Many borrowers look to transfer their home loans to new lenders. This is because it is common to find new home loan plans having much better terms as compared to your existing home loan plan. Transferring your home loan to another lender can help in lowering the loan’s monthly instalments and saving money. However, before doing so, it is very important to first make use of a home loan refinance calculator.

A home loan refinance calculator, also known as a home loan balance transfer calculator, is an online tool that helps users decide whether transferring their loan is a good decision or not. Take a look at why every individual looking to transfer their home loan should use this calculator before doing so:

1. A home loan balance transfer calculator displays the loan’s EMI results after the transfer

The first thing that any borrower should check before accepting a loan is whether the loan’s EMIs can be afforded. This is to ensure that there are no repayment problems later. This is why every borrower planning to transfer their home loan to a new lender should first make use of a home loan balance transfer calculator to understand what the loan’s EMIs would be after the new terms are applied.

1. You can understand the potential savings that can be made with the help of this calculator

Any borrower looking to transfer their home loan would want the new lender to offer them a deal, where they manage to save money. This is why it is so important for them to be aware of whether the new terms are beneficial to their budget. A home loan refinance calculator can help you with that as it displays the potential savings that the new loan plan is offering. You can then decide whether going for a home loan balance transfer is a good option.

1. Using the calculator is very simple and saves a lot of time

Before a home loan balance transfer was available, the only way of checking the new loan plan’s EMIs was through manual calculations. The problem with manual calculations is that even a slight error in the calculations can later lead to problems in repaying the loan’s monthly instalments. These calculations can also take up a lot of your time. All these problems are solved with the help of a home loan refinance calculator. This calculator will display accurate results of the loan’s EMIs based on the revised terms. In addition, these results are displayed within seconds, saving a lot of time. All the user needs to do is submit details about the revised home loan interest rate, outstanding loan amount, and the repayment tenure of the loan. Based on this, the calculator will then display the loan’s EMIs.

To know whether transferring the loan is a good move or not, it is essential for an individual to first make use of a home loan refinance calculator. Most financial institutions make this tool available on their websites. You can log on and use it at any time for free.