Anyone who goes to the bank for a loan, wants him to have had the best lending terms: interest rate lower, the credit is greater monthly payment lower. The first thing that draws attention to the borrower, is the rate on the loan. It seems that the rate is lower, the better, the less money the borrower overpay in the end. Of course it is, but about 50% of cases. In addition to rates, you need to pay attention to the various fees and commissions which the bank charges the borrower in addition to the rate on the size of the loan for the down payment that the borrower must pay from its own funds. The right choice of mortgage deals – choose integrated, and rate and additional costs, and loan amount.
Effective rate
The most objective indicator of the “cost” loan – not claimed by the bank interest rate, and the so-called effective rate. These are the interest rates that will pay as a result of people taking a mortgage, taking into account absolutely all the payments the borrower – and the very mortgage rates and additional costs, which makes the borrower during the loan (and for payments to the bank, and payments to third parties related to the loan – in particular, estimate).
For example, if the borrower uses the loan 10 years, an additional loan fees of 4% will increase the effective interest rate of 4% / 10 = 0.4%. But the situation is different. The borrower takes out a loan for the implementation of long-distance exchange, for example, at 11% per annum to buy a new apartment in the city, which wants to live, then he wants to sell his apartment in the city where he lived before, and repay the loan. In this case the loan is needed about six months, and 4% commission – still, 4% / 0.5 years = 8% per annum. Thus, the effective rate if the borrower has no other expenses will be 19%. Such a borrower is more profitable to choose a credit program with even higher rates, but a bank that does not charge any additional fees.
Additional expenses in the bank
The fact that borrowers are first and foremost pay attention to interest rates, banks are well aware, so lenders compete with each other, announcing a lower interest rate, charging a variety of additional charges:
1. For loan application.
Even three years ago the commission charged many banks. It was not much: 1000-2000 rubles. Now the banks that charge a commission for consideration, but rather an exception: it was a very negative reaction was from borrowers in the commission of the bank, especially if on a review of the borrower, the bank made the decision to deny the loan.
2. For maintaining the loan account.
The most “insidious” Banking Commission. At first glance, this commission can be quite small: 0.25 – 1% of the loans, but are charged by the bank all the time, as long as the borrower uses the loan. To be fair to point out that the commission charging unit banks.
3. For loans.
The commission in different banks can be 1-2% of the amount issued by the bank loan, and as high as 4-5%. However, this one-time commission by taking the bank once. But there is one catch: for different borrowers different tasks, and on the basis of these tasks, people use different amounts of time credit.
Recently, banks began to refuse the payment of additional commissions. Example Savings Bank canceled in April 2010, all additional fees and commissions. Following the Savings Bank, who at the time, who all, to abolish the commission announced, and some other banks. But most of the credit institutions, this paper costs the borrower remains.
Bank “under the counter”
Strangely enough, but even information about a very favorable credit is not always easy to get from the media and advertising. Each bank has its own advertising policy, and when some do not offer better credit terms, but a large-scale advertising campaign, while others prefer to offer the best conditions for borrowers, but a modest budget to spend on “promotion” of the product. These banks attract customers exclusively through mortgage brokers and real estate agencies that have long and successful working with a mortgage.
“Favorable mortgage” step by step
To sum up a little: how is it that the mortgage to take advantage of the maximum benefit.
1. Define the problem: why there is a mortgage loan, and what size loan needed.
2. Looking for a mortgage program with the minimum rates on loans.
3. Carefully study the program selected banks to see what additional costs arise, and what the commission will have to pay. Usually on the official websites of banks all commissions are, however, if the attractive interest rates banks are trying to isolate in large type, the fees and show plain text – the way out the main information about the bank’s loan programs.
4. Selecting, as it seems, the best programs of banks, it makes sense to turn to mortgage brokers: they know the program with even better terms. After all, if you’re lucky to get a loan at a rate of even half a percentage point lower than that found independently, the benefit may be greater than the commission, which will take a mortgage broker. For their service brokers charge a commission – a percentage of the loan amount (usually 1-2%) or a fixed amount. Usually the fee is indicated on the website. If the mortgage broker does not offer better terms, feel free to submit documents to the selected banks without a broker, knowing that the choices made correctly.
Where else will have to pay for a mortgage
However, the mortgage – it’s not only the loan and the process to obtain it is not only the interaction with the bank. Typically, the borrower must work with insurers, real estate appraisers, and then select the bank and mortgage programs – do be registered property rights, most mortgages and so on. For all this money paid. Here we must be prepared for the fact that banks (usually) rely on certain appraisers, insurers, certain, and the registration of the contract of sale offered to use the services of certain registers. And strongly recommend them to prospective customers. That is, choosing a bank, the borrower chooses to boot and the organizations that offers him the pot. The choice of the borrower, of course, there is, but in most cases only from those candidates that are offered by the bank.
1. Assessment of the apartment.
Ulug different appraisal companies are about the same: 4-7 thousand rubles per apartment depending on the urgency, so if you choose to appraisers do not make sense that a company that will take over services for $ 100 less, and one that will evaluate expeditiously and evaluate as objectively as possible, not underestimating the value of the estimated flat.
2. Insurance.
In the case of insurance makes sense, first of all, do not pay attention to prices, and the insurance company pursuant to its obligations for payments. After all, if the insured event the insurance company will not pay the debt and extinguish the borrower’s bank, then extinguish the debt will have the most to the borrower. But from reliable insurance companies, which, they say, “always pay”, you can choose the one where rates will be lower. As a rule, the commission is 0.8-1.5% of insurers of credit, increased by 10% (depending on age and health of the borrower).
3. Registration
Formally, the state registration of the mortgage transaction is limited to state duty in about 2000 rubles (1000 rubles worth recording deal and 1000 rubles – the right of ownership registration.) This amount may increase slightly if necessary correction of data in documents such as passport information. Each adjustment costs 200 rubles.
But often the preparation for the contract to the registration of banks is recommended to apply to those organizations in which the bank is sure. Attribute this to the bank’s claims that a sales contract should contain clauses dealing with the acquisition of real estate on credit of the bank. And it’s “registrars” are not only competent to make a contract, but also keep track of all the necessary items in the contract were present. “Registrars” different banks charge different money from 8000 rubles to 30 rubles (which includes stamp duty), and somewhere in the bank does it for you for free, and the borrower will only pay the state fee according to official rates.