It is common for financial institutions to keep revising their home loan plans. This is done to attract more customers into taking loans. Now, if you have taken a home loan a few years back, it is quite likely that you will find new home loan plans offering better terms. This does not mean that you have missed out on a loan plan with better terms. Lenders allow borrowers to apply for home loan balance transfers. For those who are not familiar with this type of transfer, it involves shifting your existing home loan from one lender to another. Some of the most common reasons why borrowers prefer to transfer their home loans are because of a lower interest rate, better repayment tenure, improved services, and/or even to get a top-up loan.
Now, before opting for a home loan balance transfer, it is very important to first make use of a home loan refinance calculator. For those who are not familiar with the workings of this calculator, take a look at 4 important reasons for using one:
- A home loan balance transfer calculator is very simple to operate
Before borrowers had access to a home loan balance transfer calculator, the only way was to manually calculate a loan’s monthly instalments. This could lead to mistakes, ultimately causing problems in repaying the loan’s EMIs. However, this does not have to be a problem anymore. With a home loan balance transfer calculator, you can easily find out about the loan’s EMIs. You simply have to provide information regarding the loan amount, interest rate, and repayment tenure, based on which the calculator provides accurate results.
- This calculator displays the potential savings after refinancing the loan
The main goal of opting for a home loan balance transfer is for borrowers to ensure that they have managed to save money on the overall cost of their loans. This is why it is important to make use of a home loan transfer calculator. This calculator displays the potential savings that a borrower can make based on the information they provide.
- It shows the revised EMIs based on the new lender’s terms
If you are struggling to repay your current loan and are looking to transfer it to another lender for easing the repayment, it is advisable to use this calculator beforehand. This is because a home loan balance transfer calculator can help in displaying the new EMIs with the revised terms, so you can decide whether the new deal is suitable to your budget.
- It helps in understanding whether the revised interest rate helps in easing the repayment
One of the most common reasons that borrowers transfer their home loans is because of a lower interest rate. You can make use of a home loan balance transfer calculator to understand how the revised interest rate affects the loan’s EMIs.
Most financial institutions make this calculator freely accessible on their official websites. You can use your smartphone or laptop to use this calculator anytime. After using this calculator, you can take an informed decision on whether to go for the home loan balance transfer and avoid any unnecessary repayment problems.