Refinance mortgage loan the best deals

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2018-04-02 14:51:19

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Despite the fact that refinancing loans long been listed in the list of banking services in the Russian reality it appeared relatively recently. Literally since the development of mortgage lending. Along with the growth of demand for real estate has evolved and the financial services sector. Mortgage in the list of services of each Bank occupies a leading position.

Refinance mortgage loan terms, best offers

The Financial market is developing and offers new tools for the conservation and enhancement of funds. When buying a home helps mortgage, increasing savings deposits are used.

The Practical application of such services as refinance mortgage loan contributed to the trend of the market in recent years, when the number of overdue loans has started to gain momentum. Thus, to date, the service is gaining popularity, more and more banks are willing to consider requests for the refinancing.

Delay-common

Procedure

Giving loan, the Bank expects to make a profit, which covers all service costs plus their profit. Using a mortgage loan, the borrower believes that thus he may move into housing now, and pay over the next few years. But in matters of Finance are always risks. In this case, the borrower is eligible for refinancing.

The Procedure is that a borrower goes to another Bank for a new loan, the proceeds of which will be used to repay the old loan. Under the law, the Bank has no right to refuse the loan if the applicant meets all requirements.

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Refinancing mortgage loan is appropriate in the following cases:

  • Another Bank offers a lower interest rate;
  • Have the ability to get a loan for a longer period and with low fees;
  • The monthly repayment of the old loan becomes unaffordable;
  • There is a proposal for another currency which is beneficial for the borrower.

But it is important to consider another point. Refinancing a mortgage loan can be carried out in the same Bank where the current loan is repaid or a new another Bank. The purpose of the procedure – a relief the credit burden of the borrower.

When we are talking about another institution, “your” the Bank may refuse from transfer documents or early redemption, as he loses in this case its profit and the customer. Such a procedure is not prohibited by law.

Refinancing burden eases

Legal framework

The Procedure is based on a number of draft laws and regulations. The act of refinancing a mortgage loan take into account:

  • Federal Law No. 122 of 1997-the year;
  • The Position of the Central Bank of the Russian Federation No. 54 of 1998;
  • The Position of the Central Bank of the Russian Federation No. 254 from 2004;
  • Federal Law on mortgage No. 102, 1998;
  • The Civil Code, article 355, 390 and 382;
  • The Order of the Ministry of justice of the Russian Federation No. 289/235/290 from 2000 g;
  • Federal law No. 152-FZ of 2003

In the above document describes a procedure for registration, rights and obligations of the borrower and the lender.

An Important point: does the current contract the option of refinancing? Some banks initially prescribed his inability or penalties for such a procedure. If it is missing or it is banned, then the customer is entitled to insist on the inclusion in the agreement.

Procedures

Refinancing a mortgage is a lengthy process that requires resolving a number of legal issues. The first step is the study of market offers and calculations. It is important to note that the procedure requires some costs, which will be discussed next. The feasibility was determined based on calculations made taking into account all associated costs.

Deposit Required – real estate

Note that due to technical issues and the high competition in the banking environment, not all financial institutions have a positive attitude to this initiative of the borrower.

It is not Enough to rely on publicly available information on the website or in promotional materials of the Bank. It can be a simple marketing ploy, while the program of refinancing of mortgage loans is missing, and the offer extends to other types of loans.

A Collection of documents

A List of documents is not different from what was submitted during the initial receipt. A sample list contains the following documents:

  • A statement on refinancing, which is filled in at the place;
  • Proof of income: 2-pit, Bank statement or other payment documents;
  • Passport of the applicant;
  • Family – a marriage certificate;
  • Documents in the mortgage estate: title document, the contract is a completed contract and statements from government agencies on registration;
  • A copy of the Bank mortgage contract.

If there's a refinance mortgage loan in the savings Bank, can be used the maternity capital. Depending on such circumstances, the Bank may request additional documents:

  • Certificate on the parent capital;
  • Birth certificate of children;
  • Extractfrom Bank on the balances in the account.

If the Bank will require the involvement of guarantors, these persons must also provide a list of documents, including proof of solvency.

document List

Complexity

When the borrower applies for a refinance mortgage loan in the savings Bank or other financial institution, the current lender may refuse from granting of some documents. In this case, it can help a professional lawyer in the banking sector or the new lender may be required to submit documents for issuance.

It is Also important to note that the proof of income will be necessary to provide two kinds of documents: form 2-NDFL and the form of the Bank. Indicators of income, of course, must be higher than the minimum subsistence level and sufficient to continue to cover the monthly repayment on the mortgage.

Another challenge – when refinancing a mortgage loan, banks may require collateral. Given the loan amount, collateral can only be the estate. But the mortgage is still on the balance of the first lender.

In practice, in such cases, people resort to a little manipulation: agree with friends or relatives who have an equivalent property, mortgage the property as collateral, and after the renewal of the mortgage return to their seats.

non-issue

Review Process

Taking into consideration absolutely nothing. Can refuse even to solvent customers. But a big argument can serve as collateral. It is worth remembering that the liquid collateral – the more chances you have to win favor of the Bank.

Also a lot of words to say about the importance of credit history. But experts say that such a moment is more relevant for small loans, where no collateral. A good credit history no one has yet prevented. Usually the review process takes 5-7 business days. If a positive decision, then a process of registration.

Costs

Refinancing mortgage loan in a Bank entails some costs that are assigned entirely to the applicant. Some financial institutions even the procedure of consideration of the application is on a paid basis. In case of refusal the money is not returned.

If the procedure is approved, the applicant must be prepared for the following expenditure:

  1. Real estate Appraisal. The law States that the procedure can be done by any valuer who has the appropriate license. But the banks employ their own permanent partners. If the Bank insists on a specific appraiser, the applicant is forced to agree.
  2. The Cost of processing orders and servicing the specific client, the Bank imposes on customers. So, have to pay a fee for the issuance of mortgage.
  3. To transfer the mortgage housing balance with the old lender, is also charged.
  4. Register a new pledge or the same object is also paid.
  5. For some types of documents.
  6. Credit Insurance, real estate or own income – according to the rules of the Bank.
  7. The fee, if there are notarial documents.

Depending on the terms of the applicable lender, may be charged for early loan repayment penalties.

refinance mortgage loan Sberbank

Benefits

Choosing another Bank, the customer is always looking for more favorable conditions. Experts advise that if you refinance mortgage loan best offers clear benefits if there is a difference according to several parameters.

For some items, you should estimate the benefits?

  1. Interest rate. How much lower? As a rule, if the difference does not exceed 3%, the cost of processing and inflation, the client may not particularly win in the end.
  2. Change period. Deep financial analysis that not all ordinary citizens, shows that the “long” your loan, the more expensive it costs. Long term should be chosen if it is not possible at present to pay more.
  3. Decrease the monthly premiums. Here the same principle: winning now in the end you can give more. But if the new proposal is really beneficial, you should consider individually.
  4. Consolidation of loans. Many Russians take several loans. Practice shows that 2-3 payments per month – heavy burdens. Combining all obligations into one, you can live much calmer.

Where to go

Competition in the banking environment high. But this situation to the consumers ' hands: he goes where cheaper loans. If you consider a mortgage refinance loan, the best offers belong to the industry leaders:

  • Savings Bank – 10-12%
  • VTB -24 – a 9.7%
  • Gazprombank – 9.2 percent
  • ROSBANK – 8.7 per cent
  • The Bank of Russia – 11.5% of

In 2018 in connection with a new wave of demand for property and growth performance of the economy in the country expected an increase in new proposals.

The Deduction when refinancing

Tax deduction-tax refund on the income of individuals, who previously paid by the employer in the form of personal income tax. Its rate is 13%. The law providescases where a citizen can get the money back. The refinancing of the mortgage loan permit the use of such social guarantees as the maternity capital and a tax deduction if they have not been used during the initial design of the mortgage.

If you plan to receive a tax deduction, you must notify the credit Manager, as this should show in the Bank contract.

refinance mortgage loan best deals

The Maximum amount of deduction – 260,000. There are requirements of project cost: the price must not exceed 2 million rubles. The amount of the deduction allocated to the year. If within 1 calendar year are not used the entire amount at the beginning of next year, the recipient must apply to the tax and getting the remaining part. The return is in two ways:

  1. Transfer to a Bank account in favour of the repayment of the mortgage.
  2. Issuance of the notice of the tax to the accounting Department at the place of work of the applicant. In this case, the money is not returned and the applicant's income are exempt from personal income tax in the amount entitlement deduction.

Conclusion

When you receive a mortgage every person should look far ahead and to make an objective analysis of own revenues. Risks accompany every step of the way. In this case you should use the services of trusted insurance companies.

If the benefits of refinancing are obvious, but the Bank refuses, they should go to another Bank. But the mass interest in refinancing is forcing these companies to reconsider their approach. According to their customers, some are not ready to give customers and the competitors wish to discuss the new loan terms. The fundamental change is unlikely to count, but there is a theoretical way to simplify some of the indicators.


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BE: https://tostpost.com/be/f-nansy/14374-ref-nansavanne-patechnaga-kredytu-movy-lepshyya-prapanovy.html

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ES: https://tostpost.com/es/finanzas/14384-la-refinanciaci-n-de-la-hipoteca-las-condiciones-las-mejores-ofertas-d.html

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ZH: https://tostpost.com/zh/finance/8801-refinance-mortgage-loan-the-best-deals.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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