A housing issue for many people, especially foryoung families, remains the most acute. Few people have sufficient funds to purchase their own housing without resorting to the services of a bank. Therefore, for many, to improve their living conditions, mortgage becomes the way out. What percentage will have to be paid depends on the type of mortgage lending and the conditions of a particular lending institution.
What you should know before contacting the bank
As a rule, each person firstlooks at the interest rate, and only then chooses a loan that satisfies the timing and amount of the down payment. But a low mortgage interest may hide the main conditions imposed by the bank. These may include commissions and various fees. Considering that credit institutions bypass these conditions in promotions to attract customers, you should carefully read the agreement before concluding a transaction.
How to get a mortgage with low rates
- If the borrower has previously applied to a specificcredit institution and has established itself as a reliable client, he can count on more favorable conditions. The bank is ready to provide certain discounts to a person, in whose reliability and solvency he is sure. Such cooperation is beneficial to both the client and the bank, since the first one can always count on certain discounts, and the second one acquires a regular customer.
- Discounts or benefits can be given to an employee of a company that is a corporate client of the bank.
- If the client purchases a home from a developer who is a partner of the bank, certain discounts may also be granted for a mortgage loan.
- The lowest mortgage interest cancount the client who is ready at the request of the bank as a down payment to make up to 30% of the total value of the property. This indicates the client's solvency, and the bank itself risks a smaller amount. Therefore, the lender is ready to reduce the interest rate. But, of course, the borrower must submit a document confirming its solvency.
Types of mortgage programs
Today there are many programsmortgage lending offered by various banks. Preference is given to those who have the lowest mortgage interest. But not all conditions are profitable, as expected. For example, one of the banks is ready to provide a mortgage loan for a period of 30 years, the down payment of which is 10% of the total value of the housing being purchased. The rate in this case will be approximately 13%. If the loan period is reduced to 10 years and 50% of the property value is paid as a down payment, then the rate will already be just under 11%.
You can familiarize yourself with the types of mortgage lending programs directly at the bank where you plan to take a loan.
What is the most profitable mortgage
To attract as many customers as possible,Some banks offer mortgages with no down payment. At the moment it is considered that this is the most profitable mortgage. But to get it there is a certain number of requirements.
- The borrower must own valuable property that can be left as security when you make a mortgage loan.
- The average income of a borrower applying for this type of mortgage loan should be higher than when making a mortgage with an initial payment.
- The real estate acquired by the borrower must relate to the secondary market.
If all conditions are met, the borrower can expect to receive a mortgage without a down payment.
But you should also consider some features.this type of lending. To insure their risks, the bank may additionally offer to arrange insurance for the acquired real estate, as well as life and health. Thus, choosing a profitable mortgage without a down payment, you need to be prepared for the stringent requirements of the credit institution.
In conclusion, if takenthe decision to take a mortgage should be very carefully and carefully examine all the proposed options. Then the chance to find a profitable loan and the lowest mortgage interest will be high.
