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For many Russians, a mortgage is the only way to buy their own home. But long-term loans put pressure on the psyche in their own way – you can’t lose your job, reduce business turnover, otherwise there will be nothing to pay. Getting out of debt as soon as possible and with minimal losses for yourself is the dream of many borrowers.
According to Olga Daineko, an expert at the Center for Financial Literacy NIFI of the Ministry of Finance of Russia, There are two options for early mortgage repayment. The first involves partial payment of the debt. This will allow reduce monthly payments, insurance or shorten the loan term. To do this, you need to come to the bank, write an application and deposit the required amount. If you just put money into the account, they will be debited according to the scheme prescribed in the contract.
If the payments are not too onerous, then even after partial repayment, you can continue to pay the same amount as before. And when, for example, there are problems with work or other income, reduce the financial burden. It is important, says Daineko, that the mortgage lending agreement initially did not limit the amount of early repayment.
The second option is full mortgage payment. In this case, you will have to in addition to the balance of the debt, you need to pay interest accrued for the current period. After that, the bank will issue a loan closing certificate and a mortgage. With these documents, you can already apply to Rosreestr to remove encumbrances from real estate. The expert recalls that when using mother capital, it is important to arrange housing in equal shares with the rest of the family.
“According to the law, shares must be allocated within 6 months after the loan is repaid. This must be done after the encumbrance on the property is removed. Shares are allocated to family members who are available at the time of allocation of shares. For example, only two children were indicated in the obligation to allocate shares, and at the time the shares were allocated, there were three children – the third child also needs to be allocated a share, ”
– notes the specialist.
According to Daineko, It is most profitable to pay off the mortgage ahead of schedule in the first half of the loan term. At first, the borrower pays mostly interest on the loan and quite a bit of the principal debt, that is, a quick repayment of the debt allows you to overpay less for bank services.
At that time, the expert urges not to put the payment of a mortgage in the first place to the detriment of oneself and the interests of the family.
“The choice of an early repayment strategy must be approached consciously – to reduce the debt burden without an extreme decrease in the quality of life”,
– quotes the words of the financier “Rossiyskaya Gazeta”.
For the nine months of 2021 Russians have issued more than 3 million contracts for mortgage lending. Rosreestr noted an increase in the indicator by almost 20% – in 2020, citizens took out 2.7 million mortgages. The average loan term is 20 years. Most often, Muscovites and residents of the region, Krasnodar and St. Petersburg residents buy housing on a long-term loan.
At the same time it was there was an increase in mortgage debt. In May last year, it exceeded 10 trillion rubles for the first time. Three years ago, this figure fluctuated around 3.5 trillion. Experts linked these data with an increase in the number of mortgage agreements concluded against the backdrop of the emergence of preferential lending programs and a general decline in household income during the pandemic.