Loan repayment

Ways Repayment

Method repayment mortgage includes the frequency of payments, the timing and amount of payments, as well as form of payment — cash, non-cash or pr 

In the case mortgage payments , normally carried out every month, often determined by the creditor pay period, such as 15 — on the 20 th — e number of months. For borrowers, violating the deadline of payment, may apply penalties on the conditions of the loan agreement.

Size of payments determined payment schedule, which is usually issued to the borrower immediately after signing the loan agreement. Creditors may require an exact match (until kopecks) lists the amount and than that specified in the schedule of payments. And underpayment and overpayment can be viewed as failure creditor borrower mortgage obligations under the treaty, risking penalties or even demand early repayment .

The form can be cash payments: when the borrower is making money via cash bank loan to your account. In this case, the borrower should be remembered that not all banks are working night and the cashier’s office that charges can not be implemented on weekends and holidays.

In the event that cash payments are made, it could be the transfer of money from the account of the borrower, to open in a bank account at the bank creditor. It should be borne in mind that the inter-bank transfers are a paid service and that their implementation requires time (1-3 days). To reduce costs time and money transmitters, the borrower can open your account directly to the creditor banks.

Another option cashless payments on the loan — is translated into account the monthly loan repayment of wages before it is received. In this case, the borrower must write a statement addressed to the head of the company, where he works, and agree on the details of the transfer of accounting businesses.

Early repayment of credit

Most mortgage programs provides for the early repayment of the loan with a minimum stay (ban) for the repayment of about 6 months. But at the same time, nearly all mortgage banks impose a certain minimum amount of early repayment (for example, 10000 rub.). Only accumulated this minimum amount, the borrower may file an application for creditor early repayment of credit . The statement is written in the form of creditor banks.

Early as possible to repay the entire mortgage, and its part. In the case of partial early repayment , the borrower has the right to either reduce the amount of monthly payments for the remainder of the loan, either to leave the size of the previous payments, and reduced himself crediting period. Reducing the amount of monthly payment reduces the burden on the family budget, as well as provides an opportunity to obtain new credit. The reduction period of loan significantly reduces the amount of overpayment for housing borrower acquired under the mortgage. What’s more profitable — solves the borrower. Following the early repayment of the loan, the bank lender-borrower must provide a new payment schedule.

If fully early repayment , the borrower must seek creditor banks in the exact amount of credit and interest on it at the projected full repayment. Following the implementation of all necessary payments, the borrower must register in the establishment of Justice cessation of mortgages, that is, withdrawal from the acquired collateral charge of housing. Finally, the borrower must notify the full repayment of this credit insurance company to reclaim money paid for but unused insurance period.

Refinancing

Refinancing — a loan with a lower interest rate to repay the loan with a higher bid made earlier. In the face of competition mortgage banks, the borrower can successfully use this tool to reduce overpayments for housing, acquired on the mortgage. Naturally, when assessing the advantages of re operation must take into account the additional costs associated with obtaining a new loan.