5 Situations When You Can Choose Home Loan Transfer
Posted by Atish Nayar on August 2nd, 2017
To avail the advantages of the lower interest rates available on the market, most of the people end up choosing the option of refinancing. Also known as the balance transfer, it lets you opt for a different type of interest rate. If you face any hassles with your interest rate, you can negotiate it with your lender.
So, when is the right time to switch? Read on to find those reasons that would compel you to choose the option of loan transfer:
1. Saving Interest Cost:
One of the most common reasons to choose Home Loan Transfer is the interest rate. If you found yourself paying a high-interest rate on your existing loan as compared to what other lenders are offering, naturally, you would want to switch your way, isn’t it? So, to decrease the interest rate and subsequent EMI, you can choose this option.
2. Fixed to Floating & Vice Versa:
While taking up the home loan, usually, lenders keep two scenarios in front of you. Based on your capability, you can either select floating interest rate or fixed interest rate. In both of the scenarios, there are chances of the interest rate getting affected. So, if you think that you can gain some advantage by changing you interest type, you can go for loan refinancing.
3. Changing the Tenure:
When you actually have to act upon something, you realize your competencies. What if after taking up the loan you find the EMI as an additional burden? In such a scenario, you may contemplate to increase the tenure and subsequently reduce the EMI. But, what if your lender fails to co-operate? If that is the case, you have refinancing option in front of you.
4. Poor Services:
Just to lure the customers, lender put forth some of the amazing offers. But, you must remember that not every shining thing is the gold. Thus, your situation of before and after taking the loan may vary to a great extent. If by any chance, you think that the services of the lender are not appropriate, you can take this switching option and go for some other lender.
5. Changed Financial Status:
Whether you’ve got an increment in your salary or unfortunately have to leave your job, either way, your EMI will be impacted. In case your income decreases, you can select refinancing of the home loan to increase the tenure and vice versa.
So, these are some of the situations where you can consider this option. If you find yourself stuck anywhere while paying your EMIs, don’t think twice and opt for refinancing.
