A home loan balance transfer EMI calculator is an immensely useful online tool which helps one save a lot of money in the long run as they can ascertain the extent to which the interest payable has reduced as a result of transferring their remaining loan amount to a different lender.
Nowadays, one can transfer their entire home loan principal that they have not paid yet to some other lender who gives you a much better and competitive interest rate. The way it works is that the lender that they first borrowed from will receive all its dues as the borrower continues to repay the loan to the new lender at a revised and lower interest rate!
Once the borrower has ascertained the variables which need to go into the Home Loan Balance Transfer EMI Calculator, he or she will be able to swiftly calculate their monthly liabilities from below mentioned steps:
Note, in order to arrive at an accurate result, make sure you take all of the costs associated with using the facility into account.
The components of one’s home loan EMI payments are as follows:
Home Loan Principal Amount: The Home Loan amount is the principal sum that they have borrowed from a lender. For example: Suppose they have taken a Home Loan of ₹40 Lakhs, that 40 Lakhs will be considered to be the borrower’s Home Loan Principal Amount.
Rate of Interest: The rate of interest is a sum that is paid to the lender for borrowing the loan amount and is expressed in percentage terms. The same is usually calculated after the final Home Loan amount has been cleared by the lender. The rate of interest then becomes a portion of the monthly EMI payments a borrower has to make towards their Home Loan which is paid off during the course of the Home Loan repayment tenure.
Home Loan Repayment Tenure: The Home Loan repayment tenure is defined as the period in which the borrower has agreed to pay off their debts. The same is expressed in years, but the total number of EMIs are calculated in months. It is advisable that the borrower confirm this particular variable with their current as well as their prospective lender in order to obtain an almost exact estimate of the EMI amounts that they are either paying or will pay in order to compute the overall financial gain.
Once the EMI amounts have been computed, the borrower will be easily able to compute the potential savings that they can make after making use of the Home Loan Balance Transfer facility that is available on Finserv MARKETS and with its various lending partners.
A Home Loan Balance Transfer EMI calculator is useful for those people who are thinking about switching the lenders of their current Home Loan for various reasons. Some of the benefits of a Home Loan Balance Transfer EMI calculator are as follows:
Primarily, it helps you acquire a near-to-exact estimate of the amount they will have to pay as Home Loan EMI to the new lender, which should help them determine if the switch in question would be worth it in overall terms. They can use this information to adjust their finances and then decide whether or not you can manage the repayment to the new lender without running the risk of defaulting.
A Home Loan is a long-term commitment and generally high in value. Given the fact that acquiring a Home Loan means that the borrower will have to consistently repay the same over the course of several years and the EMI amounts can go up to several thousands, and even in some cases, Lakhs, a reduction of sorts in the same is always a welcome event. It is also equally important to know the extent to which a borrower will enjoy a rebate after transferring their Home Loan balance to a new lender.
It is beneficial for understanding which sort of EMI amount would be financially manageable for the borrower. However, the loan repayment tenure must be confirmed and verified from both the lenders. The applicant can also negotiate the rate of interest or the tenure of the loan with your new lender if you want an EMI that is manageable for you.
A Home Loan Balance Transfer or Refinance calculator, which is an online tool that helps the borrower compute the difference between the EMI amounts one will have to pay to two separate lenders who are providing Home Loans at two different rates of interest.
Once the approximate has been obtained through such a tool, they can calculate the difference in amount that the borrower will pay to both the lenders during the course of the loan repayment tenure.
All they will have to do is enter the details like the existing balance home loan amount and the rate rate of interest to allow the Home Loan Balance Transfer Calculator to compute the exact figure of the EMI payments which are being made to their current lender.
The borrower can then add a fresh set of details pertaining to the new lender into the Home Loan Balance Transfer tool, such as the balance amount, the interest rate that they are charging and the remainder of the Home Loan repayment tenure.
Once the EMI amount which should be the final result of adding the previously mentioned details to the Home Loan Balance Transfer EMI calculator has been obtained, the borrower can calculate the difference and then take a call on the basis of that.