For what period is better and more profitable to take a mortgage?
Credit bondage and the problems of mortgage borrowers are often spoken about. For decades, a person is forced to give up half of his income, denying himself much. When buying a mortgage apartment at 30, it will be allowed to sell or exchange it only when the last payment is paid. Even at 10% rate in 30 years will turn into an amount 3 times the initial debt. Nevertheless, the number of people willing to apply for a mortgage is not reduced, despite the crisis, despite the difficulties. If there is a question about the appropriateness of a home loan, then it is time to understand the features of the mortgage, so it is not to be mistaken, making a decision.
Multi-million dollar debt or an investment in the future?
The average mortgage borrower is an employed person at the age of 27-30 years old who has entered into marriage and is planning to replenish the family. At this age, a career is gaining momentum and tempting prospects lie ahead, while at the same time it is difficult to postpone most of the monthly earnings to save on housing. At this moment, there is a desire to purchase their own housing and solve the problem “here and now.”
Due to the high risk of default and repayment problems, banks tightened their mortgage requirements. From the loan portfolio of banks, offers with zero installment gradually disappeared. Therefore, to apply to the bank will need to start to accumulate at least one fifth of the cost of housing. Suppose the apartment is planned to buy 2.5 million rubles. It means that the future borrower should have at least half a million available. Putting aside 20 thousand rubles a month for more than 2 years, to collect such an amount is within the power of many.
It remains to find a bank that will require a minimum of overpayment and agree on the required limit. After the interest rate dropped from 15-18% to 6-10%, the overpayment to the bank was halved. If you compare real estate prices, then, despite the fall in the market, observed in recent years, the cost fell slightly. In conditions when it is difficult to ensure stability and there is clear understanding of how to save money from inflationary depreciation, real estate remains the investment option that can generate income in any situation:
- First, having bought an apartment, you do not have to spend up to 10-30 thousand rubles per month on rent.
- Secondly, you can rent housing and pay a mortgage without much damage to your personal wallet.
In the first case, the borrower would still spend on paying for rental housing, and a competent calculation of the mortgage will not lead to a deterioration of the financial situation. In the second case, the mortgage apartment looks like a nice bonus, because after repayment the borrower acquires full rights to the property, which has little risk of depreciation. And in fact, and in another case, the borrower is only required to collect the amount for the contribution and further control the repayment process.
As a result, taking a loan of 2 million rubles for 30 years at 10% per annum, the client will overpay 4.3 million rubles to the bank. But who said that you will have to pay them yourself when you receive a rent equal to a monthly payment for renting an apartment? Even in a situation where housing is needed for a family, you save on rent. It is only necessary to correctly determine the loan period and select the optimal program.
Mortgage sentence and early release
It is unlikely that a person will think about a mortgage when there is a threat of dismissal or bankruptcy of an enterprise. Thoughts about their own housing arise in families with a stable financial situation. Making out a 30-year mortgage at the very start of a career, young borrowers have every chance to increase their income by succeeding in their professional field. Early repayment of a mortgage is more common than in other types of lending, which means life bondage is nothing more than a threat to the bold and hard.
Springboard to start
In order to collect the missing 2 million rubles, it is necessary to set aside 20 thousand rubles each for more than 8 years, and it’s not a fact that real estate does not go up in price, or there are other options for spending money . When you make a mortgage at 10% for 20 years, the payment for the month will be the same 20 thousand rubles, which fits into the budget of families with average income.
The desire to get rid of mortgage obligations and encumbrances makes it necessary to look for new sources of income, to succeed and to achieve impressive results. As a result, many mortgages are repaid during the first years of payments.
Despite self-confidence and determination to quickly pay off the creditor, you should not overestimate yourself. In mortgage matters it is recommended to be careful and get a loan for a longer period. It is better to pay off the debt ahead of time than to deal with the debt and pay ends.
It should be taken into account that there are no guarantees that tomorrow you will receive a high-paying position or a business project that is planned to bring quick results. Having issued a mortgage for 2 million rubles for 10 years, you will have to give 26.4 thousand rubles, which will exceed the initial financial possibilities of a person accustomed to set aside 20 thousand rubles each.
Leave room for alternative
Do not be afraid of 20-year liabilities to the bank – it is in your power to reduce this period by early repayment, even when real income does not increase and no improvement in financial position is expected. Thoughtful borrowers can a lot, even if the circumstances are not entirely successful.
Maternity and capital
If the family replenishment, it is not a reason to look for excuses to the fact that the mortgage is not repaid ahead of schedule. The state extends to helping hand in the form of maternity capital. After the birth of the second child, within 2-3 months, the issue of sending funds under the family certificate to pay off the existing mortgage in the amount of 453 thousand rubles is resolved. When paying off part of the mortgage through the PFR, the payment will be reduced by 4-6 thousand rubles (much depends on how quickly capital is used), which are then sent to create a fund used for the new early repayment.
Setting aside 2-3 thousand per month, for 3-4 years they collect the amount of 72-144 thousand rubles. Make a deposit with replenishment and take the rule to set aside the minimum amount from each salary. By making an early 100 thousand rubles in 4 years, you can reduce the payment by another 2-3 thousand rubles. Use these funds to increase the fund for early repayment.
After another couple of years, the new early tranche will reduce the payment by new 2-3 thousand rubles. Thus, even in the absence of growth in earnings and other additional revenues for 10 years, it is possible to halve the mortgage payment.