Right Start Go
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
Right Start Go
No Result
View All Result
Home Finance Loans

Top 5 Things To Consider Before Transferring Home Loan

Acker Palma by Acker Palma
March 16, 2021
in Loans
0 0
0
Top 5 Things To Consider Before Transferring Home Loan
0
SHARES
41
VIEWS
Share on FacebookShare on Twitter
0
SHARES
ShareTweet

Home loans can continue for decades, even spanning half of your earning life! This means you could contribute a significant portion of your earnings towards your home loan EMI every year. Interest, principal amount and loan tenure are key components of a home loan EMI. In the beginning of the loan tenure, interest payments makes a larger component of repayment than the principal does. Changes in interest rate or the tenure of your loan can bring a huge impact on the loan EMI.

Therefore, borrowers often use the facility of balance transfer, which enables you to transfer your home loan to another lender who is offering a lower interest rate and better terms.

How does home loan balance transfer work?

When you transfer the loan, the new lender pays the balance amount of the loan to your old lender, and you start paying the EMI to the new lender as per the interest rates offered.

Though it sounds easy and profitable, you should keep a few things in mind. Here are 5 things that you should consider before transferring your home loan.

Transfer at the beginning of the loan

In the initial years, the interest payment on your EMI is higher than the principal component of the loan. So, if you wish to transfer your loan, it is suggested doing so when at least 5 years of your loan repayment tenure is left. When you transfer your loan, you might have to bear a few charges like loan processing fees, transfer fees, etc. So, transferring your loan when almost the entire tenure has already passed might not be economically feasible for you. On the other hand, when you transfer your loan early during the tenure, you might be able to reduce the cost of your borrowing through the balance transfer loan.

Check the credibility of the lender

Before you choose your lender, ensure that there’s no sudden dip in the approval amount by the lender post your home loan eligibility calculation. Keep in mind that credible lenders give clarity at every stage. To further give you an idea, you can also read online reviews and read the documents carefully before making the commitment.

Know about the other charges

The new lender could levy various charges on transferring the loan. It is important to know about these when you plan to transfer your loan as those charges could increase of the overall cost of borrowing. Along with the fees like stamp paper fees, documentation charges, processing fees, you should also enquire about any hidden charges and fees.

Ensure timely payments – Pay EMIs on time

You might face difficulty in transferring your loan if you default on EMI payments. If your credit score falls after you have taken the home loan, the new lender might reject your loan transfer request. So, if you plan to transfer your loan, it is important to pay all your EMIs on time, improve your credit score and then apply for a loan transfer.

Negotiate the loan processing fee

Your decision about transferring your loan must be profitable for you. Therefore, you should compare your options and look for a competitive home loan balance transfer interest rate. Once you zero down on a lender, you can negotiate for a low loan-processing fee. Considering your credit score, they might even waive off the processing fee if you have made timely EMI payments in the past.

You can opt for transferring your loan to a new lender if you get favorable interest rates and terms. But for that, you must have a good credit score and track record. Before you jump on the decision to transfer a loan, consider the above factors and then make an informed decision.

Previous Post

6 Benefits of Online Executive Education

Next Post

Why you should not miss shopping on No Cost EMIs

Acker Palma

Acker Palma

Next Post
Why you should not miss shopping on No Cost EMIs

Why you should not miss shopping on No Cost EMIs

  • Trending
  • Comments
  • Latest
Creating the Best and Reliable Sheep Shed Design 

Creating the Best and Reliable Sheep Shed Design 

February 12, 2018
Five Fine Features of Sliding Gates for Houses

Five Fine Features of Sliding Gates for Houses

August 29, 2018
Best Information on Kids Dance Class

Best Information on Kids Dance Class

February 12, 2018
How to Get into the Funeral Business

How to Get into the Funeral Business

June 17, 2018
Bike Insurance Policy: Are Fiber Parts of Your Bike Covered?

Bike Insurance Policy: Are Fiber Parts of Your Bike Covered?

0

Important Tips When Renting A Vehicle

0

What Personal Vehicle Leasing Is

0

The Intricacies Of Invoice Finance

0
Bike Insurance Policy: Are Fiber Parts of Your Bike Covered?

Bike Insurance Policy: Are Fiber Parts of Your Bike Covered?

May 10, 2022
Digital Marketing Strategies For Small Businesses

Digital Marketing Strategies For Small Businesses

May 3, 2022
Understand How A Hybrid Fund Differs From An Equity Fund

Understand How A Hybrid Fund Differs From An Equity Fund

April 14, 2022
How DeFi Exchanges Like Dan Schatt’s Earnity are Helpful and Why You Should Use Them

How DeFi Exchanges Like Dan Schatt’s Earnity are Helpful and Why You Should Use Them

April 7, 2022

Recent Posts

  • Bike Insurance Policy: Are Fiber Parts of Your Bike Covered? May 10, 2022
  • Digital Marketing Strategies For Small Businesses May 3, 2022
  • Understand How A Hybrid Fund Differs From An Equity Fund April 14, 2022
  • How DeFi Exchanges Like Dan Schatt’s Earnity are Helpful and Why You Should Use Them April 7, 2022
  • The DeFi Vision of Earnity Co-Founder Domenic Carosa April 7, 2022
  • Bike Insurance: Compulsory Deductible and Voluntary Deductible March 26, 2022

2022

  • – May (2)
    • Bike Insurance Policy: Are Fiber Parts of Your Bike Covered?
    • Digital Marketing Strategies For Small Businesses
  • + April (3)
  • + March (2)
  • + February (5)
  • + January (6)

2021

  • + December (3)
  • + November (4)
  • + October (12)
  • + September (10)
  • + August (5)
  • + July (4)
  • + June (5)
  • + May (4)
  • + April (6)
  • + March (7)
  • + February (9)

2020

  • + December (1)
  • + April (1)
  • + March (2)
  • + February (1)
  • + January (1)

2019

  • + December (2)
  • + November (2)
  • + October (1)
  • + September (4)
  • + August (4)
  • + July (2)
  • + June (6)
  • + May (4)
  • + April (4)
  • + March (10)
  • + February (7)
  • + January (11)

2018

  • + December (15)
  • + November (26)
  • + October (20)
  • + September (16)
  • + August (29)
  • + July (31)
  • + June (24)
  • + May (19)
  • + April (13)
  • + March (16)
  • + February (24)
  • + January (37)

2017

  • + December (2)
  • + October (1)
  • + September (6)
  • + August (8)
  • + July (7)
  • + June (7)
  • + May (3)
  • + April (3)
  • + March (2)
  • + February (4)
  • + January (3)

2016

  • + December (5)
  • + November (3)
  • + October (1)
  • + September (8)
  • + August (2)
  • + July (5)
  • + June (4)
  • + May (6)
  • + April (1)
  • Write To Us

© 2020 Right Start Go- All Rights Reserved.

No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo

© 2020 Right Start Go- All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In