• About Us
  • Privacy & Policy
  • Terms and Conditions
  • Contact
Away Some Article & Blog
  • Home
  • Mobile App Development
  • WordPress
  • Yoga
  • General
  • Lifestyle
  • Health
  • SEO
  • Write For Us
  • Contact us
  • More
    • Business
    • Web and Mobile Development
    • Digital Marketing
    • Career
    • Earn Money Online
    • Education
    • Finance
    • Hair Care Tips
    • Internet
    • Jobs
No Result
View All Result
  • Home
  • Mobile App Development
  • WordPress
  • Yoga
  • General
  • Lifestyle
  • Health
  • SEO
  • Write For Us
  • Contact us
  • More
    • Business
    • Web and Mobile Development
    • Digital Marketing
    • Career
    • Earn Money Online
    • Education
    • Finance
    • Hair Care Tips
    • Internet
    • Jobs
No Result
View All Result
Away Some Article & Blog
No Result
View All Result
Home Loan

Important Things to Remember While Transferring Your Home Loan

Away Some Article by Away Some Article
June 24, 2020
in Finance, Loan
0
Important Things to Remember While Transferring Your Home Loan

Important Things to Remember While Transferring Your Home Loan

Share on FacebookShare on Twitter

Home loan transfer enables borrowers, who are already repaying a housing loan, to grab hold of a better deal on their credit with a new financial institution. Furthermore, by opting for a balance transfer, an individual can ensure cost-effectiveness in terms of EMI payments and also better service.

ADVERTISEMENT

What is a Housing Loan Balance Transfer?

It is the process of transferring the remaining balance – principal proportion – of a home loan from the existing lender to a new financial institution. Under this process of a home loan transfer, the latter repays the remaining principal amount of a housing loan to the former lender and assumes the role of the new lender.

Thereby, assuming you are the borrower in question, you pay EMIs for the transferred loan to such new lender at better terms. Typically, an individual only refinances their loan when another financial institution is offering lower interest rates for home loans.

Factors to Consider Before Opting for a Home Loan Balance Transfer

You must take into consideration a few factors that would aid you to maximise the benefits from a home loan transfer. These are –

  • Timing of refinancing

The timing of refinancing a home loan is quintessential to maximise the profitability of balance transfer.

That is because, in the case of home loans, the amortisation schedule is set such that the principal proportion of EMIs is significantly lower than the interesting part. It gradually evens out, and then in the last lap of a repayment tenor, the principal portion is higher. Therefore, you must time your balance transfer when the interest outgo is maximum or at least higher than the principal part to benefit from it properly.

Ergo, ideally, you ought to carry out a balance transfer in the early or mid-stages of a loan tenor. This is how a home loan balance transfer helps you save money.

Conversely, opting for a balance transfer in the last 5 years of repayment tenor would reap no monetary benefits. Furthermore, you can use a balance transfer calculator to reckon the total profitability from carrying out a home loan refinancing.

  • Interest rate and other charges

Another crucial factor to consider when carrying out a home loan transfer is by how much the new interest rate is lower to the existing rate. That is because only a marginal difference between two rates would hardly result in any saving owing to the other costs involved in a balance transfer. These costs include foreclosure charges as well as processing charge for availing a new loan.

Financial experts suggest that such a new interest rate must be at least 0.5% less than its existing counterpart to yield any financial benefit. As a side note, you should duly consider the other charges to exact your profit from such transfer. It is one of the most important things to keep track of when opting for a home loan balance transfer.

  • Beware of teaser schemes

It is also crucial to remain aware of teaser schemes offered by certain financial institutions. These schemes lure customers by displaying a lower interest rate only to increase them after a specific period. Therefore, experts suggest steering clear of such teaser schemes and opting for home loans from reputed financial institutions.

On the other hand, some financial institutions offer added benefits like a top-up loan upon refinancing a loan.

Lastly, another critical thing to remember when opting for a home loan balance transfer is obtaining a NOC from your existing lender. This will help to avoid any hassles later.

Tags: BussinessGeneralhome loan balance transferhome loan transferhousing loanLoan
Previous Post

Best Shockwave Therapy Equipment Used In Treatment Procedure

Next Post

Complete Florida Travel Experiences and Travel Tips

Away Some Article

Away Some Article

Away Some Article is an experienced writer who has written a plethora of articles, based on technology. Her extensive knowledge about Technology is evident from the articles, as written in this blog. you need submit a guest post?, then contact us

Next Post
Complete Florida Travel Experiences and Travel Tips

Complete Florida Travel Experiences and Travel Tips

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe To Our Newsletter

  • Trending
  • Comments
  • Latest

Coin master free spin and coin links

February 26, 2021
Latest And Most Exciting Trends In Mobile App Design In 2020

Latest And Most Exciting Trends In Mobile App Design In 2020

August 8, 2020
austin-distel-VwsuhJ9uee4-unsplash

6 Things You Must Know Before Starting an Online Business

August 23, 2020
How to Estimate the Time, Cost, and Deliverables of an ML App Project

How to Estimate the Time, Cost, and Deliverables of an ML App Project

August 1, 2020
Getting Amazing Results on your Carpet Without a Steam Cleaner

Getting Amazing Results on your Carpet Without a Steam Cleaner

2
How to calculate returns on FDs?

How to calculate returns on FDs?

2
Dissertation Writing Help

Most Common Problems Students Face With Writing Dissertations

2
hair-growth-long-hair-stock-today-180622-main-art_698aa92eb44df10ec28944776bdbc015.fit-760w

Learn How to Grow Hair Fast

2
Thinking of PRINCE2 Project training differently

Thinking of PRINCE2 Project training differently

February 25, 2021
 SEO Best Practices for Using GIFs

 SEO Best Practices for Using GIFs

February 25, 2021
KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

February 24, 2021
Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

February 24, 2021

Recent Blog

Thinking of PRINCE2 Project training differently

Thinking of PRINCE2 Project training differently

February 25, 2021
 SEO Best Practices for Using GIFs

 SEO Best Practices for Using GIFs

February 25, 2021
KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

February 24, 2021
Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

February 24, 2021
ADVERTISEMENT
Away Some Article & Blog

Submit A Guest post | Away Some Article & Blog

Follow Us

Browse by Category

  • Accounting
  • Architecture
  • Automobile
  • Automotive
  • Beauty
  • Best Exercises
  • Biography
  • Bitcoin
  • Blockchain
  • Business
  • Career
  • CBD
  • Computer
  • Content Management System
  • Corona virus
  • COVID-19
  • Dentist
  • Designing
  • Digital Marketing
  • Digital Marketing Trends 2020
  • Drupal 8
  • Drupal 9
  • Earn Money Online
  • eCommerce Businesses
  • Education
  • Electronics
  • Entertainment
  • Face
  • Facebook
  • Fashion
  • Finance
  • FinTech apps
  • Fitness
  • Food
  • Furniture
  • Gadgets
  • Games
  • Gardening
  • General
  • Gift
  • Google Flutter
  • Graphic Design Services
  • Graphics Cards
  • Guest Post
  • Guest Posting
  • Gym
  • Hair Care Tips
  • Health
  • Holiday Accommodation
  • Home improvement
  • Household
  • Interior Design
  • Internet
  • Jewelry
  • JioMart News
  • Jobs
  • Kitchen
  • Laravel Development
  • Law
  • Legal
  • Lifestyle
  • Loan
  • Magento 2
  • Magento 2 App Development
  • Marketing
  • Medical
  • Medical Store
  • Men's Health
  • Mental Health
  • Mobile & Web Development
  • Mobile App Development
  • Mobile Recharge
  • Movies
  • Moving and relocation
  • MVP Development
  • News
  • Office Furniture
  • Online Business
  • Other
  • Park
  • Party
  • Photography
  • Psychologist
  • RAKHI
  • Real Estate
  • Recruitment Services
  • Restaurant
  • Restoration Company
  • Rose
  • SEO
  • Skin
  • Smartphones
  • Social Media
  • Social Media Marketing
  • Software
  • Sport
  • Teaching
  • Technology
  • Telecom
  • Tiles
  • Tips
  • Travel
  • Traveling
  • Uncategorized
  • Use Integrity Scanning
  • Villa
  • VoIP
  • Web and Mobile Development
  • Web Designing
  • Web Development Services
  • Website development
  • Women
  • Wordpress
  • Yoga
  • Yoga Therapy

Recent Article

Thinking of PRINCE2 Project training differently

Thinking of PRINCE2 Project training differently

February 25, 2021
 SEO Best Practices for Using GIFs

 SEO Best Practices for Using GIFs

February 25, 2021
KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

KeepABit review 2021 | Complete Pros and Cons, Security, and Reliability of This Exchanging Platform (www.keepabit.com)

February 24, 2021
Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

Golden-Gate Review 2021| Top Forex Brokers | Free Forex Education (www.golden-gate.co.uk)

February 24, 2021

Carter-Williams Review 2021- Is this broker worth a shot? (www.carter-williams.com)

February 24, 2021
Top 8 Tips Before You Go For Mobile App Development

Top 8 Tips Before You Go For Mobile App Development

February 24, 2021

Purchase the best steroids in Canada with steroids Canada

February 23, 2021
  • About Us
  • Privacy & Policy
  • Terms and Conditions
  • Contact

Copyright © 2020 Away Some Article. All rights reserved.

No Result
View All Result
  • Home
  • Magento 2 App Development
  • WordPress
  • SEO
  • Yoga
  • Lifestyle
  • Health
  • Write For Us
  • Contact us

Copyright © 2020 Away Some Article. All rights reserved.