Mortgage: what is it? And other topical issues

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

To begin with, I would like to say a few words about when and how the mortgage appeared. What this operation is, they already knew in ancient Rome and ancient Greece. In those days, such a word was called a pillar, which was installed on the land of the debtor for any obligation. On the pillar were the names of the borrower and creditor, as well as the dates when the debts were to be repaid. From the territory marked in this way, the person who had the debt could not take anything out or take it out.

In pre-revolutionary Russia, there was also a mortgage. That such a direction of financial activity exists was almost forgotten during the years of Soviet power. Therefore, many modern people who have used such a financial service often find themselves in a difficult situation, due to the fact that they did not calculate their strength. In Russia, from the 13th-14th centuries, they knew what a mortgage (of real estate) was, according to the rules of which, those who could not pay off debt obligations lost their property, giving it to merchants, usurers, or sometimes even monasteries. The mortgage,similar to the modern one, appeared in the Russian Empire in 1881.

Which countries have the best mortgage development? What is it like to take a loan to buy a home for a long period of up to 30 years at a low rate of about 6% per annum, Americans are most aware. Until the last economic crisis, the inhabitants of this country willingly took long-term loans to buy a house. Moreover, at a price of about 1-2 thousand dollars per square meter, many of them had a salary of about 5 thousand dollars a month. Today, housing loans in the US are issued for up to 15 years, and many residents of pretty cottages have become homeless due to job loss and the inability to repay the loan. Mortgages without a down payment are not common there. Those. a potential property owner should have accumulated about 10-20% of the amount of the apartment they like.

For Russia to get closer to pre-crisis mortgage standards in America, it is necessary that the economy does not experience serious shocks. In this case, organizations and individuals will invest in banks for a long time, which will enable credit institutions to provide long-term loans at minimum rates. Today, only the largest financial institutions, such as Sberbank, have more or less significant financial resources of this kind.

You can calculate a mortgage using loan calculators offered by banks. To do this, you need to choose the currency and terms of lending, determine your net income, calculate the funds already available forpurchase of housing (at least 10%), find out what programs are available for a particular category of the population (for example, young families), etc.

The Russian economy did not experience serious blows during the last global crisis, so mortgages became available to many families. What is a mortgage for those who have taken advantage of it? First of all, this is an opportunity to live in almost your own housing, giving money for its purchase, and not for rent. For those who took out a loan before the rise in housing prices and repaid it successfully, this financial service has become an opportunity to earn good money by selling an apartment at a higher cost. However, there is a fairly large group of people who lost their jobs and were unable to buy the desired square meters. Therefore, when concluding mortgage agreements, one must carefully weigh all the risks, especially if only one person in the family has a sufficiently high income, using which it is supposed to repay the loan.