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07 JULY, 2022
With home loan rates on the rise, now may be a great time to consider transferring your home loan to a new lender that is offering a more competitive interest rate. Doing so can help you save money on your monthly payments and reduce your overall borrowing costs.
But before you make this move, it is important to compare your options and calculate the potential savings. A home loan balance transfer calculator can be a helpful tool in this process. This tool will help you to compare different home loan deals and find one that's right for you. Here’s how.
Steps to use a home loan balance transfer calculator to get the best interest rates
Here's a step-by-step guide on how to use a home loan transfer calculator:
1. Enter your current home loan details. This includes the outstanding loan amount, interest rate, and remaining term.
2. Enter the details of the new home loan you are considering. This includes the interest rate, term, and any fees or charges.
3. The calculator will then show your total estimated savings if you transfer your home loan from the current lender to the new lender along with your estimated new Equated Monthly Instalment (EMI). This way you can compare how much you will be saving if you transfer the home loan to a new lender.
Benefits of using a home loan transfer calculator
1. Save money on interest payments
If you've been paying attention to your home loan statement, you might have noticed that the interest payments are gradually increasing. This is because most home loans are based on a variable interest rate, which means that the amount of interest you pay can fluctuate depending on market conditions. A home loan balance transfer calculator can help you see how much exactly you could save by transferring your housing loan to a different lender. By opting for a balance transfer, you could potentially get a lower interest rate and save money on your monthly payments.
2. Compare different lenders
There are many different lenders offering home loans and it can be difficult to compare them all manually. By using a balance transfer calculator, you can easily see which lender is offering the best terms.
3. Calculate monthly payments
A home loan refinance calculator can help you calculate your monthly payments based on the interest rate and term of the new loan. This can help you budget for your new loan and keep your monthly payments affordable.
4. Consolidate your debts
If you have multiple debts, such as a home loan, a personal loan, and a credit card debt, you may be able to save money by consolidating all your debts into one loan with a lower interest rate. This makes it easy for you to pay off your debts.
5. Save on fees and charges
Some lenders may charge higher fees than others for a home loan balance transfer. A home loan transfer calculator can help you compare the fees and charges associated with different loans. This way, you can conduct a cost-benefit analysis and see if it will be truly beneficial to opt for the balance transfer.
If you want to know how much you can save by transferring your home loan to a new lender, use a home loan balance transfer calculator. This easy-to-use calculator will help you crunch the numbers and calculate exactly how much you will save on your housing loan transfer. This is a great way to determine whether a balance transfer is right for you amidst the rate hikes.
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