Individuals can opt to refinance their home loans if they are finding it challenging to pay the EMIs. Nonetheless, the most crucial reason is the interest rate. Thus, borrowers can look for several other financial institutions that offer lower interest rates.
Home loan interest rates are subject to change as per lenders and the RBI. Thus, individuals can avail a home loan balance transfer to reduce their interest rates.
Here are some other aspects to look for -
• Check the lender’s credibility
Numerous financial organisations provide home loans at attractive interest rates. However, the interest rate is not the only important parameter to select the preferable lender; individuals must also check the credibility and service reviews of the lenders. Thus, thorough and extensive research is necessary before refinancing the home loan.
• Right time of home loan transfer
It is advisable to transfer home loans in the early period of the loan tenor. During this period, home loan EMIs majorly include the interest component of the loan amount. Thus, refinancing home loans during the initial period of the entire tenor helps borrowers to save a substantial amount of interest.
• Calculate loan transfer fees
Financial institutions levy various charges such as prepayment fees, processing costs, application charges, foreclosure fees, etc. while transferring home loans. Hence, borrowers must calculate all these expenses and tally whether it worth refinancing or not.
Borrowers can use a balance transfer calculator to assess the entire loan transfer expenses. This helps them to make the right decision by estimating and comparing the amount they can save by availing this facility.
Thus, borrowers must consider these above-said factors while opting for a home loan balance transfer. This helps individuals to save a significant amount and manage their finance efficiently.
