Home loan transfer is a technique of taking a housing loan for payment of current home loan(s). When you decide to switch to another lending institution then you can easily crack a good deal. You would be able to choose home loan transfer if-
• You are intending to lower your interest rate and payments.
• You want to decrease home loan term by paying home loan in a faster way.
• You have more interest in using the equity in your house in order to get money for meeting your divergent
needs. In this case, you will be allowed to take the top-up amount over the present loan in order to get required cash for fulfilling your varied requirements.
You can opt for the home loan transfer option if the current lender has made an unexpected increase in the rate of interest and the other lender is still giving the home loan at easy rate of interest.
The process of home loan transfer to a new lending institution is quite an easy task. The old lending institution will hand over property related documents to the new lender, whereas, the latter will give the cheque of the outstanding loan balance to the former lender. As a borrower, you should keep the photocopy of all loan and property related documents. If the old lending institution will make any delay in submitting certain documents then the new lending institution can ask to show photo state copies. However, it is necessary that before starting the whole process, you should do a proper research work on your interest rate which is being provided by varied lending institutions.
• You are intending to lower your interest rate and payments.
• You want to decrease home loan term by paying home loan in a faster way.
• You have more interest in using the equity in your house in order to get money for meeting your divergent
needs. In this case, you will be allowed to take the top-up amount over the present loan in order to get required cash for fulfilling your varied requirements.
You can opt for the home loan transfer option if the current lender has made an unexpected increase in the rate of interest and the other lender is still giving the home loan at easy rate of interest.
The process of home loan transfer to a new lending institution is quite an easy task. The old lending institution will hand over property related documents to the new lender, whereas, the latter will give the cheque of the outstanding loan balance to the former lender. As a borrower, you should keep the photocopy of all loan and property related documents. If the old lending institution will make any delay in submitting certain documents then the new lending institution can ask to show photo state copies. However, it is necessary that before starting the whole process, you should do a proper research work on your interest rate which is being provided by varied lending institutions.
2 comments:
Fantastic thoughts about home loan which really helps and solve their confusion.
I think this is like refinancing. Transferring the loan to another lender in order to pay the old one at a lower rate value, am I correct?
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