Home loan interest keeps increasing and decreasing with time. You get a loan with a lower interest from one financial institution at a given time. However, amidst the tenor of your loan, you come across another loan with much lower interest. In such case, home loan transfer can really save you from paying high interest for your loan. However, it is important to choose the right lender with less rigid terms and conditions. In this process, the new lender agrees to take over and finance your home loan by paying the outstanding amount to your existing lender. After receiving the pending amount, the current lender is obliged to issue the borrower no dues certificate along with the released documents. The released documents are then submitted to the new lender. After the paperwork is over, the borrower is now supposed to pay EMIs to the new lender. This process is also called refinancing home loan. The major advantage of home loan transfer is that the borrower is free from paying high interest rates. Instead, the borrower can make his/her EMIs more affordable with lower interest rates. With lower interest rate the borrower can save enough money for other purposes like prepayment of a part of the home loan.
Reference Read: 4 Advantages of a Refinancing Your Home Loan
0 Comments
Leave a Reply. |
AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |