Borrowers who took out a mortgage several years ago are now at a very disadvantage. Indeed, over the past five years, mortgage interest rates have decreased from 14-16% to 11-13%. On the other hand, such borrowers always have the opportunity to revise the terms of lending and achieve a reduction in interest rates on the loan.
It is necessary
- - loan agreement;
- - certificate of the balance of debt;
- - extract from the Unified State Register;
- - documents confirming income;
- - application for refinancing.
Instructions
Step 1
It is possible to reduce interest rates on existing mortgages through refinancing. It allows the borrower to get a new loan to pay off the old mortgage. In the future, he is left to pay on a new loan with lower interest rates.
Step 2
You can refinance your mortgage at your bank, or contact a third-party organization. The possibility of revising the terms of the loan agreement must be provided for in the agreement. It should be noted that banks rarely agree to revise the interest rate, only in cases where they do not want to lose a bona fide client. But if your bank has refused, you can safely go to another.
Step 3
Refinancing a mortgage is not much different from obtaining a primary loan. The bank is provided with an application for refinancing, a certificate of income 2-NDFL, a loan agreement, an account statement, a statement of the remaining debt, a statement of an extract from the USRR, etc. The list of documents may vary depending on the bank.
Step 4
If approved, the bank proceeds with the refinancing procedure. He provides the borrower with a loan for early repayment. In this case, the collateral is removed and reissued in favor of the bank. It should be noted that for the period of re-registration of collateral, many banks set an increased rate.
Step 5
Before deciding on refinancing, you need to carefully calculate the economic feasibility of this step. It is worth taking into account not only the interest rate, but also additional payments and commissions with which refinancing is associated. This is the withdrawal and re-registration of collateral, consideration of a loan application, appraisal of a real estate object, etc. In general, it is considered that a mortgage should be refinanced if the balance of the principal debt is more than 30% and until the five-year repayment period on it. This is due to the fact that most of the mortgage interest payments are made in the first years.
Step 6
For those who are just going to get a mortgage, there are several ways to lower the future interest rate. So, it is worth taking a loan from a bank where you receive a salary or have a deposit. For such clients, banks offer reduced interest rates. The size of the rates is influenced by the terms of the loan (the shorter the loan, the more profitable it is), as well as the size of the down payment.
