Almost every individual dreams of having a place of their own. However, this dream is one that requires financial support, as real estate can be quite expensive. To help homebuyers, lenders offer home loans that provide the finances required to complete the property purchase. Now, a borrower has a lot to think about before taking a home loan. This includes getting a sufficient loan amount, an affordable interest rate, and suitable repayment tenure. Lenders keep offering new loan plans to attract new customers. However, this does not mean that borrowers who have already taken home loans cannot get better deals.
If you come across a home loan with terms that are better than those of your current plan, it is possible to opt for a home loan balance transfer. With this transfer, the outstanding amount of your home loan would get transferred to another lender. Now, before going ahead with this transfer, it is important to first make use of a home loan refinance calculator. This calculator is a tool that helps in displaying the monthly instalments you would be paying after transferring your home loan to the new lender.
Let’s understand how a home loan balance transfer calculator helps borrowers looking to transfer their home loans:
- A home loan balance transfer calculator displays potential savings that can be made
Most borrowers choose to transfer their home loans to get a lower interest rate. This is because a change in the interest rate can significantly bring down their monthly instalments. A home loan balance transfer calculator can display the potential savings you can make after transferring the loan. Based on this, you can take a decision on going ahead with the home loan balance transfer.
- It helps in understanding the revised EMIs once the loan is transferred
The whole purpose of transferring your home loan is to make sure that the revised EMIs make the repayment easier. To make sure of this, use a home loan balance transfer EMI calculator to know what the monthly instalments would be once the loan is transferred. Based on this, you can decide whether the new EMIs are easier to pay off or not.
- This calculator is a tool that is very easy to operate
Before this online tool was available, borrowers had to calculate the monthly instalments of their loan manually. Now, manual calculations can lead to errors, which can cause problems in the repayment plan of the home loan. This is where a home loan balance transfer EMI calculator can help in avoiding such problems. This calculator will display accurate results based on the information that you provide. All it needs is details regarding the loan amount, repayment tenure, and the loan’s interest rate.
With the help of a home loan balance transfer calculator, you can decide whether transferring the home loan is a good option or not. You can find this calculator online on any lender’s website. It is free for anyone to use without any restrictions.