Home loan balance transfer calculator is an online tool that helps in calculating the benefits of transferring the outstanding balance of a home loan to another lender with a lower rate of interest. It is an ideal option for those borrowers who are currently paying a higher EMI on their home loan.
In this article, we will discuss the top ways to maximize savings with a home loan balance transfer calculator. We will also explore some other benefits of a home loan balance transfer and how it can be used to avail a top-up loan.
Home Loan Balance Transfer Calculator
1. Comparison of Interest Rates
The first and foremost benefit of using a home loan balance transfer calculator is the ease of comparing the interest rates of different lenders. With this tool, one can easily input the current outstanding balance, tenure, and interest rate of the home loan and compare it with the rates offered by other lenders. This helps in determining the potential savings that can be achieved in terms of lower interest rates.
2. EMI Reduction
By transferring the outstanding balance of a home loan to another lender with a lower interest rate, one can significantly reduce the EMI amount. This not only reduces the monthly financial burden but also frees up funds for other expenses. The home loan balance transfer calculator allows borrowers to calculate their new EMI amount based on the lower interest rate offered by the new lender.
3. Savings on Interest
Apart from EMI reduction, one of the major benefits of a home loan balance transfer is the savings on interest. With a lower interest rate, the total interest paid over the entire tenure of the home loan also reduces. The home loan balance transfer calculator helps in calculating the total interest savings over the entire tenure of the home loan.
4. Top-Up Loan
Another major benefit of a home loan balance transfer is the opportunity to avail a top-up loan. A top-up loan is an additional loan amount that can be availed over and above the outstanding balance of the home loan. This loan can be used for any purpose such as home renovation, wedding expenses, or any other personal needs.
The home loan balance transfer calculator also helps in calculating the potential top-up loan amount that can be availed based on the new interest rate offered by the new lender. This tool provides borrowers with the flexibility to calculate the total loan amount they need and decide the tenure and interest rate accordingly.
5. Reduced Tenure
The savings obtained from a lower interest rate can also be used to reduce the tenure of the home loan. A shorter tenure means that the borrower will pay off the loan faster and save more money on the interest paid over the entire tenure. The home loan balance transfer calculator helps in calculating the potential savings obtained from a higher EMI and a reduced tenure.
6. No Hidden Costs
A home loan balance transfer calculator also helps in determining the total cost of the loan transfer. This includes the processing fees, prepayment charges, and other associated costs. The borrower can calculate the net savings after deducting these costs from the total savings obtained from the lower interest rate.
7. Enhances Credit Score
A home loan balance transfer can also enhance the borrower’s credit score. Timely payment of the home loan and the top-up loan can increase the credit score and improve the borrower’s creditworthiness. This, in turn, can help in availing other loans such as a car loan or a personal loan at a lower interest rate.
8. Better Services
Transferring a home loan to another lender with better services such as online account management, doorstep services, or other value-added services can also be beneficial to the borrower. The home loan balance transfer calculator can help in comparing the services offered by different lenders and choosing the one that offers the best services.
Conclusion
In conclusion, a home loan balance transfer calculator is a powerful tool that can help borrowers in maximizing their savings and availing additional benefits such as a top-up loan and enhanced credit score. If you are currently paying a higher EMI on your home loan, it is advisable to use a balance transfer calculator and explore the potential savings and benefits that can be achieved through a home loan balance transfer.
