Two Schemes Of Mortgage Credit.

Buying the apartment on credit is much demanded offer, since not everybody can put an astronomical amount for housing, especially for young families. Mortgage loan for an apartment is intended to help in this. There is not more serious credit than mortgage.

Firstly, this is a very big amount. Secondly, it is quite a long term of the credit – it is very difficult to forecast income of family budget for twenty years in advance. If you can purchase a washing machine or a computer on credit without any problems – then you must be well prepared to buy an apartment on credit. Before taking a long-term loan for housing, you have to calculate the percentage on the payments, pros and cons of the mortgage.

Mortgage loan – is funds issued by the bank or other creditor to the customer for the long term on collateral of acquired real estate. The borrower pays interest monthly for the use of the loan, and also returns the part of borrowed funds. The housing acquired for account of the credit will be in the bail (mortgage) of the bank or other creditor until the full repayment of a mortgage by mutuary. Any active person who has steady income can obtain a mortgage credit.

If you are sure that you will be able to pay the mortgage over the next 10-15 years, you have to persuade the bank. Certainly, each bank has its own rules of mortgage credits, but lenders generally follow the principle: payment on the credit must not exceed 40% of the total family revenue. Some banks take into account not only the official salary, but also “alternative” sources of income.

Sources of income can be:

– Salary at the basic place of work, including overtime income, awards and bonuses;

– Earnings from the work for half-day;

– Revenue from private business activity;

– Income from distributed profit.

By the by, if you have the “old” apartment, experts recommend not to sell it. It is better to lease it and provide the bank with a written treaty with the tenants. This will significantly enhance your credit rating and show the ability to have an independent source of income; after getting the credit no one will prevent you to sell this housing.

There are two schemes of loan repayment: percentage on the residue and annuity.

If you choose the percentage on the residue, the loan is divided into equal parts, which are paid little by little, and rates are accrued on the unpaid balance of the mortgage. Thus, the first payment on the loan is the largest and then declines with each payment. When selecting such system of payments, the most important is to be convinced that payments during the initial period will not be too large and will not carry unrealistic load on the recipient of the loan.

In the second scheme of repayment, the entire sum for the credit (either the loan, or interests) will be divided into equal parts according to the quantity of months of payments. Annuity payments are more convenient as you can find out in advance the amount to be paid. However, this system has a drawback: the amount of payments will be higher than in the first scheme. But its benefit is simplicity. Even if a mutuary repays the mortgage faster, it will lead to the reduction in credit term and amount of payments will remain the same.

Not so long ago when the world economy didn’t experience recession many people purchased their houses with the help of mortgage. And today some of them cannot repay their loans though there is a way out – mortgage note buyer. Check out this mortgage note buyer site to learn more info about it as those guys state ‘we buy mortgages‘.

And one shouldn’t forget that we live in the world of high technologies. If we want something it would be intelligent to make use of all the tools available to us to get it on the best terms which are available on the market. For instance, for those who are interested in selling mortgage notes, modern web technology gives a truly unique chance to choose what is the best for them. Moreover, go to relevant forums, social networks, search for related blogs and subscribe to their RSS feeds – all this will help you create a true vision of the market.

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