Refinance

In countries wherefinancing mortgage has a long history, than in Russia, refinancing widely practised. And this operation has become profitable, with the difference in interest rates of old and new loan tenth of a percent. In our country refinancing becomes effective when the difference lending rates by 2-3%, as well as obtaining a new mortgage loan entails considerable additional expense.

You can avoid a substantial part of the costs, if exercise refinancing in the same bank that issued the original mortgage loan. But banks arefinancingvery reluctant to lower interest rates on mortgage agreements concluded earlier, as it reduces their income from mortgage lending operations. You can try to get in another bank decision on extradition mortgage at a lower rate and present it to its creditor banks as an argument for changes in credit conditions.

In the event of a change in the lender refinancing, borrowers arefinancingfaced with many challenges. First, therefinancingmay be additional costs in the form of bank charges (credit for reviewing applications for opening and maintaining a loan account, for issuing credit, etc.). Secondly, will have to undergo a procedurefinancingto re-evaluate its housing and mortgage insurance, because every mortgage bank is working with its partners, appraisers and insurers. And thirdly, it should be borne in mind that mortgage requirements for housing in different banks arefinancingdifferent, and the housing, which has been approved and prokreditovano one bank may be rejected by others.

Regardless of whether the change whether refinancing-bank lender or not, the borrower will have to bear the cost of refinancing mortgage and notary certificate transaction.

Chapter 7 of the Law «On mortgage» said: «property mortgaged on a treaty on mortgage in the enforcement of any default (prior mortgage ), may be granted bail in the enforcement of another undertaking to... same or a mortgagee (subsequent mortgage)». That is, under the legislation, mortgage borrower has the right to re-mortgage housing mortgage that meets the objectives refinancing. But in practice, borrowers arefinancingforced to act on the scheme: first, to repay a loan from the original creditor — and then withdraw the charges collateralized with housing — and then get a new mortgage and lay new housing lender. If the loan is an important part of the cost of housing is justified. But when the loan amount does not exceed 50% of the value of mortgage housing, the application of such schemes cost to the borrower only explains the lack of established mechanisms refinancing.

refinancingProgramme for a particular region can be selected in the «Mortgage program».

If no program refinancingBank does not come, then to repay the original mortgage bezzalogovye will have to borrow short-term loans and then repay them ahead of time by a new mortgage. The rates on consumer credit at the 5-10% higher than on mortgage and the difference is palpable, with additional costs refinancing. This could have been avoided if the borrower is still in the possession of any property that can lay to obtain a new mortgage.

I another option refinancing — is to use the services mortgage broker . In this case, a new mortgage loan can be obtained prior to the repayment of old. A mortgage broker stands guarantor to the bank issuing a new mortgage, for a period of re-housing mortgages. The cost of mortgage broker is from 10000 to 60000 rubles. This amount is quickly recouped if the savings on monthly mortgage payments on the loan amount to 4000-6000 rubles.

Easy-to-use refinancingmechanisms mortgage just beginning to take shape in Russia. But not far off the day when refinancingbecome normal practice, the services of the borrower will be refinancingmany options and he did not once they take advantage of a long term mortgage lending.