Loans are an integral part of modern-day life. From car loans and personal loans to home loans and credit cards, we rely on credit to help us fulfill our various obligations and aspirations. All loans are repaid through EMIs. This arrangement works in favour of loan borrowers, allowing them to repay credit comfortably, without feeling financially strained. 

Mortgage loans, property loans, or loans against property are loans secured by pledging a residential or commercial property as collateral. These loans are sanctioned against residential or commercial properties or land. The borrower agrees with the lender, giving them the right to sell the pledged property in case of a loan default. While loans against property or mortgage loans are entirely safe, borrowers are advised to be extra cautious and plan their repayment strategy thoroughly as a loan default can cause the loan borrower to lose ownership of their property. In this regard, the use of an mortgage loan emi calculator is highly recommended. 

EMI Calculator for Mortgage Loans: What Is It? 

Like all loans, those secured against a property are also repaid in the form of EMIs. The amortization schedule provided at the beginning of the loan period allows loan borrowers to understand the breakdown of EMIs each month. The EMI calculator for mortgage loans is a free-to-use online tool that applicants can use to calculate their tentative EMIs for the loan amount they wish to borrow and the number of years they need to repay the loan.  The home loan EMI calculator can help in many ways. However, before we discuss its benefits and uses in the mortgage loan process, let us look at the process of using this online tool. 

Mortgage Loan Calculator India: How to Use? 

Mortgage loan calculators are easy to use. To calculate your mortgage loan EMI using this calculator, you will be required to enter only three details: 

1. Loan Amount: A mortgage loan-to-value calculator will tell you that the LTV ratio for mortgage loans can go as high as 60% to 70%. However, loan applicants must keep in mind that a high LTV ratio loan is always difficult to repay due to the large loan amount. Further, high LTV ratio loans can reduce borrowers’ negotiating power and the ability to demand a low interest rate along with other equally important terms, such as a long repayment tenor to ease the burden of loan repayment, low loan processing, and other fees. Borrowers must carefully decide their loan amount, always choosing to ask for what they will be able to comfortably repay. 
2. Loan Tenor: Striking the right balance between affordability and low-interest payout is important. This means borrowers should neither opt for a long repayment tenor as it will increase the cost of borrowing funds by increasing the interest payout on the loan nor should the borrower opt for a very short loan tenor as it can make the loan difficult to repay. 
3. Rate of Interest: Mortgage loan applicants must always shop for the lowest mortgage loan interest rates in India as a low rate of interest translates into low EMIs, low-interest payout, and low cost of borrowing funds. 

A user is required to enter only these three details into these calculators. Once this is done, the calculator then delivers results, which include tentative EMIs, total interest payout, the total cost of borrowing money under LAP, and an elaborate amortization schedule that provides a breakup of each of your EMIs and how it will be divided to cover the interest and principal on your loan. 

EMI Calculator for Mortgage Loans: Benefits and Uses 

The mortgage loan calculator is a very useful tool. Here are some of the benefits associated with its usage. 

1. The EMI calculator provides accurate results quickly. If the combination of loan amount and tenor you have in mind results in unaffordable EMIs, you can use the calculator to try different combinations of loan value and tenor and arrive at a combination that gives you EMIs that you can afford. This way, the EMI calculator saves you from committing to a loan that you may find difficult to repay, thereby saving you from late fees and other hassles, in the long run. Additionally, since these calculators are free to use, borrowers can use the calculator as many times as they like without having to pay a fee. 
2. The amortization schedule provided by the EMI calculator for mortgage loans can help you with prepayment planning and foreclosure. If you want to pay off your loan before the agreed loan tenor, you can refer to the amortization schedule to figure out the most ideal time for both prepayments and foreclosure and save as much as you can.

To conclude, a mortgage loan calculator can simplify loan repayment planning and make your life much easier. So, make sure to include this tool in the mortgage loan application process.