A mortgage loan calculator is a digital utility tool used to calculate a loan against property EMI applicable to the loan. This instrument can derive accurate data based on loan amount borrowed, mortgage loan rate of interest, loan tenor, etc. Using this calculator, individuals can be in an advantageous position with a clear idea of consecutive monthly instalments and the amount of interest payable, which will help them plan their repayment in advance. 

Benefits of Using A Mortgage Loan Calculator

A mortgage loan calculator performs accurately to determine an exact payment schedule and provides break-ups of the total amount payable. Here is a list of benefits of a mortgage loan calculator: 

  • Unlimited and Free Usage: A mortgage loan calculator is a free tool; hence, no additional charge is required for any number of usages. In addition, individuals can fetch information, including interest and principal amount of every EMI, outstanding balance payable, etc., by adjusting figures as per their requirements. 
  • Quick Calculations: The conventional method of calculating EMIs using pen and paper is time-consuming. However, the online mortgage loan EMI calculator fetches the data in no time. With a few simple steps, borrowers will be able to understand the charges associated with loans against property. 
  • Derivation of Accurate Data: The manual calculation of EMIs of loans against property increases the chances of unavoidable errors. In addition to this, occurrence of errors can lead to inappropriate planning and decision making. On contrary, the in-built algorithm in mortgage loan calculators enables derivation of correct numbers, thereby eliminating any errors. 
  • Better Financial Planning: The systematic usage of a mortgage loan calculator ensures trouble-proof financial planning for future. Borrowers can plan the budget and determine the ideal tenor of the loan against property correctly with the knowledge of the actual EMI amount beforehand. Hence, better monetary decisions are taken by reducing upcoming financial risks. 
  • Non-Disclosure of Personal Details: This tool functions by ensuring complete security and maintaining the confidentiality of personal details. As a result, individuals can use the tool without entering any personal information and will be able to derive accurate and exact data related to any loans. 
  • Comparison of Loan Offers: The mortgage loan calculator ensures a better understanding of the different loan offers provided by financial institutions. With the help of this tool, customers can compare the loan offers and will be able to choose a loan that matches their requirements. 

Moreover, various reputed financial lenders provide pre-approved offers to borrowers for hassle-free loan processing and disbursal. To check the pre-approved loan offers, individuals can provide their contact details. 

Factors to Keep in Mind While Using Mortgage Loan Calculator

The calculator enables easy calculation of monthly mortgage loan EMI by checking the borrowers’ liabilities. Additionally, there are two factors to keep in mind while computing monthly instalments: 

  1. Principal Loan Amount: Principal amount is the loan amount applied for. As per the RBI guidelines, the maximum amount granted or loan-to-value ratio for a loan against a property is 90% of the market value of a property. Hence, financial institutions will cover the specified amount as loans to the borrowers. 
  2. Repayment Tenor: Repayment tenor is the time span taken to repay a particular loan. As a loan against property is a type of secured loan, borrowers of such loans benefit from extended repayment tenor compared to unsecured loans. A mortgage loan calculator performs a function to derive an exact repayment tenor based on principal and mortgage loan rate of interest. 

Individuals can use a mortgage loan calculator by entering actual loan amount, repayment tenor, and interest rate. As per choices of borrowers, this tool allows adjustments of the figures till the achievement of preferred results, thus ensuring optimum efficacy.