How to save on a mortgage and buying a home. How to save on a mortgage: practical tips for reducing your costs - every borrower should know this! How to save money by lowering your interest rate

Applying for a mortgage is a troublesome process. How not to get confused and choose the most favorable conditions, how to influence the cost of the loan, how to avoid unnecessary overpayments at various stages of lending? Let's look at all the possible ways to save on a mortgage and learn how to protect your interests before the bank!

Additional costs include:

one-time, monthly fees for issuance, for use, for early repayment, etc.;
fee for processing a loan application;
payment for the services of an appraiser, notary, realtor;
insurance payments;
RKO loan account;
rent of a deposit box.

What you can still save on:

choose an offer with minimal commissions (in conditions of high competition, banks refuse most of them voluntarily);
ask the bank full list accredited appraisers and notaries, compare their prices for services;
refuse the services of a realtor or broker and start preparing title documents without the help of intermediaries;
insure the collateral yourself, refuse the personal insurance contract (real savings of 0.5% of the loan balance annually);
negotiate with the real estate seller the possibility of settlement without using a safe deposit box or reduce the rental period to the minimum possible.

The total savings on all of the above items can range from 1 to 5% one-time and annually, approach these calculations responsibly.

As a separate way to save money, it is necessary to consider the bank’s conditions at the point of receiving loan funds. There are two options: cash out the amount or make a transfer within bank accounts.

The commission for cashing out can reach up to 0.5%, and for transfer - up to 1.5%. The difference in overpayment for every 1 million loan will be 10,000 rubles.

Lending object

When buying a home, we are faced with a choice: purchase real estate on the secondary market or take part in shared construction. From an economic point of view, shared construction is much more profitable, especially if the contract is concluded for early stages project - the so-called foundation pit stage.

Let's figure out how to avoid the pitfalls and actually save on a new building mortgage.

1. Selection of developer

When choosing a developer, you need to focus on his reputation: find out how many objects they have already commissioned, whether construction deadlines were violated, how smoothly the procedure for transferring the finished object to equity holders went, whether there are any complaints from the owners about the quality of the work performed after some time. Most quick way– take all the information from the Internet, but remember about the “black” PR of competitors, try to collect as much information as possible from various sources.
The inspection should concern not only the developer as legal entity, but also the founders. Often, having ruined their reputation, unscrupulous owners rebrand their company - change the name, logo or brand. But this does not change the essence; you should not trust such companies.

2. We check the documents

At the first application, the developer must present you with:

constituent documents;
certificates of state registration and registration with tax authorities;
approved financial reports for the last 3 years;
audit reports for Last year.

In addition, the developer is required to have documents on ownership or lease land plot and permission to build real estate on this site.

Naturally, the first thing to do is to familiarize yourself with all the documents and make sure that they are available on your own, but it is better to make the final decision on concluding an agreement after consulting with experienced lawyers.

3. Indirect factors

It would be a good idea to find out which banks provide construction loans. The presence of little-known new banks on the list should make you think - fly-by-night banks are created for fly-by-night developers. If a construction company is trusted by large, reliable banks with a proven reputation, you can safely put it among potential partners.

But what should you do if the apartment you purchased ends up being held hostage by long-term construction, that is, the project’s delivery deadlines will be delayed by more than 18 months?

Theoretically, you can unilaterally terminate the contract 2 months after the expiration of the terms and demand the return of the entire amount, but in practice, shareholders do not give up the dream of a new apartment so easily.

According to the Federal Law “On Participation in Shared-Shared Construction”, for each day of delay you have the right to demand that the developer pay a penalty.

The amount of the penalty is 1/150 of the Central Bank of Russia refinancing rate for each day.

For example, for a mortgage - 5 million rubles. at the Central Bank of Russia refinancing rate of 8.25%:

Penalty = 8.25/150 * 5,000,000/100 = 2,750 rubles/day

If you do not terminate the contract, wait until construction is completed and demand compensation for delays, you can save on the cost of the mortgage. Of course, there remains the risk of not waiting for the completion of construction, but this relates more to the legal than to the financial aspect.

According to current legislation, you can claim 2 types of tax deductions:

property tax deduction when purchasing a home;
loan interest deduction.

Property tax deduction is 13% of the value of real estate not exceeding 2 million rubles, that is, the maximum you can return is:
2,000,000 * 13% = 260,000 rub.

The deduction amount can be received as a lump sum, provided that the amount of income tax you paid for the year is equal to or exceeds the deduction amount.

Salary amount – 10,000 rubles/month

Annual income = 10,000*12 months = 120,000 rubles.

Amount of income tax = 120,000 * 13% = 15,600 rubles.

The maximum deduction amount you can count on is RUB 15,600.

You will make this calculation annually until the amount due to you is completely withdrawn. You can use the tax deduction once in your life. Please note that pensions and scholarships are not taxed and therefore are not included in the calculation of the deduction.

Tax deduction for mortgage interest paid equal to 13% without restrictions in the amount.

For example, for a loan of 1,200,000 rubles. over 20 years you will pay 2,225,560.80 rubles. percent, which means you have the right to a refund of 2,225,560.80 * 13% = 289,322.90 rubles.

Important! Tax deductions are not automatically calculated! Moreover, you should justify your right to them - write an application to the tax service at the place of registration and provide the following documents:

declaration (form 3-NDFL);
income certificate (form 2-NDFL);
equity participation/purchase agreement;
copies of payment documents certifying the fact of payment for real estate;
certificate of state registration of ownership;
loan agreement with the bank;
certificates of interest withheld.

As you can see, the procedure is not simple, but it allows you to significantly save on your mortgage.

Housing programs, maternity capital

Take advantage of all the ways to save on your mortgage, consider participating in preferential lending programs.

“Young Family” is a mortgage lending agency program, branches are located in all regional centers. The program provides for payment of 30% of the cost of housing by the state free of charge.
Rural development program - to improve the living conditions of young families and professionals permanently residing in rural areas.
Preferential loan programs to support families of military personnel, teachers - the list of such programs is constantly expanding, try to familiarize yourself with it in detail.

Separately, it is worth highlighting the use of maternity capital when repaying a mortgage. Today, banks allow you to make it as a down payment or to pay off debt. Greater savings will come from the option of making a one-time contribution of maternity capital towards the principal debt on the mortgage. Many banks provide for the recalculation of monthly payments when a certain percentage of the loan is repaid.

Refinancing

The peculiarity of mortgages is the long term of the loan; banks’ loyalty to clients increases every year, and over the coming decades the situation on the market may change dramatically.

Our advice, even after signing a mortgage agreement with the bank, continue to monitor current offers, because you always have the opportunity to refinance (refinance) the debt. If your bank is not ready to change the terms of the loan, you can contact a third party.

Technically, this refinancing scheme looks like this:

Bank B pays off your debt to Bank A and enters into a mortgage agreement with you on new terms.

What are the benefits of refinancing:

It is possible to change the loan currency.
You can reduce the loan term (relevant if Bank A provided a commission for early repayment).
You can lower your mortgage interest rate if the appraised value/loan amount ratio has changed for the better.
You can change the interest rate from fixed to floating if there is a stable decline in market indicators.

By attracting new clients, banks significantly simplify document submission procedures, introduce online services, and make decisions remotely. But once again it is worth plunging into the jungle of the bank office only if there is a guaranteed opportunity to save, calculated with all the nuances.

A significant disadvantage of refinancing a mortgage is the automatic loss of the right to a tax deduction, as well as the need to re-pay for appraisal, insurance, and bank services.

We have looked at the most effective ways to save on a mortgage, now combine theory with practice and be prepared for any unforeseen situations!

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Reduce payment and shorten term at the same time

I have a 10-year mortgage, but I plan to pay it off in five.

Maxim Kainer

pays off the mortgage for four years

When I started early repayment, I asked the bank to calculate options for shortening the term and reducing the payment: I wanted to understand how to pay more profitably. The employee replied that he could not make accurate calculations. I had to figure it out myself. It's good that I did it.

What will you learn

An example we will use to analyze

Mortgage for 10 years, issued in October 2013. The loan amount is 1.1 million rubles. The rate is 11.9%. Monthly payment - 15,719 RUR.

Let’s say that in May 2017, RUB 400,000 appears, which can be deposited to pay off the mortgage loan ahead of schedule.

How to pay off your mortgage profitably

Avoid unnecessary payments in the form of fees or late fees.
Check that the agreement allows you to make regular payments for partial early repayment.
Make sure that monthly partial early repayments do not make the process more expensive due to any contract conditions.
Find out from the bank whether it is possible to pay off your mortgage early without going to the branch, so as not to fill out paper applications every month.
Choose a lower monthly payment amount rather than a shorter term. In this article we will tell you why.
Continue making your down payment each month as if you had not reduced it.

What is better to reduce: term or payment

The bank advised me and all my mortgagee friends to shorten the term, because this option reduces the amount of overpayment. This works for any amount: at least 400,000 rubles, at least 25,000.

If you shorten the term, you have less overpayment on the loan. This is what the credit calendar thinks. Here's a comparison chart.

I deposited RUB 400,000 ahead of schedule, what next?

No early repayments

We'll overpay

786 139 RUR

Payment after May 2017

RUB 15,719

Last payment due date

October 2023

Last payment amount

RUB 15,578

We reduce the period

We'll overpay

RUB 498,754

Payment after May 2017

RUB 15,719

Last payment due date

March 2020

Last payment amount

4110 R

We reduce the payment

We'll overpay

RUB 612,239

Payment after May 2017

8261 R

Last payment due date

October 2023

Last payment amount

8486 R

But the bank does not take into account that after the minimum payment is reduced, the borrower can continue to pay the same amount that he paid before. This is the whole secret: to pay off early, you need to reduce the payment, but continue to pay more. Then the amount of each subsequent mandatory payment will be less and less and at some point you will have enough money to pay off the debt completely ahead of schedule.

In our example, to repay the mortgage loan early, you must continue to pay 15,719 RUR every month, despite the fact that the new payment after its reduction amounted to 8,261 RUR. And you need to continue to do this: deposit 15,720 R each time and choose early repayment each time.

How do I pay off my mortgage early?

Regular method	Maxim Kainer method
	Minimum payment: 15,720 RUR

We shorten the period. The minimum payment remains 15,720 RUR	We are reducing the minimum payment. Now it is 8261 R
We continue to deposit 15,720 RUR. The minimum payment does not change	We continue to deposit 15,720 RUR. We reduce the minimum payment every month
We will close the loan in March 2020.	In March 2020, the minimum payment will be 115 RUR. We deposit 4109 R and pay off the balance of the debt

Regular method

Minimum payment: 15,720 RUR

We deposit additional money: 400,000 RUR

We shorten the period. The minimum payment remains 15,720 RUR

We continue to deposit 15,720 RUR. The minimum payment does not change

We will close the loan in March 2020.

Maxim Kainer method

Minimum payment: 15,720 RUR

We deposit additional money: 400,000 RUR

We are reducing the minimum payment. Now it is 8261 R

We continue to deposit 15,720 RUR. We reduce the minimum payment every month

In March 2020, the minimum payment will be 115 RUR. We deposit 4109 R and pay off the balance of the debt

Total: you pay as if you were shortening the term, but in fact you reduce the minimum payment.

Why such difficulties?

This early repayment method is for one thing only: to reduce future risk. Look.

When I choose to reduce the mortgage term, I tell the bank: “I want to continue paying these 15 thousand rubles, but so that it ends faster.” That is, I promise the bank that the rest of the time I will continue to pay 15 thousand. My minimum payment is always 15 thousand, even if I lose my job or go on vacation. Yes, my term is being shortened, but throughout this period I have to pay the maximum.

When I reduce my payment, I reduce my monthly debt load. Every month I owe the bank less and less money. But while I have the opportunity, I choose early repayment: I pay more and again reduce my debt load.

As long as I have the opportunity to pay the full 15 thousand, I will not feel the difference between regular and early repayment. I pay the same amount all the time. But if, for example, I lose my job or go on vacation and can no longer pay 15 thousand, it won’t be so scary for me: my minimum payment by that time will be greatly reduced. For example, in April 2018 the minimum payment amount will be about 6,700 rubles, and in May 2019 - about 3,700 rubles.

If I have an attack Hard times, I will be able to suspend early repayment and return to payments as scheduled. For example, if my income decreases in May 2019, I will simply continue to pay my 3,700 rubles until the situation improves. It will take me longer to pay rent, but it won't be as hard.

I understand that this is difficult to understand in the text, so I have prepared a table for you. There are four options for paying off your mortgage, mine is the last one. Scroll down to the AR column where I deposit 400k early and watch the math magic.

This is where the magic begins

Remember that advice on the Internet should not be taken as a guide to action. When you apply for a mortgage, always read the contract, carefully study the payment schedule and create spreadsheets in Excel. There is nothing more reliable than a hand-drawn early repayment schedule.

Read the contract

This is stated in the contract:

If there is something wrong with your agreement, check with your bank that there are no obstacles to regular partial early repayment.

Make payments convenient

Prepare the infrastructure. Every time I make a payment and want to write off the overpayment against early repayment, I need to fill out an application for partial early repayment. In the first months, I went to the bank, took cash and filled out a written application for early repayment. These are unnecessary transaction costs.

To exclude them, I created a creditor bank card linked to my mortgage account. A salary from one of my employers falls onto this card. According to the terms of service, if more than 10,000 rubles pass through the account, then you do not need to pay for the card.

Remember

Before you start making payments under my scheme, make sure that you can do everything so that monthly partial early repayment is convenient and does not make the process more expensive.

See that the agreement allows you to make regular payments for partial early repayment, and then completely close the loan.

Find out from the bank how to make early repayment convenient so that you don’t have to go to the branch every month and fill out paper applications.

Enjoy your minimum payments.

Content

If a house, apartment or other real estate is mortgaged, and funds can be allocated from the family budget to pay off part or all of the debt ahead of schedule, you should know how to do everything correctly so that the bank is satisfied with the cooperation and the person saves on interest payments. Recommendations on how to quickly pay off a mortgage loan that will be given will help you find, if necessary, a suitable way out of the current situation.

Is it possible to pay off a mortgage early?

The condition is regulated by the loan agreement. Most banks and financial institutions provide this opportunity. You can pay off your mortgage loan early in full or in installments without interest, commissions, penalties, quickly and with minimal costs. Some organizations have certain restrictions on the amount or other conditions. For example, the lender has the right to require the borrower to notify in writing or orally a few days before the end of the payment period that he plans to repay the mortgage ahead of schedule.

In any case, the conditions for changing the payment schedule in order to quickly close the mortgage are discussed individually before drawing up a loan agreement. It must clearly state the clauses regulating the procedure, process and possibility of repaying a mortgage loan ahead of schedule, the minimum and maximum monthly payment that the borrower has the right to pay additionally.

How to pay off your mortgage quickly

Early repayment of a mortgage loan guarantees a reduction in the amount of overpayment, saving your own funds and shortening the loan term. The faster the borrower can repay the debt, the less the overpayment will be. Most debtors take out a mortgage for up to 15, 20 or 30 years, but pay it off much faster. For those citizens who take into account various force majeure circumstances (reduced salaries, the emergence of new financial obligations and problems that need to be resolved quickly, unplanned purchases) - this is normal practice.

Early repayment of a mortgage loan can be full or partial. Full repayment means paying the entire amount of the debt at once. In case of partial repayment, the borrower, in addition to the mandatory monthly payment, makes additional cash, their size is not limited by specific requirements. You can quickly pay off your debt using maternity capital, insurance, personal funds, subsidies, etc.

In accordance with current legislation, citizens of the Russian Federation can partially or fully repay their loans. To do this, they must notify the bank of their intention 30 days (another period is specified in the agreement) before the planned repayment date. Interest is paid only for the actual period of use of borrowed funds. The application can be submitted orally or in writing, by telephone or online.

After partial repayment of the principal debt, the bank issues the borrower a new payment schedule, in accordance with which the monthly payment and interest are reduced. If the debtor managed to quickly repay the debt in full, then a document is issued indicating that the loan is closed. This certificate will protect you from possible problems in the future. It becomes proof that the debtor has fulfilled all obligations to the bank.

Reduced payment amount

One of the 8 effective ways to pay off your mortgage quickly is to lower your monthly loan payment. It is recommended to resort to it for borrowers who are not confident that they will always be able to collect the required amount on time to pay off the monthly installment. You can reduce the amount of payment under a mortgage loan agreement if:

the borrower has a stable job, but wants to play it safe;
there is no 100% confidence in your financial situation;
the financial situation is unstable - earnings periodically fall and rise, the debtor can quickly earn a large monetary reward.

By reducing the amount of the contribution, the borrower will not significantly reduce the amount of overpayment, but will reduce the financial burden, protect himself from delays, since he will be able to pay the obligatory monthly contribution in any situation, and this is already an important and significant advantage. The loan term in the event of a reduction in the payment amount remains the same, as does the interest rate, debt repayment scheme, etc.

To reduce the size of the payment, it is required to periodically or constantly make an additional contribution in addition to the main monthly one. If the borrower has free money that will help quickly repay the loan, he must contact the bank or other financial institution and report his intention. You should always focus on the contract. It indicates all the nuances of the procedure. No less effective method To resolve this issue, consult a bank employee: he will provide all the required information about the service.

Reducing the loan term

If it makes no sense to reduce the payment amount, then you can use another of the 8 ways to quickly pay off your mortgage. Experts recommend reducing the loan term in the following cases:

when the borrower has a stable good income, of which he is 100% confident;
when there is an opportunity to soon receive the necessary monetary compensation, which will completely cover the debt (a person has not yet managed to sell his old apartment, but cannot delay the move, he has to take out a mortgage loan, which he will immediately close when he sells his property).

In such cases, you can make an additional contribution to repay the loan without risk and significantly reduce the loan term. But do not forget that the material load should be feasible. The advantage of reducing the loan term is obvious. This method minimizes overpayment. Its disadvantage is that the monthly payments are unaffordable for most debtors.

Types of loan payments

Before taking out a mortgage, you have to consider many different nuances. One of the first is the type of loan installment chosen. It can be annuity and differentiated. Each of them has its own pros and cons, each type has a huge impact on the effectiveness of early repayment of the loan. Therefore, if you plan to close your mortgage ahead of schedule, then this nuance requires close attention.

The type of payment plays an important role in mortgage lending because:

it determines the scheme by which interest will be calculated;
it affects the size of the monthly contribution;
It depends on it how the “body of the loan” will be distributed over its entire term.

If we talk about early repayment of a loan, then the situation is more complicated, and in order to understand which strategy is best to choose to repay the loan as quickly as possible, it is necessary to carry out individual calculations, taking into account the term, size of the loan, method of calculating interest, rate, financial capabilities of the borrower, etc. There is no single correct advice regarding which type of payment to choose. It all depends on the specific conditions and situation.

Annuity

This type of contribution involves dividing the principal debt and accrued interest into equal parts. In other words, the debtor must pay the same payment every month throughout the entire loan term. Typically, financial institutions provide clients with a schedule that specifies how annuity premiums will be paid. But if you wish, you can carry out all the calculations yourself.

The amount of monthly annuity mortgage payments is calculated using the formula - x = S * (P + (P/(1+P)N-1)), where x is the amount of the monthly payment, N is the loan term in months, P is the annual monthly interest rate bid. To calculate the interest component of the contribution in question, you need to multiply the loan balance for the specified period by the annual interest rate, and divide the resulting figure by 12 months.

The following formula is used - Pn = Sn * P / 12, where Sn is the remaining debt, Pn is the amount of accrued interest on the mortgage. That part of the monthly payment that will allow you to repay the principal debt on the mortgage is calculated using the formula - s = x - рn, where s is the required indicator, x is the amount of the monthly mortgage payment, рn is the interest established at the time of the nth payment.

To find out what part is spent on paying off the principal debt, the monthly payment is reduced by the accrued interest. Since the value of s depends on previous mortgage payments, it is calculated sequentially for each month, starting from the first. The accuracy of the resulting indicator depends on the accuracy of the calculations performed. A special loan calculator helps make the calculations easier.

An annuity implies payment at the initial stages of 80-90% of the accrued interest on the loan, only 10-20% of the total paid amount goes to pay off the principal debt. When choosing the loan repayment method in question, the debtor first pays interest, and only then the principal. According to experts, an annuity is beneficial first to the creditor, and only then to the debtor.

The advantages of the scheme under consideration are as follows:

possibility of obtaining a larger loan;
gentle burden on the debtor at the initial stages;
convenience of loan repayment due to the fact that monthly payments are fixed, as a result, eliminating the possibility of accidental debt occurrence;
convenient budget planning;
longer loan term.

The disadvantages of the annuity scheme include a large overpayment and a constant amount of contributions paid throughout the entire mortgage repayment period. If we compare the annuity and the differentiated scheme, then we can say without making calculations that for the debtor who chose the first method of repaying the principal debt, the loan will cost more, since the loan body decreases more slowly, and interest is charged on it.

The debtor knows what payment he must make each month, plans his budget and provides for everything in advance possible problems to avoid penalties imposed by a bank or other financial institution in case of late payment of the monthly installment. But it is much more convenient when the amount of mandatory payments on a mortgage loan gradually decreases.

The annuity scheme is beneficial primarily for creditors. They receive the maximum profit from the loan issued. At the first stages, the debtor mainly repays interest on the use of borrowed funds, as a result - a slow decrease in the amount of the principal debt and a more significant overpayment on the mortgage loan. To reduce it, there is only one way out - to exercise the right to full or partial early repayment of the debt. The debtor decides how to do this - by reducing the monthly payment or the loan term.

Differentiated

This method of repaying a mortgage is called commercial or classic. It provides for the accrual of interest on the balance of the debt. Translated from in English differentiate means to distinguish, to differentiate - and the size of each subsequent monthly mortgage payment is constantly different from the previous one. This method of repaying the loan obliges the debtor to pay the loan in equal parts and interest, which is accrued on the remaining amount; it decreases every month, which causes a decrease in their value.

Advantages of a differentiated way to pay off your mortgage:

a small overpayment on the loan compared to an annuity due to the fact that the loan body gradually decreases, and along with it the amount of accrued interest;
gradual reduction of the financial burden on the debtor by reducing monthly payments;
a simple and understandable calculation principle that even a child can master.

The disadvantages of the differentiated method include:

relatively high first payments;
a smaller loan amount compared to the one that can be obtained by choosing an annuity;
always different amounts of payments, the need for constant reconciliation with the payment schedule chosen by the bank or other financial institution.

This method of mortgage repayment is more beneficial for borrowers. Even if the first loan payments are significant, the overpayment compared to an annuity is 1.5-2 times less. A differentiated loan can be partially or fully repaid at any convenient time. The way to do this profitably and quickly is chosen by the debtor. Experts recommend resorting to shortening the loan term at the last stages of repayment of the mortgage, and reducing the amount of payments at first, in order to minimize the amount of the obligatory payment.

Conditions for early repayment of a mortgage loan

To pay off your mortgage quickly and profitably, you will need more than just additional financial resources. A person must know his rights and obligations, be legally savvy in matters, be able to protect his interests in judicial procedure. The conditions for early repayment of borrowed funds are specified in the loan agreement and may be different in each specific case.

According to the law, citizens of the Russian Federation can repay their mortgage loans in full or in part without any obstacles. To do this, you must notify the bank or other financial institution within the prescribed period. The borrower must also take into account the terms of the agreement concluded with the lender. It spells out all the nuances of premature repayment of borrowed funds:

threshold (minimum) amount of early payment;
the method and deadline for notifying a financial institution of its desire to quickly pay off the mortgage in full or reduce the amount of payments;
the presence of commissions, fines, deductions, and other sanctions for recalculating the loan payment schedule.

The loan agreement may not include conditions for early repayment of the loan at all. In this case, the borrower should discuss this issue with the bank or other financial institution and document it in order to avoid problems in the future. If it becomes possible to quickly pay off the mortgage in the future, and the contract does not provide for an early repayment condition, the bank or organization has the right to refuse the client or demand an additional commission.

Borrower's procedure

To quickly pay off a mortgage loan, the debtor undertakes to:

notify the financial institution of the intention to deposit additional funds (the expected amount of the contribution is indicated in the application);
on a certain day, go to a financial institution to reissue documents and make payment in cash or by bank transfer;
if the additional contribution helped pay off the entire remaining part of the debt, take a certificate stating that the mortgage loan agreement has been closed;
draw up all documents in the relevant government authorities confirming the fact that the owner of the residential property is the borrower.

8 ways to pay off your mortgage faster

A loan is a significant financial burden, so every debtor tries his best to possible ways get rid of him as quickly as possible. There are many ways to quickly pay off a debt to a bank or other institution - personal savings, maternity capital, tax deductions, refinancing, special social programs, increasing the frequency of payments, reducing credit card expenses in favor of loan repayments, subsidies.

Own funds and savings

One of the 8 ways to pay off your mortgage quickly is to use your personal savings. Its advantages:

maximum reduction of the loan term, the ability to quickly relieve yourself of the financial burden;
minimum overpayment on the loan;
a quick opportunity to become the full owner of real estate purchased on credit.

The only drawback of this method is the need for strict budget planning. The debtor, by giving away his savings, is deprived of the only insurance that, if necessary, will help solve unexpected financial problems that arise.

Maternal capital

This method of paying off debt quickly is suitable for parents and guardians who have two or more children. They can receive monetary compensation in the form of a certificate for improving their living conditions; misuse of these funds is not allowed. A citizen who has the right to receive maternity capital applies to the Pension Fund and the bank. Institutions issue permission to use the certificate to repay a mortgage loan. The debtor gives the certificate and permission to the creditor. The amount of compensation is 400 thousand rubles.

Tax deduction

Holders of loans for the purchase of housing have the right to receive a tax deduction on the cost of real estate and interest paid to the financial institution. Its size is 13% of the amount of an apartment or house purchased on credit, but cannot exceed 2 million rubles. To receive monetary compensation, you need to contact the tax office or accounting department of the employing company.

Loan refinancing

If the borrower finds a more profitable program, he can exercise the right to refinance it - transfer it to another credit institution. Advantages of this method:

significant savings;
reducing the amount of overpayment;
the ability to choose a more suitable loan program in order to improve conditions.

Transferring a mortgage loan from one organization to another involves the removal of all obligations of the debtor to the current creditor and the transfer of the collateral to the new institution. In this case, a new mortgage agreement is concluded, which specifies a completely different interest rate, scheme, loan term, possibility of debt restructuring, etc. Sberbank offers favorable mortgage lending conditions.

Increasing payment frequency

If you can allocate funds from your income to repay the loan early, you can deposit them several times a month. This will shorten the loan period and minimize overpayments. It is recommended to increase the frequency of payments when the borrower has additional income, when extra money appears as a result of the sale of personal property, etc.

Reducing credit card expenses to pay off mortgage debt

If a person uses a credit card with a certain limit, then these funds can be used to pay off the mortgage loan. This method does not require any additional investments on the part of the borrower, and significant savings on interest are possible. Credit card should be absolutely free, with no annual maintenance fees.

Subsidies under existing programs for certain categories of citizens

Young and large families, military personnel, disabled people, orphans, single mothers, doctors, scientists, teachers, civil servants, public sector employees, etc. can receive free financial government assistance for partial repayment of a mortgage loan. Its value directly depends on the official income of the entire family. There are several subsidy programs. Each person chooses the appropriate option for himself.

Discuss

8 ways to quickly pay off your mortgage - schemes and methods for repaying your loan early

Attitudes towards mortgage lending in our country are different. Some people are afraid of loans like fire, and they can be understood, but for others, a mortgage is the only reasonable way to acquire their own home in the foreseeable future. Personally, I took out and almost paid off two mortgages, constantly improving my living conditions. Despite the “predatory” lending conditions, if it weren’t for this, I would still live in my parents’ apartment.

Be that as it may, a long-term loan, often involving impressive monthly payments over decades, is always a responsible step.

It is vitally important to soberly assess your strengths and choose a bank where the lending conditions match your capabilities. Can provide some help mortgage calculator, but you must understand that it is just one of the tools. You need to slowly weigh all the pros and cons, talk with a knowledgeable person, and ultimately make a thoughtful decision.

And if you have already taken out a loan, do not be lazy to follow economic news so that if something happens, you can save money. Unfortunately, a short-sighted consumer, due to lack of education in the field of lending or banal immaturity, is not even aware of possible methods of saving. But we are often talking about hundreds of thousands and even millions of rubles.

What is refinancing?

Imagine that at one time you took out a loan for better conditions, having previously studied the available offers. You paid it in good faith, and then discovered that market conditions have changed, and the same or another bank is offering a similar loan on more favorable terms.

You are contacting banking organization and ask for refinancing. In fact, it will look like you took out a new loan to fully or partially repay the old one, but under new conditions.

Of course, there are also pitfalls. For example, not all banks are ready to refinance loans, especially those not taken from them. There may be special requirements for borrowers. If the loan is secured, then the borrower will pay increased interest during the refinancing period. If you have already paid the interest and transferred to the “body” of the loan, you will not be able to refinance anything. In addition, there will be certain costs for re-registration and so on.

If the reduction in the interest rate ultimately covers the costs of re-registration, if the bank does not impose a moratorium, the conditions for early repayment are acceptable, and the rate can be reduced by more than 2%, refinancing can be called an effective tool for saving.
Mortgage refinancing

Let's look at everything specific example. You took out a mortgage loan at the height of the crisis at a high rate - don’t blame yourself, many did the same. You have been approved for 5 million, at 15% and for a period of 10 years

Over the past year, the mortgage rate has decreased by several percent (to around 10-11%). You understand that if you take out a loan for a similar amount and term now, you will pay less. And not just less - but 11 thousand less per month. Moreover, the total savings will be almost one and a half million rubles!

Of course, this does not take into account additional conditions, but no one is stopping you from at least checking the possibility of savings.

Refinance calculator

Of course, everyone's mortgage terms are different, and refinancing may not be right for everyone. By spending five minutes, you can, for example, calculate how much you can approximately save after refinancing, and whether you can save it at all.

Mortgage refinance calculator is an intuitive tool that, after filling out several fields, gives approximate loan terms on new terms. Optionally, you can change the loan term or payment amount to see how this affects the terms. It, of course, does not take into account all factors and only gives a general idea of the situation.

Let us remind you once again that refinancing is profitable and not always possible. It may turn out that the cost of re-registration will be greater than the final savings on the interest rate. It may turn out that the bank will not allow you to withdraw the collateral, an appraisal examination will be required, which will not work in your favor, and so on. But it may also turn out that by refinancing you will reduce the interest rate and save a million rubles.

To obtain up-to-date and reliable information about the pros and cons of refinancing, it is recommended to contact a qualified and preferably uninterested specialist.

To assess your chances of getting a mortgage. Thank you, useful reading.

Submit your application

Getting a home loan is a complex process. Choosing a mortgage program, preparing documents, waiting for approval from the bank, searching for suitable housing, conducting a transaction, drawing up a mortgage agreement and collateral for the loan object - these are some of the main stages that a potential borrower will have to go through on the way to obtaining a loan. Due to many nuances, mortgagers overpay where they can save. Next, you will learn how to reduce the cost of servicing a home loan through competent management of your capabilities and finances.

How to save on interest: calculation method and rate reduction options

There are two methods for calculating mortgage payments: annuity and differentiated. The main differences between the two methods of calculating interest:

differentiated payment is constantly decreasing. The payment consists of a stable part, which goes towards repaying the principal debt, and a share of interest on the loan. At the beginning of the mortgage, the amount of remaining debt is maximum, the percentage of interest in the first years of the loan is greatest;
with annuity calculation, the size of the payment is stable, but the ratio of the share of interest and principal debt changes. For example, at the start of the payment period of 25,000 rubles, 10,000 goes to repay the principal debt, and 15,000 goes to pay bank interest. But in the end, the situation can change dramatically, and 20,000 rubles will pay off the debt, and only 5,000 rubles will go to pay interest.

The main question for the borrower is which option is more profitable. If you pay off a mortgage over a period of 5-10 years in the amount of 1-2 million rubles, differentiated payments are more economical. But with a longer loan term, the difference in overpayment between the annuity and differentiated payments equalizes. According to calculations, borrowers save more on their mortgage by paying interest on a differentiated basis in case of early repayment in the first years of the loan than with an annuity.

Russian banks more often offer annuity loans for the following reasons:

equal monthly payments simplify the calculation of loan terms and verification of the client’s solvency;
subject to early repayment, it is more profitable for the bank if the borrower has an annuity.

Few credit institutions in 2020 provide their clients with the opportunity to take out a mortgage with differentiated payments:

Gazprombank: mortgages for real estate from large developers at 8.1% with differentiated payments. Down payment from 10%, maternity capital can be used, maximum loan amount is up to 60 million rubles.
Rosselkhozbank: rate from 8.2%, term up to 30 years, you can buy an apartment or house with a plot, down payment from 15%. You can choose differentiated interest accrual.
Sberbank: rates from 8.1%, minimum down payment (from 10%), you can buy housing in a new building or choose an apartment in a secondary fund.

Another way to save on your rate is to look for discounts. Banks reduce the rate if the client meets certain requirements:

discount up to 0.5% for salary clients. An organization that transfers a citizen's salary to a bank card must have a cooperation agreement with this bank. Otherwise, the person is not a payroll client, even if money regularly arrives on the same card;
discounts for young families. In 2020, the “Young Family” promotion continues at Sberbank, which allows you to save 0.3%. Spouses can participate, one of whom is under 35 years of age at the time of execution of the contract;
special offers for state employees and other preferential categories of citizens (residents of the Far North, large families, military personnel and other categories of Russian citizens);
special promotions from banks for accredited new buildings from friendly development companies. Rates for such objects may be lower than the market average by 0.5-2%.

Optimal loan term

They will help you correctly determine the mortgage term that is profitable for you. important facts about loan terms:

a long-term mortgage is beneficial with a small income: due to annual inflation and rising real estate prices, overpayments are reduced;
with a short-term mortgage, the bank places higher requirements on the borrower’s income level, since the monthly payments are higher;
with a small level of confirmed income, you can take out a loan for a long term and use partial early repayment to reduce the loan term;
a short-term mortgage can be restructured once in case of special financial circumstances or a credit holiday can be taken;
Without early repayment, you can only extend the loan term, but not shorten it.

In the event of a sharp fall in the ruble exchange rate, the bank does not have the right to change the terms of the loan agreement, and the client will be able to repay the mortgage early without penalties. If the national currency defaults, borrowers are protected from a sharp jump in the size of monthly payments. The exception is a mortgage in a foreign currency: if the ruble exchange rate of the currency in which you are repaying the loan increases sharply, currency exchange problems fall on the shoulders of the borrower. For this reason, in 2019, the Central Bank made foreign currency mortgages high-risk. Getting approved for a loan in dollars or euros has become much more difficult than before, which is why financial institutions across the country have widely abandoned them.

What is the best down payment for a mortgage?

In 2020, you can find mortgage programs with a starting contribution of 10%, and in some cases even zero (however, there are fewer and fewer such offers). From time to time, information appears in the press that the state plans to legally prohibit the issuance of mortgage loans without a down payment, considering them too risky for a financial institution. However, there is no official ban yet.

Moreover, the higher the down payment, the more favorable lending conditions the bank offers the client. The advantages of a large down payment are that you can:

choose comfortable payment terms, for example, differentiated payment;
get savings on the loan rate;
apply for a mortgage without proof of income using two documents.

Which home is more profitable to buy on credit?

The mortgage rate, as well as the terms of the loan, depend not only on the capabilities of the borrower, but also on the loan object:

It is profitable to take out a mortgage for housing under construction: rates for properties of accredited developers from 5%, down payment from 10%. Additional costs are possible - for example, repairs (new apartments are often rented without finishing);
secondary market apartments: starting fee from 15%, rates from 8.5% (without government benefits). Additional expenses - title insurance for 3 years, cosmetic or major repairs;
house with land - down payment from 30%, rates from 9.5%. Banks do not give mortgages on wooden houses and illiquid properties, which will be difficult to sell in the event of the borrower's insolvency. Additional costs are expensive insurance.

The most expensive mortgage product is loans to build your own house on a plot. Not all banks issue such loans, and lending conditions are sometimes less favorable than non-targeted consumer loans.

Tax deduction: how to return 13% of mortgage costs

If you pay for your home loan from your taxable income, the government will refund you the VAT spent on your mortgage. Rules for calculating tax deductions in 2020:

A citizen can receive a deduction from mortgage interest once per property;
the maximum amount of reduction in the tax base for calculating the deduction from mortgage interest is 3 million rubles (390,000 rubles tax);
when purchasing an apartment with a mortgage after 2014, the owner has the right to return up to 260,000 rubles of taxes paid per taxpayer. The maximum tax base for the principal debt can be reduced by 2 million rubles;
co-borrowers can jointly use their rights to tax deductions within the same mortgage object. If the apartment costs more than 4 million rubles, and the husband and wife have not previously received a property deduction, they can return 520,000 rubles in taxes;
if the right to deduction is not fully used, the citizen can receive the remainder of the benefit when purchasing the next property;
If funds from a maternity certificate are used to pay for a mortgage, 13% of the amount of maternity capital used cannot be returned.

You can receive a deduction through your employer or yourself, by filing an appropriate application with the tax office or with the help of intermediaries. If the borrower's income is not taxed, there is no right to a deduction.

Refinancing with government support

When the borrower has the right to take advantage of government benefits, subsidies and certificates, it is necessary to use this opportunity, even if the mortgage loan was issued several years ago. To date It is possible to refinance or restructure the loan within the framework of the following government programs:

use of maternity capital. If a second child appears in the family during the loan repayment, the parents can use the certificate funds to pay off the existing mortgage. Moreover, at the end of the mortgage, the property must be registered in the name of all family members in equal shares;
mortgage at 6%. If the spouses took out a loan for new apartment from the developer and a second and (or) third child appears in the family, parents have the right to receive a reduced rate of 6% for a period of 3 to 8 years. Perhaps in 2020 the benefit period will be extended until the end of the mortgage agreement;
writing off part of the mortgage debt when a third child appears in the family as part of regional assistance programs for large families.

In 2019, many mortgage holders refinanced their previously taken out mortgages at reduced rates of 9-9.5%. This allowed payers to save significantly without government support. In 2020, further reductions in rates are expected, as well as an expansion of government support programs.

Early repayment

The following early repayment options are available to each borrower:

partial early repayment with a reduction in the mortgage term or a change in the amount of payments;
full early repayment with payment of the principal debt.

When signing a loan agreement, pay attention to the possibility of early repayment and the presence of bank commissions for repaying the loan ahead of schedule. In 2020, banks rarely include harsh conditions in terms of early repayment, but it’s worth checking. With partial early repayment, the borrower chooses between reducing the loan term or payment. More economical option- shorten the mortgage term.

As practice shows, an active borrower who knows his rights and monitors the market situation will always find a way to reduce mortgage costs. You can get more detailed advice about profitable mortgages and methods of saving on home loans from a mortgage broker.

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