Borrowers are always looking for loan plans that will cost them the least amount of money. When it comes to home loans, getting a low interest rate is a very important aspect as this can have a significant effect on the monthly instalments of the loan. Now, if you have already taken a home loan a few years back, it is possible to find a current home loan plan that is much better than yours. In this case, it is possible to opt for a home loan balance transfer. This involves getting your loan transferred from one lender to another for better benefits.
Now, to understand whether this transfer would be a beneficial move, it is important to make use of a home loan balance transfer calculator. This is a tool that helps provide an estimate of the money you can save by transferring your loan to a new lender.
Take a look at how you can determine how much money is getting saved by refinancing a home loan with the help of a home loan transfer calculator:
1. The calculator helps you learn about the revised EMIs after the transfer
You need to know whether the monthly instalments of the home loan are suitable to your budget. Using a home loan refinance calculator can help in doing just that. After the calculator provides the EMI results for the new loan plan post the transfer, you can take a decision on whether to go for it or keep looking for better options.
2. You will learn about the savings made by refinancing the home loan
As a borrower, the primary goal is to minimise the expenses of taking a loan. Most borrowers opt to transfer their home loans to new lenders in search of lower interest rates, which reduce their home loan EMIs. Now, a home loan refinance calculator is going to display the amount that is getting saved by going through with the transfer. With this information, you can decide whether transferring your home loan is a good alternative.
3. The calculator is really simple to use
Without the help of a home loan balance transfer calculator, borrowers would have to manually calculate the monthly instalments of their loans. This could possibly lead to mistakes, which could prove to be a problem at the time of repaying the loan. Thanks to this calculator, all that you need to do is to provide details regarding the outstanding loan amount, the loan’s repayment tenure, and the new interest rate. Based on this, the calculator will immediately provide the EMI results for the home loan.
Using this calculator is a great way of finding out whether opting for a home loan balance transfer is a good decision or not. You can find this calculator on most financial institutions’ websites and can use it free of cost. Doing this will help you learn whether the revised monthly instalments of the new loan plan are suitable or whether you need to find a better deal.