housing issue for many people, especially for young families, is most acute.Few people have sufficient means to buy their own homes, without resorting to the services of the bank.Therefore, for many, to improve their living conditions, the output becomes a mortgage.What percentage would have to pay depends on the type of mortgage lending and the specific conditions of the credit institution.
What you should know before contacting the bank
As a rule, each person first looks at the interest rate, and only then choose the loan that meets the timing and amount of down payment.But low-interest mortgages may obscure the basic conditions imposed by the bank.These may include commissions and various fees.Given that, and in promotions to attract customers credit institutions sidestep these conditions prior to the conclusion of the transaction should carefully read the contract.
How to get a mortgage with low rates
There are several conditions that can help the borrower to get the lowest interest rate on the mortgage.
- If the borrower has previously applied to a specific lending institution and has established itself as a reliable client, he can count on more favorable terms.The Bank is ready to give certain discounts to the person in reliability and solvency of which he is sure.Such cooperation is beneficial to both the client and the bank, as the first can always count on a certain discount, and the second becomes a regular customer.
- discounts or exemptions can be granted an employee of the company, which is a corporate client of the bank.
- If a customer purchases a house from the developer, which is a partner of the bank for a mortgage loan can also be granted to certain discounts.
- at the lowest rate on your mortgage can expect customer who is ready at the request of the bank as a down payment to make up 30% of the total value of real estate.This indicates the client's solvency, and the bank itself runs the risk of a smaller amount.Therefore, the lender is willing to lower the interest rate.But, of course, the borrower must provide proof of his ability to pay.
types of mortgage programs
Today, there are many mortgage programs offered by various banks.Preference is given to those who have the lowest percentage of the mortgage.But not all conditions are favorable, as expected.For example, one bank is ready to provide a loan for 30 years, the initial payment is 10% of the total cost of purchased housing.The rate in this case will be approximately 13%.If the loan term reduced to 10 years, and as a down payment deposit of 50% of the property value, the rate will already be a little less than 11%.
For people with low incomes, but badly in need of housing, there are special social programs.Under such programs, responsibility for initial payment borne by the State.Depending on conditions, the amount of the first payment can be up to 40% of the cost of housing.At the same assistance from the state can count persons belonging to certain groups - young families and military personnel.They are also special programs.
With kinds of mortgage programs can be viewed directly in the bank, which is scheduled to take the credit.
What is the most profitable mortgages
To attract more customers, some banks offer mortgages with no down payment.At the moment, it is considered the most profitable mortgages.But to obtain it there is a certain number of requirements.These include:
- borrower must possess a valuable property which can be left as a deposit when you make a mortgage loan.
- average income of the borrower, making out this type of mortgage loan, should be higher than when you make a mortgage with a down payment.
- property acquired by the borrower, shall relate to the secondary market.
If all conditions are met, the borrower can expect to receive a mortgage with no down payment.
but should also take into account some features of this type of lending.To insure their risks, the bank may offer to issue additional insurance purchased property, as well as life and health.Thus, choosing the best mortgage without a down payment, to be ready for the stringent requirements of the credit institution.
In conclusion we can say that if you decide to get a mortgage, you must carefully and thoroughly examine all the proposed options.Then the chance to find a favorable loan and the lowest mortgage interest will be high.