Things To Know Before Choosing Mortgage Loan Transfer

The interest rate of a mortgage loan, home loan, or other kinds of loans has a great and important consequence for the borrower. Some financial companies may exist only for profit and therefore charge phenomenal interest rates, burning a hole in the pockets of the borrowers. Fortunately, you can transfer your mortgage loan to the reputed and customer friendly financial companies in India like Bajaj Finserv and pay lower EMI (Equated Monthly Instalment) and interest rate for the same loan. But before you actually opt for the mortgage loan balance transfer, here are some important factors for you to consider.

  • Overall Repayment Amount- While you may find that your new lender is offering you a lesser interest rate, you should also check the overall payment amount. Remember that each of your EMIs has an interest component to them. If the interest rate is lower but the tenure of repayment is longer, you may be paying an even larger amount.
     
  • Know The Fee Involved- When you choose to transfer your mortgage loan balance, you may be required to pay certain kinds of fee. These include the technical fee, administrative fee, processing fee, legal fee and other kinds of fees and expenditures. Calculate the accumulated and final amount for you and ensure that you are not paying excessively.

Must Read: Using A Mortgage Loan Calculator Is Beneficial Or Not?

  • Know The Fee Involved- When you choose to transfer your mortgage loan balance, you may be required to pay certain kinds of fee. These include the technical fee, administrative fee, processing fee, legal fee and other kinds of fees and expenditures. Calculate the accumulated and final amount for you and ensure that you are not paying excessively.
     
  • Do Not Fall For Gimmicks- Do not change your lender solely because the new lender is offering you things that you are not going to use. These may include insurance cover or a free credit card. Also, go through the terms and conditions, and clauses of the new lender carefully. If there are complicated clauses and conditions you think that the new lenders trying to hide something, you should avoid loan transfer.

When you want lower and more attractive interest rates along with a hassle-free loan repayment process, you can choose the reputed financial companies like Bajaj Finserv for your mortgage loan balance transfer.

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