Refinancing of a mortgage loan: how and when is it worth changing banks

People who have issued mortgages more than 2 years ago, faced a lot of unpleasant surprises: in the form of an increase in the interest rate (in the contract, this nuance turned out to be indicated), in the form of large commissions under the terms of the program. Of course, when they learn that they could have avoided all this by registering a mortgage now, they are disappointed.

The system of mortgage lending is really developing, the conditions of the programs do not make it accessible to everyone, but the competition forces the banks to make concessions.

New mortgage program

So there was a program "refinancing a mortgage loan," which immediately found its clients (10 out of 100 borrowers in one of the major mortgage banks, took advantage of this offer). This form of the contract is also called on-lending, and some jokingly say "divorce with the bank." It allows you to get a loan in another bank on more favorable terms: changing the period, the rate, the method of repayment, the currency of the loan. And pay off the outstanding debts.

We re-arrange an expensive mortgage

To make a mortgage to pay off debts in another bank, you need to collect a standard package of documents and attach documents for the mortgage. Of course, the bank reserves the right to refuse, but if you are not a malicious defaulter, if there was not a single delay, you have nothing to fear.

However, you should be prepared for new costs when making a mortgage in another bank. Refinancing of a mortgage loan will cost about 30 thousand rubles. Additional costs will go to re-register the contract of sale of the apartment: state duty for lifting the encumbrance, registration of a new transaction in the registration chamber. Having received from the new bank the necessary amount equal to the remaining mortgage debt, you can repay it, but you may have to pay the previous bank a commission for early repayment. But, despite all these expenses, remember how much you will save by changing the lender, i.е. bank.

Despite the fact that refinancing a mortgage loan is rather troublesome and unusual for Russians, this product is worthy of attention also because it gives more determination to the borrower. After all, now every citizen will be able to change the bank if he finds more favorable conditions or is forced to do so by financial difficulties.

Recommendations

Choose a mortgage program with a lower interest rate and other more favorable conditions to reduce the monthly payment: change the period, the way of repayment, and possibly the currency.

Refinancing of a mortgage loan makes sense to make out, if from the moment of reception of the mortgage has passed a maximum of 2 years. This is due to the repayment of interest in the first years after purchase, rather than the very amount of the loan. After 3-5 years from the refinancing of the benefits you will not feel any.

Refinancing of other types of loans

Refinancing is offered by banks within the framework of the mortgage lending program, but sometimes there are other suggestions: refinancing consumer loans, car loans, cash loans . These types of services should be used if you want to change the currency of the loan in case of a significant change or instability of the exchange rate. Some banks are ready to refinance and credit cards, giving the client the opportunity to make equal payments. As for car loans: often the client has a need to purchase a new car, but the contract has not yet passed the validity period . One of the big and serious banks - Raiffeisen - offered an interesting solution. The client hands over the purchased car, for which he has not yet paid, to the salon, receives the money and pays the initial installment for the new loan. Thus, it becomes possible to buy a new model car. What many customers and banks were very happy about.

Refinancing of mortgage loans, as well as other types of programs, significantly increased the portfolio of banking services, helped improve the situation of customers, providing the opportunity to choose. And all thanks to healthy competition.