers are familiar with online EMI
  calculators. Thing is, there are a lot of home
  loan emi calculator in India. All of them do not
  offer real help. Some are just an online version
  of basic mathematical calculator. Yet, it does
  simplify your job, especially if you are not a
  maths geek. But, there are some efficient EMI
  calculators for home loan. They support your
  calculations well with several additional online
  tools like amortization table. DHFL has one of
  the best EMI calculators in housing finance
  industry.

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Computer calculations

• You can use excel sheets on a computer to get the
  job done. It will be as good as some of the
  online EMI calculators. But, with basic
  asthmatics skills and few formulae, you can check
  the basic structure of repayment options too.
  However, it is not as good as some of the
  advanced online tools.
• Either way, the best method for your calculations
  is the one that give accurate results instantly.
  Online home loan calculator is a great choice but
  not for more customised calculations. However,
  you will need to know the following before you
  calculate the EMIs and other details. For
  example, cost of property, processing charges,
  stamp duty, legal fees, and realistic interest
  rates. This information can be made available to
  you when you meet a relationship manager for the
  same. Even a third-party personal finance
  consultant is a great person to meet for these
  details.
• Source http//www.sooperarticles.com/finance-arti
  cles/loans-articles/different-methods-calculating-
  home-loan-emi-1382560.html

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