How to Calculate Home Loan EMI: A Step-By-Step Guide
Are you ready to turn your dream of owning a home into a reality? Exciting times! But before you start browsing listings and visiting open houses, it's important to understand the financial commitment of a home loan. Have you thought about how you'll calculate your Equated Monthly Installment (EMI)? Don't worry if you haven't - that's exactly what we're here for! In this guide, we'll help simplify the process and provide you with valuable insights to make informed decisions. So let's get started! Understanding Home Loan EMI When you take out a home loan, the Equated Monthly Installment (EMI) is a fixed amount that you pay each month. It comprises two components: the principal amount, which is the money you borrow from the bank, and the interest, which is the cost of borrowing that money. Every time you make an EMI payment, a portion of it is used to reduce the principal amount, while the remainder goes towards paying off the interest that has acc...