What is Home loan amortization table? How to make own Home Loan EMI Calculator ? If you looking answer of these questions, you are at right place. Today I will be sharing useful information about Home Loan EMI Calculator, Prepayment, and Course.
Home Loan and EMI is an integral part of our life. One cannot afford to buy dream house without taking a home loan. However, Home loan is a big financial obligation. It last for several years and squeeze you. Every month it takes out more money from your pocket. You must be thinking how? 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 or Amortization Table?
Home Loan EMI Calculator or Amortization Table shows the amount of interest and principal paid on loan along with the schedule. You can get following information from Home Loan EMI Calculator.
- How much principal and interest are paid in any particular transaction.
- How much total principal and interest you have paid at specific month/date.
- How much principal payment is balance at the specific date.
- How much total amount you will be paying towards the home loan.
- If you make extra prepayment how much amount will be chop off.
- You can figure out how much you need to pay extra to close the loan at the early date.
So here is Simple Home Loan EMI Calculator. You can download this Home Loan EMI Calculator from given link.
Prepayment of Home Loan is Good Decision
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.
Mr.X has taken the home loan of Rs 20 lakh for loan tenure of 20 years @ 10.5 % interest rate. EMI of this loan comes out to be Rs.20,248. If Mr.X does not opt for any prepayment he will end up paying Rs 20 lakh principal and net interest of Rs.26.4 lakh.
If Mr.X is wise person like you and opts to pay 50,000 Rs/- every year towards repayment (total repayment 6 lakh), tenure of this loan will be reduced to 12 year and net interest paid will be Rs 14.8 lakh. So actually Mr. X can save hefty Rs 11.7 lakh which can help him for building good retirement corpus or may be useful for other needs.
Formality after Closure of Home Loan
You need to complete following formalities after closure of home loan.
- If you have paid prepayment penalty make sure to take receipt of the same.
- Get back all original documents from the bank. Make sure all documents are in good condition. Once you get all documents make sure to store it at a safe place.
- Make sure to take NOC certificate from the bank. This will serve as proof that property is now debt-free and it belongs to you entirely.
- If you have taken home loan from the bank like SBI you must have done lien. Lien is right given to another by the owner of the property to secure a debt. Make sure to terminate this lien. A home loan closure is incomplete without this process.
- An optional step is to get your CBIL credit score updated. This will increase your credibility.
Over to you
Do share this article with your friends who are looking for EMI Calculator or trying to get information about Home loan prepayment and closure.
Show them how this calculator helped you.
Show them how they can save hefty amount by doing home loan prepayment.
And Don’t forget to comment below, because your comments are the fuel for me to write better in future. 🙂