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How Much Can You Save on Your Existing Home Loan? Calculate Here!
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If you are servicing a home loan, you may have heard about home loan balance transfers. With a home loan transfer facility, provided by every lender, you can transfer your existing home loan to another lender for additional benefits. When you transfer your loan, you can get lower interest rates, a top-up loan, a chance to restructure your loan, and better customer service. Most people transfer their loans to get lower interest rates so that they can reduce their cost of borrowing and save money. However, it is not warranted that every drop in interest rates means savings for you. Many factors determine your savings when you transfer your loan like the new interest rate, the tenure remaining, etc. Therefore, you must check your savings before applying for a home loan refinance. A home loan balance transfer calculator can help you do so. Continue reading to understand more about it.
What is a home loan balance transfer calculator?
A home loan balance transfer calculator is an online computation tool that lets you determine the amount of money you would save by transferring your loan to another lender. It factors in your current financials like your current Equated Monthly Instalment (EMI) amount and remaining tenure and then decides the savings by considering the loan requirement and new interest rate. A home loan balance transfer helps you calculate your savings before you opt for the balance transfer to help you make the right decision. Kotak’s home loan balance transfer calculator is available for free and is designed in a manner that makes calculating your savings on home refinancing seamless.
How to use a home loan balance transfer calculator?
There are a few easy steps to using a home loan balance transfer calculator:
Know your savings
By using this calculator, you can find out what your savings will be if you opt for a home loan balance transfer. You can adjust the variable figures to change the results too. This calculator will help you make an informed decision. You can then know if you should transfer the loan or stick to your current lender. Experts suggest you should transfer the loan only when you can save a substantial amount. You can use the balance transfer calculator at any time of the day and any number of times. Also, it is easy to use and gives accurate results.
Bottom line
You can know your balance transfer savings by using a home loan transfer calculator. However, you must know that you might have to incur various costs to transfer the loan. Therefore, it is best to do a cost-benefit analysis before switching the loan. Moreover, you can also negotiate with your existing lender to revise your interest rate if a balance transfer does not seem a feasible option.
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