Mortgage or rental housing?
Mortgage or rent?
Actual and exciting question for many citizens of our country: to buy a house on credit or rent. Of course, renting an apartment is more profitable for monthly payments, but on the other hand, what's next? Constant life in moving, infringement of rights, possible quarrels with the owners of real estate and unsettled life. Monthly fee to a stranger who is allowed to live on their living space. So it turns out that the apparent profitability of leasing is a utopia. No independent action in a rented apartment can not be done. Connecting to cable or Internet, home appliances, installing furniture, or even buying an animal - all this only with the consent of the owner. If the owner does not agree with something, it causes some discomfort.
Mortgage or rent? Living in a rented apartment, you have to put up with the arrival of the hosts on a visit, this often happens at inconvenient times for you or when you are not at home.It is unpleasant to realize that someone is digging into personal things. Or it happens that the owner stores in such an apartment old and unnecessary things that it is a pity to send in the garbage bin, for example, old equipment, boxes and the like. He does not care at all that the people living there also need living space. And one day, the owners generally can sell an apartment and again you need to look for housing and move. And this is a lot of nerves and certain costs. Therefore it is worth thinking about a loan for real estate.
Mortgage or rent? Naturally, the mortgage will cost more than a simple lease. But banks offer various loan conditions, there are quite a few options. The amounts of payments are always fixed and the person, buying his house, always knows when and how much he will have to pay. A rent can raise at any time or even ask to move out of the apartment. It is much easier to plan a family budget with a mortgage, it’s not necessary to think that the amount of payments will rise next month.
Thanks to this loan, you now become the owner of the apartment. Now you don’t have to make excuses to strangers, you can do any repairs, build in equipment and start a favorite animal.Of course, the apartment is a mortgage loan, but this is temporary, until the mortgage is fully repaid, which can be repaid even earlier, if possible. Considering that rent never ends. A subsequently purchased apartment will remain in full your property, and a legacy to your children and grandchildren.
At first glance, it seems that the mortgage is unprofitable. But this is not the case; now it is possible to choose housing at a cost, by area, in short, fully meeting the requirements of the future owner. Bank employees, in accordance with these requirements, will immediately offer several options for loans that are beneficial for the purchase of housing. Carefully read the terms of issuing such a loan and provide the bank with all the necessary documents. And then there will be no problems with the payment of a mortgage.
A huge mistake that many residents of rented apartments make is to live in rent and save for their own housing. In this case, you have to limit yourself in everything, to save on everything. It is impossible in this case to forget about inflation, which can "eat" up to 40% of savings. You need to worry about the constant increase in housing prices, both primary and secondary.Buying an apartment on credit, you can insure yourself against the last unpleasant factor.
Mortgage or rent? Mortgage, of course, is not a cheap pleasure, but, if we look at everything in detail, such a loan is much more profitable than renting someone else’s housing. It is better to pay for property than to strangers for living in their apartments. Living in your own home is much nicer and easier.
Savings on rental housing - is it real?
Savings on rental housing - is it real?
Today, many rent housing. This is a very convenient service. The reasons for renting an apartment can be different: the desire to live separately, housing in another city, closer to work, a young family, and the like. Naturally, the rental price is different and I want to save a little on it. There are several factors that help to save on the rental of real estate.
Savings on rental housing - is it real?
- The first thing to pay attention to is the location, type and condition of the house. In the center of the city housing is always much more expensive. Therefore, you should choose real estate in the outlying areas, they are called sleeping. At the same time, in such areas the infrastructure is well developed, various shops, stops, parking places are located, as a rule, it has its own polyclinics and pharmacies.Even in the sleeping areas there is no strong noise and gas pollution.
- Further, it is not unimportant that fact that apartments in houses with a small living space, such as Khrushchevka, will be cheaper. Also reduced the price of rent on the first and last floor.
- The next factor is unfurnished apartments. If you rent an empty apartment, there will be good savings. You can buy furniture cheaper, the most necessary. Then she will remain for herself.
- Another option to save on rent, rent an apartment without intermediaries. In this case, the commission agent is not paid. But the search for an apartment may be delayed. But there is a nuance, you should protect yourself as much as possible from various frauds (financial and real estate).
- If, nevertheless, a realtor is hired, then an apartment can be picked up as quickly as possible. But it is necessary to negotiate with him all the amounts of payments and the limit of rent. In some cases, such agents make concessions and reduce their commissions. Can make a discount.
- There is the option of renting an apartment in barter. For example, looking after and caring for a lonely grandmother, go shopping, buying food for her. In such apartments mainly rent rooms.Also, sometimes you can rent a room in an apartment for the provision of training services, such as programming. There are owners rent an apartment seasonally, for payment of utilities and care for housing, leaving for spring-summer to the country. Or, on the contrary, for a warm period of time you can save money by renting a house outside the city, it will cost much cheaper than housing in the city.
Savings on rental housing - is it real? There are many options, you need only a serious approach and patience, then everything will definitely work out.
Which bank is better to take a mortgage?
Currently, most banking institutions offer a long-term mortgage, the maturity of which is up to 30 years. When concluding such a contract, it is advisable to choose the most optimal conditions and payment scheme. That is why many potential customers have a question: which bank is better to take a mortgage? When choosing a bank for processing mortgage lending procedures, many potential clients choose the banking organization that takes the lowest interest on the loan. Of course, this is one of the most important parameters, but it is still not decisive. Look at the same consumer loans where it is more profitable to take the money.
- To choose the optimal mortgage loan and decide which bank is better to take a mortgage, it is worth paying attention to the so-called loan rate, which in addition to fixed interest also includes various commissions, various payments and various fees.
- Very often in many banks that differ in the minimum interest rates on the loan, additional commissions and fees are so high that they exceed even similar rates in other banks with higher interest rates.
- To determine for yourself which bank is better to take a mortgage, it is also worth paying attention to the requirements that the bank makes directly to the applicant, since to a potential borrower. As a rule, those banks that provide relatively favorable terms to borrowers place much higher requirements on them.
- These requirements can include the age limit of the client, the length of his work experience, the amount of officially declared income and past credit histories.Therefore, all the requirements of the bank to the client must be clarified in advance.
- Also, when consulting on mortgage lending, it is necessary to clarify the list of documents that must be provided for a mortgage loan.
- In addition, if necessary, income certificates also need to specify its format, since some banks require the form of personal income tax, others in their internal format, and others - in an arbitrary format.
- In addition to the highlights, customer service quality can also be a decisive factor when choosing a bank for mortgage lending. Indicators of quality of service include the presence of a developed network of branches or branches of the bank, their geographical proximity, convenient work schedule, as well as the courtesy and efficiency of the work of employees.
- As recommended by experts, before entering into a contract with a bank, you should carefully examine the feedback from real customers and, although they are sometimes not always objective, they give an overview of the bank itself and its employees. Such information can be obtained from various online forums devoted to mortgage lending, as well as on specialized subject sites.
- For some customers, it is very important that the bank has a developed network of branches and extensive experience in the field of mortgage lending. This is quite logical, but some developing credit organizations that have relatively little experience in mortgage lending and have more flexible conditions and an individual approach to the client.
- In addition, in order to develop their own customer base, such organizations can attract customers with various bonuses and benefits. It is undeniable that every client has the right to independently choose a credit organization.
- But still you should not make hasty conclusions, it would be much more correct to visit several institutions involved in mortgage lending. In this case, the potential client will have a more complete picture of various credit conditions, and accordingly, a wider choice of the optimal lender.
How to calculate a mortgage?
How to calculate a mortgage?
Every year, despite the impressive volume of housing construction, the housing problem continues to worsen. The cost of real estate is very high and continues to grow steadily.This is especially noticeable in large settlements, so that not every young family can afford to purchase an apartment.
- As one of the options for the possibility of acquiring housing, is a mortgage loan. That is why mortgage lending has become very popular in our country. Since having issued a mortgage loan, a person actually becomes the owner of the apartment and has the full right to live in it, and monthly payments on a mortgage loan are still much more affordable than paying the full cost of housing. That is why the question arises how to calculate the mortgage so that the monthly payments are as affordable as possible and do not hit the family budget.
- One option is to bypass all credit organizations and banks engaged in mortgage lending and compare all the conditions for obtaining a mortgage loan. But technologies continue to develop steadily, and in order to find out the most favorable conditions for obtaining a mortgage loan, as well as to get comprehensive answers to interesting questions, it is not necessary today to bypass all banks.
- In order to calculate the mortgage, it is enough to use Internet resources, visit various banks' websites and learn from the first sources all proposals relating to mortgage lending. Very effective means for calculating mortgage on-line at many sites of banks there are special loan calculators that allow potential customers to calculate directly the amount of the contribution, the costs associated with obtaining a loan, as well as the amount of monthly payments on the loan. As a rule, an online credit calculator is a small interactive table in which various parameters are entered, for example, the value of the property, the down payment amount, and the loan period. After that, the calculation of the entire loan amount is performed, when you click on the virtual button. As mentioned above, in order to obtain information on loan amounts, you need to know the exact price of the property, as well as the period for which the loan is issued. Depending on the size of the down payment, the loan term and other parameters, interest and other payments are automatically calculated.
- For those who plan to make not fixed, but certain mortgage payments, banks offer a special repayment scheme. Moreover, when choosing values, banks offer several options for repaying a loan. One of the schemes is the repayment of a loan in fixed amounts throughout the entire loan period. In this case, interest on the loan will be charged on the loan balance. One of the advantages of such a scheme is the lowest level of total overpayment. The disadvantage of this scheme is that the initial loan repayment amounts are much higher than the remaining ones, which is not always acceptable to potential customers.
- The second repayment scheme, on the other hand, involves fixed monthly payments throughout the entire loan period. This scheme of payments on the loan is also called annuity. In some cases it is very convenient, because the client always knows how much money needs to be deposited as payment on the loan. The main disadvantage of this scheme is the relatively high level of overpayment. That is why many customers go to such conditions very reluctantly.
- In turn, many banks use the underwriting system when calculating the stated loan amount, i.e. when the calculation of the client's solvency is based on a number of parameters, which includes the client's age, his previous credit histories, the amount of his actual income and expenses, the presence of dependents, etc. As a rule, if the client wants to issue a loan according to the classical scheme, the bank may offer him credit for a lower amount. The fact is that the underwriting system takes into account the maximum payment on schedule. Therefore, even bona fide clients often do not have the right to choose and they have to agree to the conditions of the bank.
- On many official banking sites, you can use not only the loan calculator, but also the procedure for applying for a loan. To do this, simply fill out the form online and indicate your contacts, for example, phone number or email address. In case of a positive decision (or in case of refusal), a bank employee contacts you and tells you the results of the decision. Also, the results of consideration of the application can come in the form of SMS or emails to the email address.
With the help of such electronic services, many banks seek to attract the largest possible number of potential customers without increasing the burden on their branches.