Calculate your home loan early payoff and view detailed amortization schedules.
Calculate your home loan early payoff and view detailed amortization schedules.
Nowadays everyone dreams of buying their own home, but fulfilling this dream seems a bit difficult because home loan is a long-term commitment. Sometimes we want to repay our home loan quickly so that we can pay less money in interest and become debt-free quickly. For this, “home loan early payoff calculator” is a great tool that helps you understand how and how quickly you can repay your loan.
If you also want to pay off your home loan quickly, then today we will give you some tips and tell you how a home loan early payoff calculator works. In this article, we will discuss everything that will help you pay off your home loan quickly.
Home loan early payoff calculator is an online tool that helps you estimate how quickly you will be able to pay off your loan if you increase your loan EMI or additional payments. This tool gives you a clear picture of the remaining tenure of the loan, interest savings, and monthly budget.
Prepayment means that you repay some extra money apart from the regular EMIs of your loan. Many banks and financial institutions offer the option of prepayment in which you do not have to pay any extra charge. Putting in a little extra money every year can give you a lot of interest savings and can also reduce the loan tenure.
If your salary or income increases, then you can also increase your EMI. This will help you repay the loan quickly. Increasing the EMI means that you are paying off the principal amount quickly, which reduces the interest load.
Putting the money earned from any bonus or investment directly into your loan can be a smart decision. If you get any lumpsum amount like bonus, tax refund or inheritance, then putting it in the principal amount of your home loan can help pay off the loan quickly.
Many banks give you the option of loan restructuring. In this, you can change the interest rate or tenure of your loan. If you feel that the interest rate is too high, you can take a loan at a lower interest rate by refinancing from another bank, which will help you repay the loan quickly.
For many people, it is a good option to divide their EMI into half-yearly payments. This way you can get 13 EMIs instead of 12 in a year. With this one extra EMI, you can repay the loan very quickly.
If you want to understand how a home loan calculator works, here is a basic explanation:
First of all, you have to enter your total loan amount in the calculator. This will be the same amount that you have taken as a loan from the bank.
You have to enter the applicable interest rate on your loan. Every bank has a different interest rate, so it is also important to keep this in mind.
Loan tenure means for how long you have taken the loan. This time period can be 10 years, 20 years or 30 years.
This is the amount you want to pay extra so that you can repay your loan quickly. By entering this amount in the calculator, you can see how quickly you will be able to repay your loan.
If you are increasing your EMI, you can also enter your new EMI. The calculator will show you how much difference will be there in your tenure and interest payments.
Accurate Estimate of Interest Saving: The calculator tells you how much interest you will save if you repay your loan early.
Reduction in Loan Tenure: You also get to know how much your loan tenure will be reduced by increasing the prepayment or EMI.
Help in Financial Planning: You can decide how much money you can prepay by looking at your savings and monthly budget.
Plan to become debt-free: With the help of this calculator, you can make a clear plan to pay off your loan quickly.
By using the home loan early payoff calculator, you can make a strategy to repay your loan quickly. If you proceed with a little planning and discipline, you can repay your loan quickly and achieve your financial goals. You can also maximize your savings by using options like prepayment, increasing EMI and lump sum payment.
Get your home loan repaid quickly and enjoy financial freedom!