Unfortunately, many young families have to deal with the housing problem. Therefore, those who are not able to buy their own apartment, but do not want to spend colossal sums monthly to pay for rented housing, are trying to find out which bank offers the most favorable mortgage terms.
Home Loan Programs
Today, banking institutions offer several types of programs, the conditions of which depend on the collateral and the purpose of lending. So, the most common option is a loan that is issued on the security of available housing. Mortgage terms provided by some banks require the availability of additional security in the form of a guarantee for the borrower. The next type of loan is a loan without additional security. This category includes programs for the purchase of housing under construction. This type of lending is offered by many modern banks, including Sberbank. A mortgage without a down payment implies a higher interest rate. In addition, a person planning to take such a loan should have money to pay for real estate services, register a transaction and arrange insurance.
Mortgage without down payment: is it beneficial for the borrower?
In fact, this is a very controversial issue, so when considering it, all the smallest nuances should be taken into account. On the one hand, such loans are available to consumers who do not have enough money to purchase a home, but who are able to repay a loan. On the other hand, there is always the risk that in case of default, the bank may take away the apartment. In addition, a loan issued by an unreliable organization can cause many problems. A particular risk is the currency mortgage. All payments on it are tied to a constantly changing exchange rate. Therefore, it is better for everyone who decided to get a loan to do it in national currency.
Who can apply for a mortgage without a down payment?
This program can be used by all citizens who do not have their own housing. Mortgages without an initial payment are due to young families, waiting lists for improving housing conditions and people who want to refinance in order to pay off another bank. Young families mean couples in which at least one of the spouses has not reached the age of 35. To use the mortgage program can only citizens who have a constant source of income and who are 21 years old. The bank pays special attention to the credit history of a potential borrower. If it is bad, then the mortgage will most likely be denied.
What conditions does Sberbank offer?
The mortgage is issued exclusively in national currency. A prerequisite is insurance of purchased housing. The maximum term for which the program is designed is 30 years. The interest on the mortgage ranges from 11.7-13.7%. If the consumer applies for loans for the construction of suburban real estate, then the rate can be reduced in exchange for the provision of collateral in the form of a land plot. In addition, to reduce risks, the bank may require the provision of one or more guarantors. In the case of acquisition of unfinished housing, the interest on the mortgage may be increased by 1.25%.
List of required documents
Any financial institution reserves the right to request additional securities from a potential borrower, allowing to specify the level of solvency of the client and offer optimal mortgage conditions. The standard set of documents includes:
- Identification documents. Usually, an internal passport with a registration mark is sufficient.
- Documents confirming the employment and solvency of a potential client. As a rule, the borrower is required to present a salary certificate and a photocopy of the labor.
- Pledged property documentation. This can be a report on the assessment of the cost of real estate purchased on credit or a contract-basis for the sale of housing.
How to get a mortgage without a down payment?
First of all, the potential borrower must make an objective assessment of his financial capabilities and determine the amount that he can pay monthly without harming his own family. After this, it is recommended that you select several reliable banks and carefully study their proposed mortgage terms. Having finally decided on the choice, you can begin to prepare the necessary package of documents. Then you can apply to the bank and wait for a response. In the case of a positive decision, you can proceed to the search for a suitable property. After that, the borrower must provide the bank with all the documentation for the selected housing and on the basis of this sign a loan agreement.
Mortgage costing
Many potential borrowers are interested in how to calculate a mortgage. Today, on the websites of many banks there is a special calculator that allows you to quickly determine the amount of monthly payments. Modern credit programs offer two types of payments: annuity and differentiated.
In the first case, payments are made in equal parts, in the second - the amount of the monthly installment is constantly decreasing. Therefore, before calculating the mortgage, you need to decide on the appropriate payment system. To find out the amount of monthly installments, you need to know the loan term and the exact cost of housing. Using a mortgage calculator, within half an hour you can find the most profitable offers with an optimal repayment schedule.
Early repayment of a mortgage
Each conscientious borrower is interested in the early repayment of a loan. Over the next 25-30 years, few people want to make mandatory payments monthly. Especially for such people, some banks prescribe in the contract the possibility of partial or full early repayment of the mortgage. Partial prepayment involves the monthly payment of an amount significantly exceeding the amount of mandatory payment. In this case, the borrower has the right to apply to the bank with a request to reduce the loan term. In order not to overpay the money for the initial term of the mortgage, it is recommended that you inform the insurance company about the reduction in terms. The bank will have to recount the new amount of the monthly payment. This will allow the borrower to significantly reduce the amount of overpayment for the use of credit funds.
Full repayment of a mortgage occurs according to the same scheme. The borrower, who decided to repay the loan ahead of schedule, must contact the bank with the appropriate application. As a rule, the majority of managers voices an incomplete amount of the balance, which does not include commissions and other mandatory contributions. Therefore, before making the last payment, the borrower must request a certificate from the bank about the status of the credit account. This will completely close the loan. After the full repayment of the mortgage, the borrower goes to the insurance company, which must return the funds for unused insurance. Documents on the removal of encumbrance from real estate are also processed there.
Mortgage Refinancing
Recently, an increasing number of borrowers are actively making attempts to restructure loans taken earlier. Such a re-registration of mortgages opens up great opportunities. It allows you to reduce interest rates, reduce the amount of payments or reduce the loan term. However, most experts argue that resorting to refinancing is advisable only if the difference between the interest rates offered by the old and new banks is at least 3%. The restructuring is especially beneficial for those who took foreign currency loans.