The method outlined below allows you to defer the first mortgage payments for a new building for a period of 1 to 5 months. This can be useful when investing in new buildings in order to reduce investments and increase interest rates.
How should the process of purchasing an apartment proceed according to Federal Law 214 with a mortgage:
- You book an apartment (this step may be missing). As a rule, by depositing a small amount of money you can secure an apartment and maintain the conditions for purchasing an apartment for 1-2 weeks.
- You enter into an agreement with the developer
- Make your down payment on your mortgage. Usually it is 10-20% of the cost of the apartment.
- You go to the bank and sign a mortgage agreement.
- Bring the mortgage agreement to the developer
- The shared construction agreement is sent for registration to the Federal Service for State Registration of Cadastre and Cartography or, otherwise, to Rosreestr.
- After no more than 18 days, the agreement is registered, after which you need to come to the bank and finally approve the payment schedule.
- On the same day, the bank transfers money to the developer and it is from this day that you begin to pay the mortgage.
That is, if we want to avoid paying the first mortgage payments for as long as possible, the task comes down to stretching out these 6 steps as much as possible. Since, until the bank transfers money to the developer, you do not owe him anything and you do not have to pay money for the mortgage, and he will transfer the money only when all other documents are in order.
So, point by point, where to tighten what and how:
Trip to the bank (2 weeks)
After the agreement with the developers is concluded, you need to go to the bank and sign a preliminary mortgage agreement. Often, the equity participation agreement specifies specific deadlines within which you need to come to the bank; if they are specified, then we arrive on the last day
Here there is an opportunity to stretch the rubber a little more by saying that you will not be able to go to the bank within the specified time frame; for example, you can hide behind an emergency business trip. As a rule, the developer meets you halfway without any questions and waits for several weeks while you settle your affairs and go to the bank.
How to reduce mortgage payments?
After the borrower has taken out a loan and issued a mortgage, a month later the first payment of the established payment occurs. From this date on, you can consider alternative options to reduce your mortgage payments.
Types of payments for mortgage lending
The size of the fees always depends on the type of loan the borrower took out. There are several most profitable types of payment:
- Demarcated or otherwise called differentiated . Taking into account high inflation, this option is one of the most profitable. When calculating interest, the balance of the principal debt on the loan is taken into account. Therefore, the borrower pays less interest year after year. The main advantage of this type is the minimum overpayment on the loan. There are also disadvantages. This type of interest-based lending requires a large down payment.
- Annuity. This is a type of payment in which the loan amount and interest on it are paid gradually in the same amount. In this option, most of the amount is interest on the entire loan. In this case, the amount of the first and last installment will be the same.
Ways to reduce your mortgage payment
One popular way to reduce the loan amount is refinancing .
This term refers to the process of obtaining another loan to pay off an existing loan, but on more favorable terms. In other words, this is a new loan to pay off an old one.
Many people use it to reduce their mortgage payments. This option is beneficial if the new loan has a lower interest rate than the current one. But be prepared for the fact that the bank will agree to exchange your mortgage only if you were a bona fide borrower and did not make any delays on the loan.
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If the borrower decides to refinance , then he can take out a new loan from another bank.
Before making a decision, the borrower must find out whether it will be profitable or not. If he receives only a 1-3 percent reduction in the rate, spending more time and effort, then this operation will not be very profitable.
Another condition for successful refinancing is the loan repayment period. If it increases, then the only advantage of this operation will be a reduction in the monthly premium.
How to save money when taking out a mortgage loan?
During the mortgage lending process, the borrower can save a lot on insurance . This can be done by choosing an insurance company not on the recommendation of the bank, but any other of your choice, where the conditions are more favorable.
Another option is a property deduction . With it, you can return 13 percent of the amounts paid when purchasing a home (but not more than two million rubles).
The return process is not simple - it requires registration and submission of many documents to the tax authority and only applies to the working population with official wages.
It is worth considering that when refinancing, the borrower loses the right to a tax deduction, because the new loan will be used as a payment for the old loan, and not for the purchase of property.
To save money, it is important to consider the loan repayment period . A shorter loan repayment period will allow you to get more benefits and significantly lower interest overpayments.
Terms of mortgage programs in Sberbank
Sberbank mortgages are extremely diverse. The product line includes a huge number of programs. The choice among them is determined primarily by the goals pursued by the borrower when submitting an application. The current conditions in 2020 are described below for the main programs.
- Promotion for new buildings. This program is suitable for those who wish to purchase an apartment with a Sberbank mortgage in a building under construction or recently commissioned. An important condition is the purchase of real estate from the developer. The rate under the program starts from 7.4% per annum. The maximum loan term is 30 years.
- Purchase of finished housing. The program is designed for the purchase of various real estate on the secondary market. The main difference from the previous one is the interest rate - the minimum is 8.9% per annum.
- Mortgage plus maternity capital. This program is for those who plan to use a state subsidy for a second child as a down payment on a Sberbank mortgage. The rate will be set at 8.9% per annum, and the money received will have to be returned within a maximum of 30 years.
- Construction of a residential building. Using this program, a Sberbank client can receive funds for work on individual housing construction. In this case, you will have to pay the bank for the use of funds at least 10% per annum. The loan is issued for a period of up to 30 years.
- Country estate. For those who decide to purchase or build a dacha, as well as other similar buildings, Sberbank offers an interest rate of 9.5% per annum.
Military personnel participating in the individual savings system can take out a mortgage on an apartment from Sberbank under the Military Mortgage program. Under this program you can purchase both a new apartment and real estate on the secondary market. The rate is set at 9.5% per annum.
Regardless of which program the mortgage application is submitted for, the future borrower will have to submit a certain package of documents . In most cases it includes:
- questionnaire;
- passport;
- income certificate;
- documents for real estate purchased with borrowed funds and serving as collateral;
- document confirming payment of the down payment.
The list of Sberbank mortgage programs is very wide. When applying for those that have unique conditions, specialists may require additional documents. Moreover, in some cases the borrower will have to document any status. If the requested documents are not provided, the bank has the right to refuse to issue a mortgage to the applicant.
How to assess whether it is worth taking a mortgage?
Despite the fact that there are a number of doubts about mortgage lending, it is better to approach the issue with rational reasoning. You shouldn’t blindly fall for the tempting slogans of banks and, at the same time, overload yourself with unnecessary fears.
There is no solution for all situations, since each person is in different life circumstances and with different income levels. It is worth considering that a mortgage is a long-term loan issued for 5 to 30 years. In turn, during this time a lot can change, both for the better and for the opposite. To be sure whether to take out a mortgage and not become a debtor to the bank, you should sensibly evaluate the following points:
- Permanence of the workplace;
- A stable level of income that allows you to easily take out a mortgage;
- The expected type of housing to be purchased and its cost;
- The amount of monthly mortgage payments;
- Availability of the amount for the first payment;
- The state of your own health and that of your loved ones;
- Availability of residence and additional expenses;
- Plans for future major purchases and family expansion;
- A “safety cushion” in case your financial situation worsens.
Consideration of these issues is necessary because, having taken out a mortgage loan, you will have to pay the bank a set amount monthly for a long time, according to the payment schedule. Therefore, there should be enough money not only for contributions, but also for daily expenses and life in general.
If the assessment on all points is positive, then you can then familiarize yourself with the offers on the real estate market and the conditions of banks.
Is it worth taking out a mortgage in 2020 due to the upcoming default?
Recently, there has been speculation in the media that a default is possible in the foreseeable future. Such reasoning is not without meaning, especially if we recall the events of 20 years ago, when in 1998 economic disasters struck Russia, one after another:
- Refusal of the government to pay on loans in treasury bonds;
- Sharp rise in the dollar exchange rate;
- The fall in the ruble exchange rate;
- Inflation jump.
The population constantly turns to such fears, especially in times when something drastic happens in the economy. For example, “Black Monday”, which brought down the Russian stock market after another round of sanctions rhetoric from the US Treasury.
Such incidents do not increase confidence in the future and, as a result, citizens who have savings tend to invest them in more reliable places. On the one hand, real estate can be a protective instrument for saving money. But this assumption is only true if the property is purchased on the market for cash and at a large discount to the average market price. The buyer saves on the purchased housing, as he buys it at a discount. And if he needs money again, he can easily sell this object and return most of the invested funds - after all, he can sell at the market price and in the exchange rate ratio that will be established in the future.
As for purchasing housing on credit, and in particular, purchasing with a mortgage, this option, even in the event of a potential default, can have completely different consequences for the person taking it. Everyone believes that with a default, mortgage payments will drop sharply and when the ruble depreciates, mortgage payments will also decrease. However, this is not true - in the event of a default or another economic crisis, the consequences may be different:
- The bank may raise mortgage interest
- A person may be fired from his job and lose sources of income
- Apartments may fall sharply in price due to falling demand
Previously, ProfiKomment magazine described a real estate forecast, from which you can take the most important information. After all, deciding whether or not to take out a mortgage means making a decision about your future strategy for many years. And for this you need to be completely confident in your own solvency and in the dynamics of the real estate market.
Is it worth taking out a mortgage and is it profitable?
Before answering this question, it is necessary to define the term “profitable”. It can be interpreted from two points of view:
1. Profitability of financial investments.
At first glance, everything is extremely clear. A mortgage loan carries interest and in any case there will be an overpayment. And the greater it is, the longer the contract is valid. However, with the right approach, you can minimize this effect or turn it to your advantage. For example,
- Pay off your mortgage early;
- Make the maximum possible down payment;
- Find housing below market value;
- Rent out the purchased housing or part of it.
2. Profitability, such as the opportunity to purchase your own home.
By the way, most people come to the mortgage option because they cannot afford to pay the full cost of the apartment in one payment. As a result, despite some overpayment on finances, a mortgage is a real opportunity to become the owner of your own home without sufficient funds. Moreover, having moved into a new apartment, the costs of renting the previous residential premises will disappear, registration at the place of residence will appear and a way to realize the benefits provided. For example, maternity capital funds and government subsidies.
Answering the main question of the topic, is it worth taking out a mortgage , we note that YES . If no more than 40% of the salary will be spent on monthly payments and there are no prerequisites for a deterioration in the financial situation. And also there are funds for a down payment and there is an exact determination of where to live for the next few years.
Advantages of mortgage lending.
It is worth noting that a number of citizens regard mortgages as a kind of “bondage”. Such a judgment arises due to an overestimation of one’s capabilities and entering into credit relations on obviously aggravating conditions. At the stage when the question arose whether it was worth taking out a mortgage , they were unable to predict their financial situation. As a result, giving 90% of their income as monthly payments, they were deprived of a normal lifestyle and denied themselves many things in order to repay the loan.
Of course, banks do not engage in charity and build relationships with clients on favorable terms without exception. In turn, there is overpayment and other negative aspects. However, all the basic requirements are specified in the contract and can be clarified by the borrower before signing it. Only if you agree with all points should you sign.
Although people have different opinions about a mortgage, it undoubtedly has a number of advantages:
- It is not necessary to have the full amount to purchase housing.
- You can move into the residential premises soon after signing the contract.
- Registration of ownership and registration in a mortgaged apartment.
- Providing deferments on monthly contributions.
- Low interest rates.
- Availability of mortgage programs with government support.
- Possibility to use maternity capital and other subsidies.
- Registration of tax deductions.
- Relatively fast transaction process.
- Low financial burden due to extended payment period.
- Possibility of refinancing.
As you can see, the positive aspects make buying your own apartment much more affordable. However, a lot depends on mortgage rates and your own capabilities.
