Who wouldn’t like to have a place of their own someday? However, this is no easy feat. Real estate prices can get quite expensive, and most people need financial support to buy houses. One effective way of arranging for the funds is to rely on home loans. Now, it is important to understand that financial institutions keep updating their home loan plans. This means that if you have taken a home loan a few years back, it is possible to come across plans today that offer much better terms than your existing plan.
The good thing is that you do not have to miss out on the new plans’ benefits by opting for a home loan balance transfer. For those who are not aware of this transfer, it refers to a borrower choosing to shift their outstanding loan amount from one financial institution to another. However, before going ahead with this transfer, it is advisable to make use of a home loan balance transfer calculator. For those who are not familiar with this calculator, it is an online tool that is used to find the revised monthly instalments of the loan after getting it transferred to another lender.
For the home loan refinance calculator to provide EMI results, it will need you to provide the following information:
- Outstanding loan amount
This refers to the outstanding loan amount that is left to be repaid. It is advisable to opt for a home loan balance transfer when a major chunk of the loan amount is left to be repaid. This is so that you can repay the amount based on the revised terms of the new lender. If most of the amount is already paid off, you might not be able to save a significant amount on the loan repayment.
- Home loan balance transfer interest rate
A home loan balance transfer interest rate is the home loan interest rate that the new lender is offering. Some borrowers might feel that a slight change in the interest rate does not seem like much. However, even a slight reduction in the interest rate of the home loan can make a significant impact in bringing down the loan EMIs. Using a home loan balance transfer calculator can help in understanding whether the new interest rate helps in saving money or not.
- Remaining repayment tenure
In this field, you need to fill up the remaining tenure of your existing home loan. It makes sense to transfer the loan when most of the EMI payments in the tenure are remaining to be cleared. This way, you can pay off most of the loan with the new lender’s revised terms.
Based on the details you provide in the above-mentioned fields, the home loan balance transfer calculator will display the results of the revised loan EMIs. You can then decide whether to go ahead with the transfer or not. Now, before doing so, make sure to check with the lender about the documents required for a home loan balance transfer. This will make the process of transferring the loan go without any complications.
e loan without any complications.