When trying to calculate the EMI or Equated Monthly Installment for any home loan package, one has to find out the best housing loan calculator that can serve the purpose. In this case, the EMI calculator can prove to be real handy and offer precise calculations, making decisions to come easily and effectively. When discussing about EMI, this can be stated as equal monthly payment, which is necessary for ensuring that balance of the loan becomes zero at completion of the loan term, assuming, no modifications are present within the interest rate.
Choosing a good one
The truth is that there does exist a good number of bpi housing loan calculators easily available on the web. Hence, undertaking thorough research is an absolute necessity for finding the right one that can suit the preferred needs and requirements. The other thing that needs to be done is to have the entire loan amount to be entered. Also, the person is required towards submitting the interest rate, which is applicable on the home loan package. It is to be ensured that the loan term is entered in the calculator in months.
The person has to be very sure if the payment is to be made in advance and/or not during the month end or start. As these details are clearly submitted, the EMI calculator starts to calculate everything that one has to be aware about, which includes amortization tables exclusively for loan duration.
It is one thing to have calculations done using the EMI calculator. However, the focus needs to be upon choosing the right type of home loan. In case, the loan selected is found short of the expectations, then it is likely to have a big negative impact on the individual’s financial condition. Hence, before having the agreement signed with any financial institution, the EMI that is required to be paid regularly is to be considered without fail.
Issues faced when making EMI payments
If the person’s income source is bright and expenses are kept in control, then making the EMI payment timely is not an issue. The problem arises when the person tends to overspend his monthly salary that could perhaps be low. Upon not making the timely EMI payment on the home loan, it is sure to have the credit rating impacted negatively. This is something that cannot be afforded, since poor credit rating would mean the loan application would not be approved by any financial institution, and even if done, the rate of interest on the home loan is likely to be very high. This way, the person could end up paying much more than what he actually had bargained for.
Solution
A better solution for avoiding the problem is to pay up all the dues within time and opt for any home loan package that is affordable. The terms & conditions are to be gone through carefully, before actually signing the agreement. Also, a good EMI calculator is to be used that offers correct results.