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Balance Transfer of Home Loan
Everyday we hear about falling Home Loan interest rates.
Are you planning to buy your dream home now???
Or you already have got a home loan deal for yourself? If yes, are you paying 20% Extra EMIs on your Home Loan EMI??
Just wait for a while & spend some time to evaluate your home loan option in both scenarios, if you are planning to buy a home or you already running with a home loan.
A balance transfer can help you in evaluating a better deal for your Home Loan. There are various reasons on which a balance transfer can be a good option for you. The reasons can be that it might lower down your rate of interest, the loan tenure will extend and with the Top Up amount you can use it anywhere you want to.
But you also need to check whether a Balance transferee is a good option or not??
Following are the points that you need to keep in your mind before going for a BT.
1) Is there a cost involved?
You need to check this thing with your Bank that what will be prepayment charges that the Bank will take from you. Most commonly it ranges from 2% to 4%. These charges can also be negotiated. Do check the prepayment penalty, as it is the most important clause while taking a Balance Transfer.
2) What will be your rate of interest?
You need to check with the Bank that what will be rate of interest that the Bank will charge from you. You need to check that the Emi that you would be paying now should be less then or equivalent to what you are paying to your existing Bank.
3) Processing Fee charge
Do check the processing fee that will be deducted after sanctioning the loan. You must be aware about it. The processing fee sometimes emerges as an hidden charge, so one need to check this too.
To check whether a Balance Transfer is a good option for you or not, check this link
It’s not always that a Balance Transfer will be a good option for a person. It can be a non relevant at a particular point of time. |
