Buying a home is one of the biggest milestones in an individual’s life. A home of your own gives you comfort, ensures your family is safe while you are away, increases your financial worth in the society, and also acts as a major asset which can be converted later to get through your rainy days. However, your home can turn into a nightmare if you don’t plan your finances and your EMI strategically. Paying your EMIs on time is absolutely vital. In fact, most housing loan experts suggest creating a repayment plan in advance and submit it with the Home Loan application.
Summing up, to ensure taking a Home Loan to finance the purchase of your house turns out to be fruitful, plan your Home Loan EMIs properly. How can you do it? Well, check out the following steps for a better understanding.
- Use Home Loan EMI Calculator for Calculations
Your EMIs should be planned as per your monthly income and expenses instead of how quickly you want to dispose of your loan. Keep 50% of your monthly income aside to pay for the inevitable living needs. The other 50% can be used to pay the EMIs. For instance, if your monthly income is Rs 30, 000; your Home Loan EMI shouldn’t exceed Rs 15, 000. Cap the EMIs within 43% of your monthly income to be on the safe side.
How can Home Loan EMI calculator help? You can use the EMI calculator and calculate the time you’ll need for repayment. The calculator allows you to adjust the tenor and EMI amount to reach a fitting EMI + Tenor combination.
- Sync your Loan Account with your Bank Account
Lastly, sync your bank account with your loan account. The EMI will be deducted automatically. However, make sure your account balance is sufficient at any given point of time to pay the EMI.
How to Plan Your Home Loan EMIs Efficiently
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.