Is This Relevant to Balance Transfer your Home Loan?

Transferring your home loan means replacing your existing home loan with a new home loan, with different terms and conditions. If your existing home loan rate of interest is high, then you can opt for a Home Loan balance transfer.

 Besides interest rates, there may be several other reasons to transfer your home loan as the desire to increase your loan amount or tenure, unsatisfactory service from existing lender, etc.  Following are some of the important things you need to consider before you opt for the balance transfer of your home loan: Choose to transfer your home loan only if the new loan is offered at a lower rate of interest as it will help in saving on cost in the form of reduced interest payment. Transferring your home loan towards the end of loan tenure is not considered a good idea, as you have already paid interest part. So, always choose to balance transfer your loan during the initial years of the loan tenure. There are different costs involved in transferring your home loan. The various types of cost include processing charges, foreclosure charges, legal and technical charges etc. So, always compare costs and benefits, and opt for balance transfer only when benefits outweigh costs. The decision to transfer your home loan has long-term implications and should not be taken in a hurry. So, choose for home loan balance transfer only after a detailed comparative analysis of aforesaid things.

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