Home Loan Balance Transfer Calculator

A home loan balance transfer EMI calculator is an immensely useful online tool that helps one save a lot of money in the long run. When transferring a home loan to another lender, it helps ascertain: 

• Equate monthly instalments (EMIs)

• Monthly interest rate

• Reduced interest based on the revised principal amount, interest rates, or tenure

Nowadays, you can transfer the remainder of your loan amount to a different lender, offering you more competitive interest rates. The issuer bank receives all its dues, and you continue to repay the loan to the new lender at a revised and lower interest rate!

Read on to learn how to use the home loan refinance calculator to find the best interest rates for your existing home loan.

Once you have understood the variables for the Home Loan Balance Transfer EMI Calculator, you can quickly calculate your monthly liabilities. Here is a quick guide. 

• Step 1: Enter the outstanding home loan balance amount.

• Step 2: Enter the interest rate offered by the other lender and the pending home loan tenure.

• Step 3: Once you enter the variables into the tool, it will calculate your Home Loan Balance Transfer EMI amount for you instantly.

To arrive at accurate results, make sure you take all of the other costs and dues associated with your loan. 

Home Loan Balance Transfer EMI Calculation Examples

Consider that the outstanding amount that you have to pay on your existing home loan is ₹80,00,000 and the EMIs amount to ₹80,000. If the interest offered by the new lender is 7.75% p.a., and the tenure is 240 months, the new EMI would be ₹65,676. 

Here is the calculation:

P X R X (1+R)^N / [(1+R)^N-1]

Here:

• P is the principal amount

• R is the monthly rate of interest

• N is the loan tenure (in months)

As the annual rate of interest is 7.75%, R would be- 

Annual rate/12/100

7.75/12/100= 0.006%

Now,  

P X R X (1+R)^N / [(1+R)^N-1] 

80,00,000 X 0.006 X (1+0.0006)^240/[(1+0.0006)^240-1]= ₹65,676

Now, if you go with the second option, your EMI will reduce by ₹14,324, leading to significant savings. A home loan balance transfer calculator allows you to complete this lengthy process quickly and make an informed decision.

Benefits of using Home Loan Balance Transfer EMI Calculator

A home refinance calculator is useful for you if you plan to switch lenders of your current home loan. 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 EMI amount you will have to pay to the new lender. It helps you determine if the switch in question would be worth it overall. 

• You can use this information to adjust your finances. Based on that, you can decide whether or not you can manage the repayment to the new lender without running the risk of defaulting.

• You can also negotiate the rate of interest or the tenure of the loan with your new lender if you want manageable EMIs.

A home loan is a long-term commitment and generally high in value. Acquiring newer terms means that you will have to consistently repay at those terms over the course of several years. 

Moreover, it is also equally important to know the tax rebate you will enjoy after transferring your home loan balance to a new lender. With accurate information provided by the calculator, you can assess these tax benefits better. 

Factors affecting Home Loan Balance Transfer EMI

The following are the factors that affect the results of the Home Loan Balance Transfer EMI calculator:

• Home Loan Principal Amount

The home loan amount is the principal sum that you borrow from a lender. For example: Suppose you have availed a home loan of ₹40 Lakhs, then that sum is the principal amount of the loan.

• Rate of Interest

The rate of interest is the sum you pay the lender for borrowing the loan amount and is expressed in percentage terms. The rate of interest is included in your monthly EMI payments during the course of 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 is calculated in months. 

It is advisable that you confirm the above-mentioned variables with your current as well as prospective lender to obtain an almost exact EMI amount. 

Once the EMI amounts have been computed, you will easily calculate potential savings that you can make after switching the lender. To make the right decision, use the Home Loan Balance Transfer facility that is available on Bajaj Markets and with its various lending partners.