When Should You Refinance?
Refinancing (or Balance Transfer) means taking a new loan from a different bank to pay off your existing loan. The goal is to secure a lower interest rate, which reduces your total interest outflow.
Intelligence Insight: A Balance Transfer is most beneficial in the early years of your home loan. Since EMIs are front-loaded with interest, a 0.5% drop in interest rate during the first 5 years of a 20-year loan will save you lakhs. In the last 5 years of a loan, refinancing is rarely worth the processing fee.