What Is The Right Process To Select an EMI Option While Purchasing a Property - Nick Statman

According to Nick Statman, do not forget terms such as loan tenure and interest rates while choosing the EMI. With these steps in mind, a Region ought to be on the right track to owning the dream prop

Purchasing a property is something people always wish for. Much as owning a house is a good thing the money to be used in purchasing the house comes as a worry. According to Nick Statman another important decision one has to take while buying a property is on what EMI (Equated Monthly Installment) option they should go for. Appliance on the right techniques is vital when choosing the best EMI option when buying a property. In this article, we will take you through the right process of choosing the best EMI option.

Step 1: Understand the Basics of EMI

EMI, which stands for Earned Media, is an important concept still unfamiliar to many people. EMI means Equated Monthly Installment, under which the borrower repays a predetermined sum of money to the lender bank or any other financial institution on a monthly basis for a particular period. EMIs stand for Equated Monthly Installment, which is a part of a loan and consists of principal and interest. Also, the repayment tenure and the rate of interest fix the EMI or the monthly instalment amount.

Step 2: Determine Your Budget

The first thing that one needs to do when choosing the right EMI option is to set their limits. Which home loan EMI can you comfortably pay each month? This is an important question to ask because your entire loan process will be affected. According to Nicholas Statman, remember that EMI will vary according to the income and expenses you make as a customer. You should take time and work out your borrowings index and determine the amount which you are willing to pay.

Step 3: Choose the Right EMI Option

With your budget, your loan eligibility and the loan offer given to you, you can make the right EMI decision. Based on the example above, you should strive to get the lowest EMI amount that is within your financial possibility. But do not just look at the interest rate alone. The loan tenure has to be looked at as well. A longer tenure will reduce EMI but will again translate into higher overall interest to be paid on the loan amount. In the same way, with an increase in interest rate, the monthly instalment or EMI will also increase. Hence, there are two aspects which can be balanced before selecting a particular loan. The EMI and the tenure or the combination of both, as well as the interest rate.

Conclusion

Choosing the appropriate EMI while buying a house comes a long way, but it can be made easy by the right planning and research. Always be sure to decide your budget, check your ability to qualify for a loan, compare various loans, and finally select the most appropriate EMI based on the most suitable loan offer. According to Nick Statman, do not forget terms such as loan tenure and interest rates while choosing the EMI. With these steps in mind, a Region ought to be on the right track to owning the dream property.