Home Loan Balance Transfer -Is it Worth it

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Home Loan Balance Transfer Is it Worth it?
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A balance transfer of home loan is done when the
total outstanding principal amount of the the
home loan is transferred to a new bank hence the
rest of the EMIs will be paid to the new bank.
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• There are many other benefits of a balance
  transfer.
• LOW EMI
• A balance transfer is done to minimize the burden
  of a high EMI amount.
• A balance transfer can save minimum 5 of the
  EMI.
• Saving 5 every month for coming 10 or more years
  will be a great saving

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• LOW-INTEREST RATE
•  The maximum number of balance transfer in our
  country is done to gain the benefit from the
  interest rate
• But the present home loan interest rate starts
  from 8.3 which is much lower
• A balance transfer, one can easily save a lot in
  total interest payment.

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• BETTER TOP-UP
•  A top-up loan is more or less like a personal
  loan which can be used for any purpose.
• But the difference comes in the rates and
  convenience.
• A top-up loan is always cheaper than a personal
  loan.

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• ENHANCES CREDIT SCORE
•  A balance transfer is used as a tool to enhance
  credit score.
• With a balance transfer, a person has to pre-pay
  the older loan and starts a new credit account.

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When It Makes Sense To Go For A Balance
Transfer? But the worthiness of balance transfer
depends on a few factors. If a person wants to
gain maximum benefit from the balance transfer he
must take care of the given points.
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THE TENURE LEFT The home loan balance transfer
works better if the transfer is done in the early
period. It may not be worthy to take the hassles
of prepayment if more than three fourth of the
total tenure has already been serviced.
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THE OUTSTANDING PRINCIPAL AMOUNT  One must check
the outstanding principal amount before applying
for a balance transfer. With a high outstanding
amount, the profit is going to be more.
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THE CHARGES Recently RBI has instructed lenders
not to impose any penalty if the loan is at a
floating interest rate. But a borrower still has
to pay a balance transfer charges to the new
lender.
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CALCULATE HOW MUCH ONE CAN SAVE The total
savings which can be made with the balance
transfer should be calculated well in advance.
One must know the exact amount which he can save.
If he feels that the time and effort which has
been invested in making the balance transfer is
worth.
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SEARCH FOR THE BEST LENDER  If one wants to earn
maximum profit, one must find the lender who is
providing best interest rate and with best terms
and conditions. Along with interest rate, one
must check processing fee and other charges of
the lender.
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A balance transfer is worthy only if it gives you
an ample profit. One must do a balance transfer
at the right time to get the best of it.