Even if at the time of receiving the mortgage, the borrower was satisfied with the rate, after some time, at first, the favorable interest rate became disproportionately high compared to the new mortgage programs that had appeared. Due to the fact that a large amount of money was borrowed from a bank, even a modest difference in percentages turns into a rather substantial overpayment over several years. You can avoid it if you refinance a mortgage in your bank or from a third-party lender. However, this should be done only after a thorough assessment of the benefits and counting all the new costs arising from the reissue of debt.
The refinancing agreement allows you to get a new target loan to pay off the existing one, but on more favorable terms and without an initial installment. Along with ordinary non-earmarked loans, you can refinance mortgages at a lower percentage, reducing the percentage overpayment and reducing the regular payment.
Before you decide for yourself whether to refinance a mortgage, you must determine the final benefit of this step. Just a few years ago, home purchase funds were issued at a much higher rate on mortgages, which is why the topic of on-lending under old contracts is so relevant. However, there is a significant “but” – as a rule, the payment was calculated using the annuity scheme, with priority interest paid in the first part of the loan period, so refinancing an old mortgage, when the balance of debt is small, results in questionable savings on interest. The decision should be made taking into account a complete analysis of all the advantages and disadvantages
Reasons for refinancing:
Possible negative consequences and disadvantages of the program should be analyzed:
Most mortgage is taken in the calculation for the completion of the family, the birth of children, which is reflected in the result on per capita income. The intention to reissue a loan does not mean that the new lender will be ready to provide favorable conditions for refinancing.
Evaluating whether the offer of a particular bank is profitable, you should first examine all other programs. Sometimes a bank provides a profitable refinancing of a consumer loan at a minimum interest rate with an increase in the amount of the credit line, which allows, without prejudice and additional efforts, to close the mortgage debt with the amount received. Before the final decision should consider the option of lending to the best current refinancing programs.
The program from Russian Bank offers to consolidate several existing loans under the following conditions:
To conclude an agreement with the bank, it is necessary to comply with the parameters: be older than 21 years, work with the last employer for six months. At the time of the last installment to be younger than 75 years.
When refinancing with Private Bank, it is possible to receive up to 30 million rubles to close a debt on a valid mortgage (this limit is set for the capital region).
Standard Private Bank Terms:
If the borrower decided to use the program with the presentation of a minimum of documents, the maximum limit is limited to half the estimated value of the object.
Recently, taking into account the growth of bad loans and the general debt load of the population, banks are more carefully considering candidates for mortgages. Under earlier treaties, less stringent restrictions applied.
Faced with the problem of the danger of non-return, each applicant is carefully checked.
A lender who has high customer requirements is unlikely to take up refinancing the debt if in the past there were delays or earnings decreased.
The new program entails re-registration of the collateral object, which after long years of payments could lose its technical characteristics and lose liquidity.
Each bank has its own requirements, based on the established internal regulations and organization policies. Nevertheless, all refinancing programs involve the provision of basic documents: applications for a reduction in interest and a Russian passport.
When revising the conditions of the mortgage will definitely need the following paper:
It must be remembered that even having a good income and fully complying with the parameters of a new lender, you can get a rejection if you find serious delays under the current contract.
Before refinancing, the borrower should carefully calculate the benefits and additional costs. Calculate savings on interest can be using a mortgage calculator, and the costs will have to determine on their own, based on the specific conditions of the bank.
Additional cost items for mortgage re-registration are presented:
It is necessary to take into account that only the primary contract can be refinanced. Banking structures do not imply an endless revision of credit conditions. Therefore, the choice of programs should be approached as carefully and seriously as possible.