refinance mortgage does not differ from similar operations in respect of any other loan.This procedure is to obtain a credit institution the amount of money on more favorable terms for the repayment of existing obligations.Thus the original loan may be taken in the same bank, or other financial institutions.
But not all lenders to offer mortgage refinancing.Banks that are engaged in such operations in the Russian Federation, represented by VTB 24 and Sberbank.While the refinancing of other operations (such as car loan or consumer credit) can be found in many financial institutions.
mortgage refinancing is that the new loan is made, the sum of which is extinguished previous debt.Pledge of property re-register on the new lender and the borrower repays the loan has a new credit institution.Typically, this operation is performed, if there is an opportunity to reduce interest rates, maturities or change the currency of payment.For example, the rate on a mortgage in the currency is almost always lower than in rubles.However, wages are paid in Russian currency.With the growth of, for example, the dollar increased loan burden on the family budget, as you need a large amount in rubles converted into dollars.Therefore it is sometimes advantageous to renew the loan in rubles.It may also be interesting to reissue credit on a longer term.VTB 24 in this regard, perhaps the record, offering a maximum period of fifty years.
better begin refinancing mortgages in the bank, where it was originally made out, since in a number of loan agreements have penalties for early repayment of debt or a moratorium on the early termination of obligations.If the bank can not provide a service for on-lending, we can go to another financial institution.Thus it is necessary to calculate how much it will cost the design of the new loan, as well as to determine the interest rate differential.Experts believe that the refinancing is inappropriate if the new rate is different from the previous one by less than two percent.
Refinancing mortgages issued in the same way as a standard loan.Natural or legal person submits an application and the lender checks the current solvency.If a person's credit history in the present delay in the initial loan, then another bank it may refuse to lending to, even if it has a sufficiently high level of income.
most interesting option for any borrower is refinancing rate.Mortgages in this regard is quite "cheap" financial instrument, because the stakes are up about 12.5 percent (for example, the Savings Bank).This is due to large amounts of loans and long-term maturity.While the rates, for example, on consumer credit transactions may be 18-20 percent or more.
