A home loan borrower has the option of transferring their loan to a new financial institution for better terms. Some of the most common reasons to opt for this transfer are to get a lower interest rate, easier repayment tenure, a top-up loan, or even better customer service.
However, financial experts suggest using a home loan balance transfer calculator before doing so. Here’s why:
- A home loan balance transfer calculator helps in showing the potential savings that can be made
In most cases, borrowers choose to transfer their home loans to save money on the overall cost of the loan. To ensure that transferring their loan would be a beneficial move, it is very important to make use of a home loan balance transfer calculator. This calculator helps in showing the borrower the amount that they can save by transferring their home loan to a new lender.
- This calculator displays the revised monthly instalments based on the new lender’s terms
There are cases where borrowers struggle to repay the monthly instalments of their home loans. To solve this problem, they can choose to opt for a home loan balance transfer to get an easier repayment tenure. Now, it would only make sense for a borrower to transfer their home loan if they are sure that the revised terms that the new lender is offering would make the loan affordable. This is why they should use a home loan refinance calculator. This calculator will help in displaying the revised monthly instalments based on the revised loan terms, based on which the borrower can decide whether transferring their loan would be a good move.
- It shows whether the revised interest rate helps ease the repayment of home loan EMIs
One of the biggest reasons that borrowers choose to transfer their home loans is to get a lower home loan balance transfer interest rate. Using a home loan balance transfer calculator will help in understanding how the revised interest rate affects the monthly instalments. This makes it possible for the borrower to check their budget and see whether transferring their home loan is worth it.
- This calculator is very easy to use and provides accurate results immediately
It is essential to make sure that the EMI calculations are accurate as any mistakes could lead to financial difficulties in clearing the loan. This is why it is advisable to use a home loan balance transfer calculator before shifting a home loan to a new lender. All that a borrower needs to do is fill up details about the outstanding loan amount, remaining tenure, and the revised interest rate. Based on these details, the home loan transfer calculator will display accurate EMI results in seconds.
Shifting a home loan from one lender to another is an important decision, and it is advisable to use a home loan balance transfer calculator before doing so. This will help in knowing whether doing this will help ease the loan repayment.