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.
Year | Principal | Interest | Balance |
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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.
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.
The Home Loan Balance Transfer Calculator computes the exact figure of the EMI payments for your current lender. All you have to do is enter the details, like the existing balance home loan amount and the rate of interest.
You can add a fresh set of details pertaining to the new lender into the tool. Once the EMI amount has been obtained, you can calculate the difference and then take a call on which loan option to choose.
Yes, as you will need to calculate the new EMIs payable. Once done, you can know your savings by deducting the EMI amount offered by the new lender from the EMI you are currently paying with your existing lender.