How to choose a mortgage difference from the real estate financing programs-Today we can say with confidence that each of us has dreams of your fireplace or improve living conditions already in place. It often raises questions that need to be done, and may require us to these issues a long time. What can we improve the situation for those who want to realize their dream of today without much effort?
The fastest way to achieve a dream is to use the mortgage terms available. At present, the mortgage market offers a variety of programs that are different objectives and lending conditions of registration. Must for more ideas on mortgage lending to be told that the main difference from other species is guaranteed. Bail on mortgage refers to the acquired property and a number of programs can be the key to the property of the borrower.
Types of mortgage programs
Can be the primary mortgage program into three main groups: to buy dwellings under construction, housing already built (secondary market), the program for the reconstruction or restoration of property. The highest prevalence of and loans to purchase already built and under construction property (housing market regulations).
In addition to the Basic program of savings bank offers loan terms especially for “young family”, including maximum loan account can take account of parental income of spouses, and the first instalment is received 10% of families with children. All borrowers have the opportunity to attract borrowers and third parties of up to 3 people.
In general conditions for mortgage lending includes several basic criteria-the length of the loan and the annual interest rate, down payment and documentation for the consideration of loan request. Most of the following are credit period, which in most programs is 30 years. Do not set strict requirements for Bank deadline, the borrower chooses on its own, depending on the monthly payment required based on ability to pay.
At the time of registration of the credit offered by the Bank the borrower eligibility documentation study. Documents to apply for a personal loan, in addition to the application form and supporting documents confirming information about employment and income (income statement, and a copy of the book of job), and documents about the social situation. Based on World Bank data is the borrower qualified to determine the possible conditions of the mortgage.
And mortgage repayment schedules are divided into 2 types: differential premiums. When is the payment of the principal amount in equal monthly installments and interest on the loan is calculated on the outstanding balances. Thus, every time the size of the payment amount becomes smaller.
Annual payments include the calculation of the amount of monthly payment for using the credit provided by the contract. Here, the size of the monthly payment is the same, and reduces the load on the client as well as the first payment on the loan is less than can be reduced for early payment.
What you should know
One of the important components of mortgage loan insurance to purchase real estate and most of the borrower. The Bank, he took some risks in granting a mortgage loan, you need to ensure that the loan will be repaid regardless of circumstances that may occur with the borrower or the estate. At the same time, it is important for the Bank to make this possible with the minimum cost of the client. In this regard, to ensure that banks provide risk insurance company.
Include the most common types of insurance provided by life insurance and disability of the borrower, the property which is the subject of the mortgage (in the case of damage to or loss of full), insurance, loss of title. A full range of optional insurance depends on the borrower and the mortgage program that some banks might provide for mandatory presence.
For the final presentation on selecting mortgage program a few basic guidelines:
To select the most appropriate option, please read the terms of the program and the purposes for which the loan can be issued.
When you calculate the cost of the loan, it is important to know the effective interest rate, which includes the interest rate on loans and additional payments (e.g., insurance, commissions on loans).
Make the first instalment of the loan, the higher it is, the lower the interest rate on the loan.
It is advisable to take the mortgage with his main income.
When you use any of the types of loans it is important to maintain a good credit history and time to make all payments, that will improve your ranking to the Bank when you consider applying for a mortgage loan.