Owning a house is considered to be one of the most significant achievements in an individual’s life. Of course, this is no easy task to do as property prices can get quite expensive. What most homebuyers do to afford owning a property is apply for home loan plans to get the financial assistance that they need. Most lenders offering home loans provide a tenure of 20 years to repay the loan in monthly instalments. This makes it easier for the borrower to afford the loan and comfortably pay it off over a long period of time.
Now, before applying for a home loan, it is very important to make sure that the loan can easily be repaid. Some borrowers are not careful about choosing a plan that is suitable to their budget and this has led to repayment complications. Since this can lead to legal troubles, not to mention your credit score taking a hit, it is better to be ready with a sound repayment plan even before applying for a loan. For this, it is advisable to make use of a home loan affordability calculator.
If you are hearing about this calculator for the first time, learn why it is so important to make use of one:
- A home loan affordability calculator will give you accurate results
Before borrowers could use a home loan affordability calculator, the only way of learning about a loan’s monthly instalments was through manual calculations. Now, this could lead to mistakes which could cause problems while repaying the loan. Luckily, you can now use an affordability calculator for getting accurate results that can be relied on. This way, you will be able to select a home loan plan that is affordable.
- It can help in finding a convenient repayment tenure
While applying for a home loan, you need to pick a suitable repayment tenure to clear the loan with ease. By using a home loan affordability calculator, it is possible to calculate the loan’s EMIs with different tenure values. This way, you can easily find a repayment tenure that is best suited to your budget.
- Many find it simple to use
While manually calculating the loan’s monthly instalments can be time-consuming, using an affordability calculator is really simple. All you need to do is provide details regarding your existing debt obligations, monthly income, down payment, home loan interest rate, and repayment tenure. With these details, the calculator will display a loan amount that can be applied for.
Using a home loan affordability calculator is quite essential to make sure you can afford the home loan that is being offered. Make sure to not confuse this home loan calculator with a home loan eligibility calculator. An eligibility calculator, as the name suggests, will display the loan amount you can receive based on the lender’s eligibility criteria. Both these calculators can prove to be of great help and are freely available on most lenders’ websites.