Home loan transfer is a service provided by financial institutions to their borrowers. With this service, a borrower can effortlessly transfer their pending home loan from one financial institution to another. Borrowers typically transfer their house loans when they believe their lender’s interest rate is excessively high and they may obtain a home loan at a lower interest rate from another lender, but they lack the financial means to repay this loan and seek another loan. Under this arrangement, the new lender pays the borrower’s unpaid loan to the previous lender, and the lender then pays EMIs to the new lender instead of the old lender.
What is a home loan balance transfer calculator?
Most housing financial corporations provide an online tool called a home loan balance transfer calculator. This tool assists borrowers in determining how much extra money they will need to put in to cover the costs of transferring their house loan from one financial company to another. This calculator also assists the borrower in determining which EMIs are appropriate for them, as well as the length of time they need to borrow the money.
How to use a balance transfer calculator?
To calculate the potential savings of transferring the remaining house loan balance, use a balance transfer calculator. To use the balance transfer calculator quickly, follow the easy steps outlined below.
- First, provide the name of the existing loan’s lender.
- Mention the loan’s duration, including the start and end dates.
- Then, enter the property’s address.
- Set the values for the total loan amount approved, the remaining payback term, and the current home loan interest rate.
- Finally, enter the interest rate of the lending institution to which the balance transfer will be made, and then click Apply.
Using a balance transfer calculator is crucial for those willing to save on interest and to assess whether, at all, the balance transfer is worth it.
Benefits of using home loan balance transfer calculator
Some of the key benefits of using a home loan balance transfer calculator are discussed below:
- It is easy to use and doesn’t require any expert assistance. One only needs to input some key details, such as the existing interest rate and tenor.
- Using a home loan balance transfer calculator helps one understand the savings that can be made after the balance transfer.
- Once an individual uses a balance transfer calculator, he/she can also get an idea of the expected EMIs payable after the balance transfer.
- Also, individuals can get an idea about the possible returns if the savings due to home loan balance transfer are invested.
- With a home loan balance transfer calculator, individuals can also know the expected repayment tenor after the switchover and take an informed decision accordingly.
Therefore, after assessing all the benefits associated with using a home loan balance transfer calculator we can conclude that it is a useful tool and it is definitely worth the time and effort of the borrower. Borrowers who need to transfer a home loan from one financial organization to another should choose the best Housing Financial Corporation which can offer low-interest rates as low as 6.75% per annum.