Two home loans? Combine them into one and save money – Here’s how

financialexpress.com:

It can be challenging to handle multiple home loans when interest rates are high and you have no additional income to manage higher interest rates. There can be several other challenges of having multiple home loans, but if you can club them into one, then it can allow you some breathing space.

What are the options? If you want to combine two different home loans into a single loan, you can do it by using the debt consolidation approach.

Let us understand the different ways to consolidate the two home loans and save money.

When managing two home loans at the same time, you require lots of financial discipline and need to keep a strict tab on changes in interest rates. Depending on the size of the loan, repayment tenure and your credit score, there may be different interest rates on each loan.

In the long term, even a little spike in the interest rate can make a huge difference to your overall repayment requirement. Having two big loans at the same time can reduce your capacity to get a new loan. If both the home loans are from the same lender, a default in repayment of any one of the home loans can impact the other loan as well. In such a situation, you can combine both the home loan accounts into one by using the debt consolidation option.

You can consolidate both home loans into one loan by using the home loanbalance transfer option. First, you need to explore the appropriate lender that allows you to consolidate two home loans at a lower interest rate using the balance transfer and levying zero or a very low charge on it. The lender will assess your creditworthiness and loan eligibility to repay the combined loan amount. You also need to take consent from the existing lenders to transfer your loans.

The new lender