Refinancing mortgages: banks. Mortgage refinancing in Sberbank: reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Increasing interest on bank loan products pushes borrowers to look for profitable offers. As a result, mortgage lending is becoming more and more popular. But before agreeing to such offers, you need to find out if they are really beneficial?

Reason for refinancing

Mortgage refinancing is another loan with better terms, the purpose of which is to close an existing home loan. Such a step is decided by those who consider the offers of other banks more profitable than the one they subscribed to before.

If earlier mortgage loans were issued at 13% per annum, today most banks offer the same service already at 10-11%. Naturally, such a mortgage will cost less. Therefore, reasonable borrowers start looking for financial institutions that can refinance them. Since banks are in no hurry to restructure existing loans, finding ways to refinance becomes a logical and correct decision.

Consideringthe terms for which housing loans are issued, mortgage refinancing is very profitable. Reducing the rate even by a couple of percent will help in this case to save significantly. If the interest difference is less, then it is better not to refinance. After all, refinancing will require registration of a mortgage in another bank with all the ensuing consequences: registration of insurance, payment of all necessary fees and commissions. And do not forget about how much time and effort will be spent.

Refinancing conditions

Not all banks can offer mortgage refinancing to their clients. Such a proposal is high-risk, therefore, to issue such loans, an additional reserve is needed, and not every lender can create it.

Despite the fact that the financial situation of the borrower was checked when applying for a home loan, refinancing a mortgage in another bank will require a second check.

Refinancing requirements

As with any loan, credit history is important when refinancing. In addition to the standard package of documents required to apply for a loan, the bank will require a valid mortgage agreement and a certificate of no delays and good faith performance of loan obligations. You will also need the written consent of the current lender to early repayment of the mortgage.

Client Requirements

A valid mortgage loan must not beless than 1 year ago and during the period of using the housing loan there should be no delays in payments. If we consider the refinancing of a mortgage in Sberbank, we can note very tempting conditions. But only conscientious payers will be able to count on refinancing.

Different ways of on-lending

As in the case of the initial home loan, in order to issue a mortgage on-lending, banks will require collateral, which is the purchased property. For this reason, the client will need to submit documents that confirm his financial situation and the conclusion of the appraisers regarding the cost of housing.

From the bank that issued the mortgage loan, you will need formal consent in writing to close the loan ahead of schedule. The refinancing lender is obliged to transfer the money to the required bank account, which, upon receipt of funds, closes the loan and removes the pledge from the residential property.

For a short period during which one credit institution removed the pledge from the property, and the other has not yet imposed it, the client will have to pay increased interest on the loan. Such a measure is a kind of insurance for the refinancing bank. There is no other collateral for this loan. But as soon as the collateral is completed, the reduced interest rate will begin to operate.

Possible mortgage loan offers

For those who decide to refinance their mortgage, it is useful tocheck out the offers of several banks. They may differ in the following parameters:

• interest rates;
• loan terms;
• loan amounts.

There is only one invariable condition that all creditors put forward. It concerns the purpose of the loan, which is directed only to the full repayment of the mortgage in another bank. Moreover, sometimes the funds are directed only to repay the principal amount, and the borrower will need to pay interest and other mandatory payments separately.

Another refinancing option involves not only paying the principal, but also repaying interest and other loan payments. Less often, a loan is issued that exceeds the amount of payments under the current mortgage agreement. In this case, the client has the right to use the remaining funds as he pleases.

Bet difference

A mortgage loan involves large amounts of debt, so before choosing a bank, you must carefully study all offers and take the time to calculate the benefits.

Loans offered by banks can have fixed and floating rates. Already by the name it is clear that the first remain unchanged for the entire period of lending. This is very convenient and allows you to plan expenses in advance.

Floating rate has two components: fixed and variable. One will remain the same, the other directly depends on external factors that will be specified in the contract. For ruble mortgages, it is customary to calculate the floating rate using the indicatorMosprime, which can fluctuate daily.

Along with bank rates, there is a refinancing rate set by the Central Bank. This is the main tool that allows you to control loan interest, used by the Central Bank of the Russian Federation when issuing loans to banks. This rate is subject to change, but not more than once a year.

Currency mortgage

Refinancing foreign currency mortgages is often not so profitable. A loan in foreign banknotes may seem more attractive at the time of registration, but the currency market is unstable, and the situation can change radically at any time. At the same time, payments will increase.

In some cases, banks agree to change the currency of the loan, but not everyone agrees to do so. Yes, and everything here will depend on the specific borrower.

Types of refinancing

Changing one loan for another, you can change its main conditions. For example, reduce or increase the term of the mortgage, change the currency of the loan, lower the interest rate or reduce the amount of monthly payments.

The last option is the least profitable, since with a decrease in mandatory payments, the mortgage term increases, and, consequently, the amount of overpayment on the loan.

Bank offers

Mortgage refinancing in Sberbank is the most profitable. Customer reviews of this organization are mostly positive. Refinancing covers the entire part of the debt in another bank, and the loan term can be up to 30 years.

If the amount of debt does not exceed1.5 million rubles, it makes sense to contact RosEvroBank. The term of the contract is up to 20 years, but requires the payment of a commission of 0.8% of the amount received.

Mortgage refinancing at the "Bank of Moscow" is possible even with a small amount of the remaining debt, at the same time at a very low interest rate of 11.95-12.95% and for a long period of up to 30 years.

In cases where the mortgage loan is very large, "Absolut Bank" will come to the rescue. He works with loans up to 15 million rubles. Loan term up to 25 years. But you will need to have insurance from the client and pay a commission.

Don't rely too much on honesty and openness of credit institutions. Not all banks report on all upcoming payments under a loan agreement, which in reality can be fraught with many pitfalls. Therefore, when deciding to refinance, it is necessary to study in detail all the offers, requirements for insurance, payment of commissions, etc., so that the desired benefit does not turn out to be imaginary.