Many people out there cannot afford to buy a home of their own. Therefore, they prefer taking loans to buy a house, and then eventually, they pay the borrowed amount of money along with a certain amount of interest. It is also known as the term mortgage. One does not need to pay much cash upfront if he has applied for a home loan. Most Middle-class people go for a home loan because they cannot afford to buy a house at a go. This is because a house is one’s life’s most significant investment. Therefore, it has skyrocketing costs. In this regard, mention may be made of a home loan calculator.
They are available on all lender websites, and they are of great help in calculating the EMI of your home loan. People apply for home loans even if they have the money to afford them because they intend to free up funds for investing in other crucial purposes, personal reasons, or business-related issues. For being eligible for the loan, there are specific criteria you need to fulfill.
Eligibility criteria for a home loan.
Many people prefer using a home loan eligibility calculator to know the criteria, while others already know about it. Given below are the eligibility criteria for home loans: –
- If someone is applying for a home loan, the applicant needs to reach a certain age. The loan term, in general, is capped at a maximum of 30 years.
- For salaried applicants, the age limit varies from 21 years to 65 years.
- The minimum salary of the applicant should be 10,000 per month.
- The loan term should be a maximum of 30 years.
Steps to calculate home loan EMIs Online.
The affordability of a home loan applicant depends on the amount that he will be paying as EMI. The calculation of the EMI is very important if you are planning to take a new loan. Following are some significant steps that guide you on how to calculate home loan EMIs Online: –
- Make a clear decision about the loan amount: If you are willing to get a brief knowledge regarding the eligibility points of your home loan, it is desirable to start with your income per year. You can apply for a home and get an amount multiplied by 5 with your yearly income. But to be very honest, this is not constant. It might vary from one person to the other depending upon the salary, the profession, and the ability to repay. Moreover, the property’s value also has a significant role in determining the loan amount. In general, the home loan amount is 90% maximum of the value of the property. But many lenders do not abide by these criteria. They end up offering only 80% of the property value in the form of a home loan. The loan amount is inversely proportional to the value of a property offered as a home loan.
- Find the right tenure for your Loan: If we generally talk about home loans, it is undoubtedly imperative to know that they are long-term loans. It can even rise to 30 years. One of the most important factors is that the home loan duration is directly proportional to the interest rate that you have to pay. In general, the lenders permit a tenure where one can repay the loan by the time he reaches 60. If you are of age 45, then your tenure will be 15 years, and if you are of 30 years, you get the facility of continuing the home loan till the next 30 years. However, after you reach 60 years of age, you have no option of continuing it.
- Make sure you get one of the best interest rates: You need to ensure that your current home loan interest rate on the home loan is a standard one. Borrowers always tend to achieve the lowest interest rates that are levied on a home loan. But this does not turn out to be feasible at all based on several aspects. Every lender possesses his own set of rules and regulations, and the lender has to abide by them to get a home loan.
Above are some typical steps that will help you gain some idea about calculating the EMIs of your home with the help of various tools that are available online. These three are the most crucial steps in this aspect, and one needs to get knowledge about all the factors related to home, keeping in mind the eligibility criteria. A home loan calculator and the factors mentioned above will be a lot beneficial in calculating the EMIs of your home loan online.
