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Home Loan Calculator
Table of Contents:
Formula
House Value = monthly *((1+I /(100*12)years*12 -1)/ (I/100*12)*(( I/100*12))+1) years*12)
Where,
Monthly = (monthly income + other income – monthly expenditure) *28/100
I = Interest
Home Loan refers to money that is borrowed from a bank or any similar organization for the purpose of buying a house or apartment. Home Loan calculation is based on the EMI of the monthly income that is earned by the loan owner. A home loan requires you to pledge your home as the lender's security for repayment of your loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.
Home loans, also known as mortgages, use the borrower's home for collateral. The amount of home loan you are eligible for depends on factors like your occupation (whether you are salaried/ self-employed), your income, the interest rate charged by the bank and the tenure of the loan.
Example:
Calculate the Home Loan Interest rate for the given details.
Monthly Income = Rs. 5000
Other Income = Rs. 2000
Monthly Expenditure = Rs. 500
Term Loan = 1 years
Annual Interest Rate on loan (0 -30%) = 5%
Solution:
Apply Formula:
House Value = monthly *((1+I /(100*12)years*12 -1)/ (I/100*12)*(( I/100*12))+1) years*12)
Monthly = (monthly income + other income – monthly expenditure) *28/100
Monthly = (5000+2000-500)*28/100
Monthly = 6500 *0.28
Monthly = 1820
House Value = 1820 *((1+0.5/ (1200)12 -1) / (0.1 / 1200)) +1) 12
House Value = Rs. 21259.82
Total Interest = Rs. 580.18
Monthly Payment = Rs. 1820