I have opted for a home loan 3 years back @10.00% p.a. That time my EMI was Rs. 19,000 which was raised a couple of times due to increase in interest rates (@12.50% p.a.) in last 3 years. Now it is reduced @ 11% p.a.
I wish to shift this loan to a PSU bank offering around 10.00% p.a. and hoping for further reduction in interest rates. I was wondering how exactly to calculate the benefit of shifting. Considering all factors put together. Existing Loan of Rs. 18,00,000 (principal pending as on date Rs. 16,00,000) . EMI am paying is Rs. 20,200 for a term of 17 years (raised from 15 years to 17 years).
Proposed Tenure with the new bank is 12-15 years considering EMI remains around 20k.
Help me to assess whether shifting make sense or not?