What is the mortgage

What is mortgage

Mortgage  — is secured with real estate to ensure obligations to the creditor. When mortgage lending borrower receives a loan to buy real estate or other purposes. His creditor was owed to the repayment and guarantee the implementation of this commitment mortgages. In doing so, you can buy and lay not only housing, but other real estate — land, car, yacht, etc. Real estate acquired through mortgage, the borrower’s credit is the property since the acquisition. The term mortgage in Russia usually applied in connection with the decision of housing problems.

Most widespread use of  mortgage in Russia  — is buying an apartment on credit. Provides a while as a rule, once again purchased housing, and although you can lay the existing owned apartment. Mortgage loans are issued by banks and credit facilities from all different. At the state level in Russia mortgage finds support in the form of legislation developed by the mortgage, as well as specially established state mortgage agency.

Registration mortgages — multistage procedure, which includes the collection of documents, the passage of bank credit committee, search for suitable housing, its evaluation and insurance, the conclusion of a treaty mortgage . At this difficult path could help mortgage broker. The same agency may need assistance in purchasing an apartment real estate loans.

When mortgage received and purchased housing, it’s time «pay». Loan repayment can work both cash and cashless so, or in strictly certain days or at any day of the month — those conditions are determined by creditor banks. The possibility of early repayment of the loan is defined in the same mortgage bank.

Advantages and disadvantages of mortgage

The main advantage mortgage is that, instead of years of accumulating the required amount for purchase of housing, there is an opportunity now to live in a new apartment (or house). In doing so, housing, acquired on  mortgage , once the property the borrower is  mortgage . The new housing can register borrower and members of his family. Security is provided by insurance operations risk losing ownership of the apartment and its damage, as well as loss of borrower benefits. In addition, the mortgage there are still a number of «advantages»: the borrower mortgage granted property tax deduction, which effectively reduces the interest rate on mortgage through that the borrower will not pay income tax from the amount spent on the purchase of housing and mortgage interest on  ; long-term loan makes payments on mortgage not too large and, consequently, not too onerous. For certain categories of persons pleasant surprise could prove their existence in the region social mortgage.

The most significant shortcoming mortgage is the so-called «overpayment» for the apartment, which can reach 100 percent or more. «Overpayment» on  mortgage includes interest on mortgage loans and the annual amount of compulsory insurance. Moreover, in the process of acquiring mortgage borrower still has to bear some additional costs, such as payment services company and the estimated notary, bank charges for consideration of an application for credit, a fee for maintenance loan account, etc. Overhead in the aggregate may reach 10% down payment for the purchase of housing.

Another «negative» mortgage  — a large number of claims mortgage banks to borrowers: documentary proof of income, availability of registration and Russian citizenship, a certain length of service in one place, the opportunity to provide guarantors on the loan and so e. 

Find the perfect compromise between the advantages and disadvantages mortgage each to be alone. Today, the choice of banks and their mortgage programs quite wide, and anyone who wants to solve its housing problem through mortgage can choose a worthy partner.

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Loan Terms

Registration of mortgage

Buying an apartment

Tax deductions

Loan repayment