Hyderabad:Home loan is the way to fulfil the dream of owning a house. Banks and housing companies are now lending loans at 6.40 to 6.60 per cent interest. It is attracting a lot of people. While some, who have already taken a loan are paying high-interest rates though the loan is available at an affordable interest rate. Hence, they are trying to transfer their loan to another company.
The primary goal behind transferring a home loan from one company to another is to save money on the interest rate. Banks/mortgage companies consider several factors in determining the interest rate for a borrower. Especially credit history and credit score. There are inspection and maintenance fees when transferring a loan. Documents must be submitted in the same manner as the new loan.
There are documentation costs and other charges. All of these need to be taken into account. The decision should be changed if you feel like there are no greater benefits with the loan transfer. Check if there are any facilities like overdraft while transferring the balance. An overdraft account must be opened in addition to the new home account. The borrower should deposit his or her surplus amount in it. Cash can be withdrawn from this when required. When calculating the interest rate, interest is charged on the remaining amount, excluding the amount in the overdraft account. This will reduce the burden in the long run.