Introduction to early repayment of mortgage loans
Already published in the community excerpts from the answers to questions from a journalist. I always leave them, so that I can compare them with the stingy lines that I eventually quoted ; (
I hope someone will come in handy;)
Topic: "Introduction to the early repayment of mortgage loans."
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Early repayment of a mortgage loan - how often does this practice occur in Russia?
Oh yeah! Most borrowers seek to repay the loan early. As a rule, they are not extinguished at one time, but gradually - by payments in excess of the established monthly payment. Those. send for redemption an additional 500-2000 dollars a month.
For how long today on average a loan is repaid. taken for 10-15-20 years?
According to various banks, the average life of a loan is 5-7 years. This term practically does not depend on the duration of payments established in the loan agreement. If only indirectly - with the same amount of a 10-year and 20-year loan, the amount of the payment itself is less with a 20-year loan, which allows for a more flexible budget planning.
Are bankers willingly accepting customer requests for early repayment? What is the reason? Is it in principle unprofitable for banks to have the client pay off the loan ahead of time? Why? Why then do bankers make concessions?
Artificial obstacles do not repair exactly. And due to the growing competition - if for most borrowers the possibility of early repayment without fines is important, then banks are forced to do it with a standard option.
Until recently, commissions were taken for early repayment - have all banks canceled them?
Now, as a rule, there are commissions for repayment at an early stage, i.e. within 3-6 months or, for a small number of banks, 12 months. The size of the commission is usually about 2% of the amount of early repayment.
Rarely, but in some programs there are periods with fines of up to 5 years, but this is done to, so to speak, balance a particularly favorable annual rate.
What are the advantages and disadvantages of a client early repayment of the loan? What benefits does he get from this, besides cheaper credit?
Upon partial repayment of the loan body, depending on the policy of the bank, either the loan term can be reduced while maintaining the size of payments, or the monthly payment amount while maintaining the loan term.
Accordingly, either psychologically it becomes more comfortable from the thought that paying is not already 20 years old, but 17 years old. And, they say, in six months, I will repay it and for another five years the loan term will be reduced. Or the monthly burden on the budget becomes easier by reducing the size of the payment.
How complicated is the early repayment procedure itself? What does a borrower need to do for this?
It is necessary to pay attention to the loan agreement, because often banks require the borrower to notify them in advance of their intention to repay the loan body in part or in full. The term for warning may be about a month. Those. if such an application should be, and the borrower did not file it, and simply credited the amount to the credit account, then the amount is likely to be written off only in the amount of the prescribed monthly payment. You should also clarify the minimum amount accepted as early repayment. As the majority extinguishes in parts, in order not to load employees with credit recalculations due to partial repayment in the amount of $ 100, banks limit the minimum partial repayment to amounts from $ 500 to $ 2,000.
I hope someone will come in handy;)
Topic: "Introduction to the early repayment of mortgage loans."
')
Early repayment of a mortgage loan - how often does this practice occur in Russia?
Oh yeah! Most borrowers seek to repay the loan early. As a rule, they are not extinguished at one time, but gradually - by payments in excess of the established monthly payment. Those. send for redemption an additional 500-2000 dollars a month.
For how long today on average a loan is repaid. taken for 10-15-20 years?
According to various banks, the average life of a loan is 5-7 years. This term practically does not depend on the duration of payments established in the loan agreement. If only indirectly - with the same amount of a 10-year and 20-year loan, the amount of the payment itself is less with a 20-year loan, which allows for a more flexible budget planning.
Are bankers willingly accepting customer requests for early repayment? What is the reason? Is it in principle unprofitable for banks to have the client pay off the loan ahead of time? Why? Why then do bankers make concessions?
Artificial obstacles do not repair exactly. And due to the growing competition - if for most borrowers the possibility of early repayment without fines is important, then banks are forced to do it with a standard option.
Until recently, commissions were taken for early repayment - have all banks canceled them?
Now, as a rule, there are commissions for repayment at an early stage, i.e. within 3-6 months or, for a small number of banks, 12 months. The size of the commission is usually about 2% of the amount of early repayment.
Rarely, but in some programs there are periods with fines of up to 5 years, but this is done to, so to speak, balance a particularly favorable annual rate.
What are the advantages and disadvantages of a client early repayment of the loan? What benefits does he get from this, besides cheaper credit?
Upon partial repayment of the loan body, depending on the policy of the bank, either the loan term can be reduced while maintaining the size of payments, or the monthly payment amount while maintaining the loan term.
Accordingly, either psychologically it becomes more comfortable from the thought that paying is not already 20 years old, but 17 years old. And, they say, in six months, I will repay it and for another five years the loan term will be reduced. Or the monthly burden on the budget becomes easier by reducing the size of the payment.
How complicated is the early repayment procedure itself? What does a borrower need to do for this?
It is necessary to pay attention to the loan agreement, because often banks require the borrower to notify them in advance of their intention to repay the loan body in part or in full. The term for warning may be about a month. Those. if such an application should be, and the borrower did not file it, and simply credited the amount to the credit account, then the amount is likely to be written off only in the amount of the prescribed monthly payment. You should also clarify the minimum amount accepted as early repayment. As the majority extinguishes in parts, in order not to load employees with credit recalculations due to partial repayment in the amount of $ 100, banks limit the minimum partial repayment to amounts from $ 500 to $ 2,000.
Source: https://habr.com/ru/post/7468/
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