The most popular banking product is a mortgage loan. However, not everyone knows how to arrange it and what nuances should be paid attention so that the payment of the loan does not turn into an unbearable burden.
Choosing a mortgage is a nontrivial task. Any mistake will easily lead to the loss of money and new housing. First you need to answer the question: do you really need a loan? If you are standing in line for social housing or have another opportunity to buy an apartment, it is hardly worth contacting a mortgage. In the case when you have no other options, the loan will definitely solve the housing problem.
However, you should not run headlong into the first available bank and get a loan. First you need to familiarize yourself with the web pages of credit institutions on the Internet, visit banking forums and select 7-8 banks that provide loans for housing. Then you should study their “products” and read reviews of citizens who have already issued a loan. From these reviews, for all their subjectivity, a lot of valuable information can be obtained. Examine the rates, the terms of the loans, the possible monthly payment, the price of the insurance policy, the methods of repayment of the loan.
Good health is a friend of the mortgage
Making a loan, really assess your capabilities. Statistics show that the borrower easily makes money for a loan when the amount of its payment does not exceed 35% of monthly income. However, collection agencies claim that in fact this figure is even lower and amounts to about 20-30%. This means that you will have to significantly cut spending on entertainment, the purchase of goods, and even for children. Not every family is able to limit itself for years.
Consequently, a potential borrower must have a stable, high and steady income , as well as, immorally, good health.After all, if you lose your job or get sick, then stop paying. And the bank, in turn, will immediately begin to charge fines and in the end will select the apartment. This leads to another tip: always keep in reserve an amount equal to 5-6 monthly mortgage payments. This will allow you to gain time to look for a new job or treatment. Finally, if you can, do as much as possible larger initial payment. This will reduce the loan and somewhat reduce the price of it.
How to choose a bank
The law on advertising prohibits comparing bank services and talking about the advantage of one credit institution over another. I can only say that there is someone to choose from : today, dozens of Russian banks issue mortgage loans. Here is a far from complete list: Sberbank, VTB 24, Alfa-Bank, Russian Agricultural Bank, Delta Credit, Otkritie Financial Corporation, VTB Bank of Moscow, RosEvroBank, Vozrozhdenie, Gazprombank, Tinkoff Bank, Nordea Bank, MTS Bank, Rossgostrakh Bank and many others. Moreover, some credit institutions offer borrowers several mortgage programs with different conditions at once.
For how long to issue a mortgage loan
There is also no definite answer. In Russia, banks provide mortgage loans for a period of five to 30 years. It all depends on the size of the income of the Russians and on the economic situation in the country. It is clear that the shorter the term, the lower the overpayment on the loan . And it is right. For example, two borrowers took 3 million rubles each. One issued a loan for five years, and the second – at 20. Let the interest rate on both be 13% (although in reality, the longer the loan term, the higher the interest rate). The first will give the bank for five years 4 118 562 rubles. And the second in 20 years will transfer 8,563,550 rubles to the accounts of a credit institution. It turns out that a borrower who has signed a five-year contract will overpay a little more than 1.1 million rubles, and a person who has issued a mortgage for 20 years will receive more than 5.5 million.
However, do not forget that the shorter the term of the mortgage, the greater the monthly payment. Thus, a borrower who has issued a loan for five years, in our example, will begin to pay 66,642 rubles each month. In turn, the amount of payment of a person who has signed a contract for 20 years will be 35,683 rubles.
Therefore, each client must choose the most convenient time for a refund. For my part, I can recommend to pay the creditor as quickly as possible. If we talk about partial or full early repayment, it is best to do it in the first half of the term of the contract . The fact is that it was during this period that the bank accrued the highest interest on the principal amount. Therefore, there is a reason to reduce it. But if you repay the loan early in the second half, it will give mostly a moral effect. After all, by that time the borrower will pay most of the interest.
And finally, the last recommendation on the date. Suppose you found a bank, calculated payments and found out that you can repay a loan in five years. But do not rush to sign the contract. Multiply this figure by one and a half, or better twice. 6-10 years will turn out. Here for this period and make out a mortgage. The fact is that this “golden rule” is derived from many years of observation. It comes from the fact that a person tends to exaggerate their capabilities. Therefore, it is better to be safe and prolong the contract than to pay fines or, even worse, to part with the housing.
What else, besides interest and principal, will have to pay on the mortgage
In addition to the principal and interest, each “mortgage” pays insurance. Usually the bank forces the borrower to insure life and health, the risks of loss and damage to the apartment, as well as the termination or restriction of the right of ownership. Each of the banks has its own terms of the loan. In some credit institutions, these requirements are mandatory. In others, you can refuse life and health insurance, but then the bank will immediately raise the rate by 1-1.5 percentage points. Thus, you will either pay for the insurance, or you will receive a higher interest rate. If we talk about the amount of insurance premiums, they average on average from 1% to 3% of the cost of the loan.
In addition, the bank has the right to raise the rate by 0.5-1 ppt, if you are not a member of its salary project. Finally, some credit organizations will “throw over” another 1-2 pp for the period before the date of registration of the mortgage, in order to minimize their risks.
“Pitfalls” of mortgage
While housing is in the mortgage, the borrower can not fully dispose of them. He has no right to independently sell, exchange or donate an apartment. The bank makes in the USRN (the unified state register of real estate) a note stating that it is pledged. Therefore, attempts to dispose of housing bypassing the mortgagee qualify as a criminal offense. This must always be remembered.
The loan should be paid carefully in accordance with the schedule received at the bank. If the borrower makes a delay or ceases to pay at all, the credit institution will charge fines, and later may take the apartment through court, evicting the debtor and his family to the street. Examples – a great many.
In the event of financial difficulties (due to job loss, illness or the collapse of the business), there is no delay in repayment of payments. Only installments are possible. This means that you have to pay at least something or sell an apartment under the supervision of a bank to pay off the loan.
So is it worth taking a mortgage loan?
If you do not have rich parents or relatives who can buy or leave an apartment in inheritance, there is no money to buy housing, then a mortgage is a real way out. However, do not approach this issue lightly. It should be remembered that a mortgage loan is a large monetary obligation that you place not only on yourself, but also on your family. After all, the funds that you could spend on children or a spouse, will now go to the bank. And the loss of work or business, illness will lead to delays, fines and even loss of housing.
Therefore, soberly assess your financial and business opportunities, as well as your health. Gradually improve your position. Living in a one-room apartment, do not immediately buy a five-room apartment. First get a loan for “dvushku”. Having paid it, you can sell the apartment and issue a new mortgage already on a three-room apartment. Such a well-considered position will allow you, without straining yourself, in the end to solve the housing problem.