Home Loans are one of the most prevalent methods to get the funds you need to buy the house of your choice. You can apply for the loan online or by visiting the branch, whichever works best for you. But if you already possess a Home Loan and are unhappy with your lender, you can switch to a different lender who gives you a lower interest rate.
Here’s a detailed breakdown of everything you need to consider before switching over your loan. Whether you’re wondering how Home Loan balance transfers and top-ups work, or you want to learn how to use a calculator for Home Loan calculations. We’ve got you covered with all the information here.
What Does Home Loan Balance Transfer Refer To?
A House Loan balance transfer allows you to move your loan to a different lender. It is a disguised gift for those who are struggling to make house loan EMIs because of burdensome monthly installments. It is offered at a low-interest rate with manageable monthly payments, which significantly eases your financial position and allows you to spend time with your family and friends without worry at all.
Applying for a Balance Transfer on Your Home Loan
Applying for a debt shift on your house loan is quick and easy. Just stick to these simple instructions:
- First, determine whether or not you qualify for a debt shift on your loan.
- Complete the registration form, including information about yourself, your finances, your job, and any land you already own.
- Submit the completed form and appropriate documentation detailing your name, age, location, and property.
- View your home transfer loan offer.
- You can settle your security deposit online.
- Add/Upload your files.
Home Loan Transfer Benefits and Features
The procedure for transferring the loan amount is quick and straightforward. It is made to help you easily switch your credit balance over from your present provider. Let’s take a look at the benefits of this transferring process:
Easy Approval – It will be an easy process if you choose the right lending institute
Lower Interest Rate – Knock on the right door to enjoy stress-free repayment of loans
Ownership Structure – Pick Your Investment Strategy
Direct Settlement – Make future payments to your bank using a home loan balance transfer.
Home Loan Balance Transfer and Top Up Loan – Fill your other financial needs easily.
Using a home loan balance transfer calculator, you can determine the current EMIs, the savings from refinancing, the interest rate, the total amount, and more. Let us discuss its functioning and benefits for better clarity.
Functioning of a House Loan Calculator
Sarah is looking to buy a new house and has approached her bank to apply for a house loan. After evaluating her property, she gets approval for a loan amounting to Rs 60,00,000 with an interest rate of 7.5% p.a. Sarah plans to repay the amount over a period of 25 years.
To calculate her monthly EMI amount, Sarah uses a house loan calculator that uses the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
The following numbers have been input into the calculator:
- P (principal value): Rs 60,00,000
- R (rate of interest): 7.5% p.a.
- N (tenure): 300 months (25 years x 12 months)
Plugging these values into the formula, Sarah’s Easy Monthly Installment (EMI) is calculated as:
EMI = [60,00,000 x 7.5% x (1+7.5%)^300]/[(1+7.5%)^300-1] = Rs. 46,951
Therefore, Sarah’s monthly EMI payment would be Rs. 46,951 for a period of 25 years. She can also see the grand sum, which is Rs 1,40,85,474 in this instance.
Using a Home Loan calculator helps Sarah plan her finances and budget better.
What Are the Benefits of a House Loan Calculator?
Given below are the major benefits of a house loan calculator.
- A house loan EMI calculator can help borrowers estimate their monthly payments and overall loan costs.
- The calculator can be adjusted to determine a manageable monthly payment plan depending on the user’s circumstances.
- This convenient online calculator makes calculating EMIs effortless.
- Financial budgeting is improved with the help of EMI calculators.
Home loans are a popular and effective method of financing your dream home. However, if you find yourself struggling with heavy EMIs, you can consider a home loan balance transfer to a lender offering lower interest rates. The process is quick and easy, and it comes with benefits like easy approval, lower interest rates, ownership structure options, and direct settlement.
Also Read: A Guide To Finding The Best Housing Loan In India
To determine your EMIs and better plan your finances, you can use a home loan calculator, a convenient and effortless tool to estimate your monthly payments and overall loan costs.