Mortgage rates. Interest mortgage

The rate mortgage — a key factor in the choice of mortgage programs. At today mortgage rates make up 6-14% on currency loans and 10-18% for loans in rubles. It’s quite a high level of rates, leading to significant overpayments acquired for housing. Over a period of 15-20 years of lending mortgage borrower can pay double the price of housing, and even more. Fortunately, Russia is gradually declining mortgage rates.

Usually banks argue percentage of mortgage individually for each issued credit, because it depends on:

Credit facility — expected to purchase an apartment or house. In the second case rate mortgage may be higher.
Real estate market — primary or secondary. By constructing a housing mortgage interest higher because of the risk that the construction will not be finished. There are mortgage programs that provide increased mortgage rate for the period of construction and percent decline in mortgage after the delivery of houses.
Confirmation forms of income . If revenue can not be confirmed officially (refer to Form 2 — NDFL), the rate mortgage can be improved to 1-2%.
Period of loan . Some banks apply the scheme: the longer term mortgage loan, the higher mortgage rate .
Initial contribution . When the initial fee is a significant part of the cost of purchased housing, the mortgage interest can be reduced.

Types of mortgage rates

The most common are fixed mortgage rates. They do not change for the duration of mortgage lending.

Besides fixed mortgage rates there floating rate mortgage . They are linked to the average interbank interest rate market. Mortgage in foreign currency tied to the London Interbank Exchange and interest mortgage on such loans described as 6% + LIBOR, 7% + LIBOR, etc. Borrower accepting credit with a floating rate mortgage, tied to LIBOR, every year in his bank learns new meaning percent mortgage, which it would pay during the year. When it comes to mortgages in rubles, the mortgage rate tied to the Moscow interbank market, referred to as MosPrime +5% and reviewed every 3 months.

There are several types of floating mortgage rates — tied to MIBOR (Moscow analogue LIBOR), to the Central Bank refinancing rate to TIBOR (Tokyo Interbank Exchange) — but they did not receive wide distribution. Floating mortgage rates tend to look more attractive than the proposed banks fixed interest mortgage. However, keep in mind that market lending rate (LIBOR, MosPrime, etc.) are prone to fluctuations and their importance to predict long-term mortgage very difficult.

Making a choice in favor of low mortgage rates, specified in the program, it is necessary to calculate the real interest mortgage , which will have to pay. To this end should take into account additional costs that accompany further mortgages and mortgage servicing. There are programs in which low mortgage rates far from being combined with the lowest interest actually paid mortgage .