As real estate started booming in India, Home Loan and EMI are become a vital part of our life. Most of the middle class people cannot afford to buy dream house without taking a home loan. However, Home loan is a huge financial commitment. It preceding for several years and squeeze your life. Every month it takes out more money from your pocket. You must be thinking how to calculate Home Loan EMI? To understand this in detail, you need to prepare your EMI table which is also known as amortization table or Home Loan EMI Calculator.
What is Home Loan EMI Calculator?
Home Loan EMI Calculator or Amortization Table shows the amount of interest and principal paid on loan along with the schedule. You can easily get following information from Home Loan EMI Calculator.
- Principal and interest are paid in any particular transaction.
- Total principal and interest you have paid at specific month/date.
- Principal payment is balance at the specific date.
- Total amount you will be paying towards thehome
- If you make extra prepayment how much amount will be cut off.
- You can figure out how much you need to pay extra to close the loan at the early date.
Here is our Home Loan_EMI_Calculator. You can download this Home Loan EMI Calculator from given link.
Prepayment of Home Loan:
Prepayment of Home loan and closing it at an early stage is a very good decision. You will able to save a lot of money via prepayment. Let’s take a small example how much interest you can actually save when you prepay your home loan.
Suppose you have taken the home loan of Rs 20 lakh for loan term of 20 years at 10.5 % interest rate. EMI of this loan comes out nearly to be Rs.20,248. If you do not opt for any prepayment, you will end up paying Rs 20 lakh principal and net interest of Rs.26.4 lakh.
On the other side, if you opt to pay prepayment 50,000 Rs/- every year, term of this loan will be reduced to 12 year and net interest paid will be Rs 14.8 lakh. So actually you can save total Rs 11.7 lakh which you can save for your future.