Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
17 JUNE, 2022
Interest rates keep fluctuating as per market conditions. So, it is quite common for borrowers to find that the current rates have changed as compared to the deal they were offered. Now, a borrower who has taken a home loan a few years ago might find another lender currently offering a lower interest rate. In such cases, they can always opt to transfer their home loan to the new financial institution to repay their remaining home loan EMIs with a lower home loan interest rate. This is called as a home loan balance transfer.
Now, while this transfer can potentially end up saving a significant amount for a borrower, it is still important to be sure that this move is a good one. This is where a home loan balance transfer calculator comes in. This calculator is an online tool that can be accessed by anyone and used for free!
Those who are not very familiar with a home loan balance transfer calculator, take a look at why this is such an essential tool:
1. A home loan balance transfer calculator displays the potential savings one can make
The primary goal of any borrower would be to save money on the total cost of their home loan. To make sure that a borrower ends up saving money, they need to make use of a home loan balance transfer calculator. This calculator will display the potential savings that the borrower can end up with if they transfer their home loan to the new lender.
2. This calculator helps in understanding how the new interest rate will affect home loan EMIs
Most borrowers who transfer their home loans to new lenders do so because of the lower home loan interest rates that are offered to them. While a slight change in the rate might not seem like much, it can actually bring down the cost of the home loan, resulting in significant savings. A lower home loan balance transfer interest rate would help in bringing down the EMI payments, making it easier for the borrower to pay off the monthly instalments.
3. Using this calculator is much easier than manually calculating the revised EMI payments
Before a home loan refinance calculator was available, the only way that borrowers could find out about the revised monthly instalments of their home loans was through manual calculations. Now, this could be quite a time-consuming process, not to mention being an error-prone one too. Instead, it is much easier to simply use a home loan balance transfer calculator as this tool provides accurate results within a matter of seconds. All that the borrowers need to do is provide details of the outstanding home loan amount, remaining repayment tenure, and the revised interest rate offered by the new lender.
Head over to the Kotak website and make use of a home loan balance transfer calculator to make an informed decision on refinancing your home loan!
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