This is How a Home Loan Refinance Calculator Helps You Plan Better!

Home loan interest rates have been on the decline for quite some time now, which is the reason why so many borrowers are taking advantage of this and applying for home loans. But there are many cases where borrowers who have already taken a home loan a few years back are now finding new home loan plans offering much better benefits. Does this mean that they lost out on better deals? Not at all! If you already have a home loan but find a lender currently offering a much better one, there is always the option of refinancing the current home loan. This is also called a home loan balance transfer where the current loan is transferred from one lender to the other for better terms. These terms could include a lower interest rate, a top-up loan, or even better repayment terms. 

Now, before refinancing a home loan, it is better for a borrower to first use a home loan refinance calculator. This calculator is an online tool that can help provide an estimate of the funds that the borrower would save if they go through with the home loan transfer. 

Take a look at why using a home loan refinance calculator is beneficial:

1.The calculator is very easy to make use of 

If not for a home loan transfer calculator, borrowers would have had to manually calculate the monthly instalments of their loans. Now, this could lead to errors, which could cause problems in the repayment plan. Thankfully, the calculator can be relied upon, where all that is needed to be done is to provide details about the revised housing loan interest rate, outstanding loan amount, as well as repayment tenure. Once this is done, the calculator will then display the new loan’s EMIs. 

2.It displays the revised EMIs after the home loan balance transfer

While going for a home loan balance transfer, you would want a better repayment plan to suit your budget as compared to the current one. This is why it is important to use a home loan refinance calculator as it displays the revised EMIs you would have to pay after the transfer. You can then decide whether opting to transfer the loan is a good decision or not. 

3.The calculator lets you know of the potential savings the transfer will bring

The primary aim for most borrowers opting to refinance their home loans is to save money. This is exactly what a home loan refinance calculator is going to help you do. Once you have filled up all the details it requires, it will also display the savings you can make with the revised loan’s terms. 

With the help of a home loan balance transfer calculator, borrowers are aware of whether transferring their home loan would be a beneficial move or not. Most financial institutions provide this calculator on their official websites, which can be used by anyone for free. Using it can help avoid any financial struggles in the future when it comes to repaying the EMIs of the home loan.