www.bigiboo.com
Most of the Indians living in U.S have good to perfect credit scores. They always pay their balance in full. They can easily get the 0% balance transfer options and can use that to save some money . Most of the NRIs have taken Home loans back at home when they were available at 6-7%. The rate of home loans in India is now around 12%. With the dollar rising and rupee falling it is the right time to take some advantage of 0% balance transfer. If you have a good long credit history its easy to get arnd 10000 - 15000 $ as a balance transfer option. Taking into account the 3% balance transfer fees it still a good deal to get the balance transfer and pre pay some of the principal on home loan in India. Consider the scenario below :
Home Loan in India = 2,500,000 INR
Monthly Payment for 20 Year Loan = 27527 INR
Pre-Pay using 10000 USD = 500000 INR
Monthly payment after Pre-Pay on 2,000,000 INR = 22021 INR
Monthly saving : 27527 - 22021 = 5506
Monthly saving is arnd 100 USD. Which can be used to pay the balance transfer here. Without putting any extra money this balance can be paid fully in arnd 8 years. Obviously it assumes that you have to roll over 0% at the end of the term. Overall it will be a huge saving if you can pre-pay 25% of the home loan. You will be saving 12 years of payments. The more you can transfer the more you will save.
-Manish
http://www.bigiboo.com
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