Reading 8 min. Views 146 Published on 08.11.2018

Over the years of the mortgage "on top" of the loan body, you can overpay the amount equivalent to 1-2 apartments. Therefore, many borrowers seek to repay their debts in full ahead of the contractual date, or at least reduce payments. But how to make an unscheduled settlement with the bank as efficiently as possible? To do this, you need to consider how long it is better to take a mortgage with early repayment in the future, and invest free funds so that they do not settle on the account “idle”.

What does mortgage term mean?

The Bank issues credit funds for a certain period of time, calculated in calendar years. The legal relationship of the parties is fixed by a loan agreement, which specifies the date of commencement and completion of the loan. This period is the period mortgage lending. What to focus on:

• a schedule of monthly payments is provided, it must be completed no later than the established dates;
• changes in the terms and conditions of lending are carried out taking into account the legislative norms and conditions of the mortgage agreement;
• credit obligations must be fulfilled by the end of the contract.

From the point of view of law, a person is considered a borrower and acts as a debtor to a creditor. Russian banks provide mortgage loans for a period of 1 to 30 years, but in practice initial registration Mortgages up to 5 years are rarely used. By duration, several types of mortgage loans are used:

• short-term - 5–10 years;
• medium-term - 11-20 years;
• long-term - 21-30 years.

Gradation is not prescribed by law, but banks actively apply it in practice. Each segment has its own rate range, loan amounts requirements for borrowers. Among Russians, the most popular medium-term mortgage.

What is early loan repayment

This is the introduction additional funds on a mortgage in excess of the standard payment, as a result of which the principal debt (the “body” of the loan) is reduced, the accrued interest and the final overpayment are reduced. The possibility of full or partial early repayment is established by Art. 11 FZ 353 “On consumer credit” (the norms of this law apply to a loan with a mortgage). The borrower must fulfill a number of conditions:

• 30 days to notify the bank of your intention;
• draw up and send a notice taking into account the terms of the contract (sometimes general requirements Civil Code of the Russian Federation);
• pay interest at the rate of the agreement for the use of the repaid amount - from the day the loan is received and until the early payment is credited.

Note! Within 30 calendar days from the date of issue of the mortgage, the borrower has the right to return borrowed funds in whole or in part without additional notices (clause 3, article 11, Federal Law 353). Pay interest on days of use loan funds have to.

What is the best time to get a mortgage?

Definitely "blaming" long-term lending for huge overpayments, and a short period of an unbearable burden on the budget is not worth it. Each borrower has his own life situation, as well as his wishes for a loan. Banking experts have deduced the general features of each term of mortgage lending, and it is worth dwelling on them.

For 5 years

The main advantage of such a mortgage is a relatively small overpayment, reduced rates. The feasibility of the program will make you think:

• unbearable monthly payment;
• the probability of failure even with average incomes;
• risk of delinquency in case of slight deterioration financial position;
• in the event of an unfavorable development of the situation - an avalanche-like increase in debt with the object being put up for auction;

Advice! Taking into account the registration of the collateral and the costs of its insurance, it makes sense to abandon the mortgage in favor of consumer credit(if the amount is small).

For 10 years

Here, a decrease in payment by almost half turns into a moderate increase in overpayment. The credit load is decent, so a 10-year term is better to choose if large financial inflows are expected (maternity capital, state subsidies, sale of cars or real estate). Among the advantages, borrowers will be interested in attractive mortgage rates, additional benefits from developers in new buildings, and a quick reduction in the load on early repayments.

For 15 years

Loan specialists agree that the optimal medium-term mortgage for a borrower with an average salary has the following parameters:

• the milestone of 11–15 years is successful in terms of the size of the monthly payment and a moderate overpayment;
• with 2 workers, the usual way of life does not change, there is money left for large purchases, education and entertainment.

If income allows, you can collect for the early closure of the loan. Banks also have their own interests: their risks are balanced with income.

For 20 years and more

Mortgages are suitable for citizens with low incomes, buyers of expensive real estate. But it’s worth talking not about the benefits, but about the convenience of the program:

• payments are not a heavy burden;
• with a small load it is easier to get out of difficult financial situations;
• payments on loans are allowed up to 65-75 years.

However, if you pull the credit strap for the full term, interest overpayments will amount to 300-400%. In case of early repayments, it is necessary to adjust at least for quarterly surcharges, which is burdensome for the budget.

What borrowers should consider

The main rule of a mortgage loan is to take only what is really necessary for the purchase of housing. You should not include repairs and other “core” expenses in a loan, because the smaller the initial amount, the easier it is to pay off the debt ahead of schedule.

The amount of the down payment

This is a part of the amount of the cost of the apartment, which the borrower pays when applying for a loan from own funds. It is enough to make a deposit of 15-20% to meet the minimum requirements of banks. With the onset of the 2014 crisis, lenders began to offer mortgages without a down payment. But the client's benefit here is illusory:

• the size of the monthly payment increases significantly - a slight deterioration in the financial situation is enough for the appearance of delays;
• you will have to overpay at least 3 times the amount of the principal debt;
• Banks are insured against possible force majeure by raising the rate, which further increases the cost of the loan.

Since 2018, mortgage programs without a client contribution are being phased out. And borrowers only benefit: the debt is less, the interest is lower. If your own payment is 40-50%, a lowering bonus will appear at the rate.

Important! Even if the bank is ready to provide a loan of 100% of the property price, due to the huge costs of monthly payments early repayment mortgages are in question.

Minimum and maximum loan amount

Lenders independently set the minimum and maximum limits, taking into account their own benefit and protection of financial risks. In practice, the mortgage should not be less than 30% of the acquisition appraisal. Since it is unrealistic to find an apartment for less than 1 million on the market (emergency housing does not count), the minimum threshold is from 300 thousand rubles. The final loan amount is determined in one of the following ways:

• 75–85% of the value of the acquired object;
• 75–85% of the market value of the subject of pledge (mortgage encumbrance).

The calculation base is the market valuation of housing by a certified expert. The amount of pre-approval depends on the client's salary and loan term. After the monthly deduction of mandatory payments, including mortgage, a minimum of 40% must remain in the family total income.

Early repayment in the first half of the loan term is more profitable

The reason is in the annuity form of calculations. Unlike a differentiated scheme, payments are unchanged for the entire period. In this case, at first, the lion's share of the payment is interest. By the middle of the term, the bank will receive almost all of the planned income and proceed to the main repayment of client debt. The conclusion is:

• You need to start early payments as soon as possible. By reducing the loan amount initial stage, the client will pay less interest;
• early repayment at a later date will not bring tangible benefits. In this case, it is better to send a contribution to reduce the term of the loan.

When making "early payments", you need to take into account the current payment. On the due date, the bank writes off this money first, then an additional installment. If the amount declared for early repayment is not enough, the funds will remain on the account. Interest will be charged on the full debt, and the client will find out about the problem at the next visit to the lender.

Mortgage calculation with annuity payments for 10 years
Mortgage calculation with differentiated payments for 10 years

Advice! After the expected settlement date, it is worth making sure that the funds on the credit account are fully debited.

Comparative analysis by terms of mortgage lending

Using the example of a housing loan from Sberbank for a secondary apartment worth 2,500,000 rubles, it can be seen - for how long is it more profitable to take a mortgage? Monthly payments and overpayments are directly dependent on the term of the loan.

Mortgage term, years	Down payment,% / rub.	Loan amount, million rubles	Annual rate, %	Monthly payment, rub.	Accrued interest, rub.	Final mortgage payment, rub.	Recommended income, rub.
5	15/375000	2 125 000	10,4	45 045	577 729	2 702 728	65 200
10	15/375000	2 125 000	10,4	27 964	1 230 739	3 355 739	40 800
15	15/375000	2 125 000	10,4	22 706	1 961 996	4 086 996	38 900
20	15/375000	2 125 000	10,4	20 366	2 762 868	4 887 868	35 122
25	15/375000	2 125 000	10,4	19 160	3 623 088	5 748 088	33 188
30	15/375000	2 125 000	10,4	18 492	4 531 961	6 656 961	32 133

For the purity of the experiment, the reduction coefficients for percentages were not used in the calculation. The hypothetical borrower is not a SB payroll client and has agreed to life insurance. It should be borne in mind that in practice the rate depends on the age, financial situation of the borrower, the amount of the loan and installment, and the features of the property.

conclusions

A "short" mortgage attracts with insignificant overpayments and burdens with monthly installments. It is convenient for early repayments, but due to the high credit load, it is recommended for citizens with high incomes. With additional contributions, it is worth thinking about reducing the payment, and only then about the timing.

A “long” loan is not profitable from an economic point of view: with an increase in the term, overpayments increase sharply with a slight decrease in the monthly payment. However, with low earnings, a long-term loan increases the chances of approval. In the future, you can partially repay the debt with small additional installments, reducing the loan term.

Medium-term mortgage is optimal in terms of payments and overpayments, suitable for a wide range of citizens, including borrowers who want to close their debt ahead of schedule. At the same time, at first it is beneficial to reduce the amount of the principal debt, and then move on to reducing the mortgage term.

And most importantly: for any duration of the loan an initial fee must be done to the maximum. It is better to save a little in the future for "early delays" than to send money to the interest "furnace" of the bank.

Loan bondage and the problems of mortgage borrowers are often talked about. For decades, a person has been forced to give up to half of his income, denying himself much. Buying a mortgage apartment at the age of 30, they will be allowed to sell or exchange it only when it is paid last payment. Even a 10% rate in 30 years will turn into an amount 3 times the original debt. Nevertheless, the number of those who want to get a mortgage is not decreasing, despite the crisis, despite the difficulties. If the question arose about the advisability of a loan for housing, then it is time to understand the features of the mortgage, so as not to make a mistake when making a decision.

Multi-million dollar debt or an investment in the future?

The average mortgage borrower is an employed person aged 27-30 who is married and plans to replenish the family. At this age, the career is gaining momentum and tempting prospects are ahead, at the same time, it is difficult to save most of the monthly income in order to save up for housing. At this moment, there is a desire to purchase their own housing and solve the problem “here and now”.

Due to the high risk of non-repayment and repayment problems, banks have tightened mortgage requirements. From loan portfolio banks gradually disappeared offers with zero contribution. Therefore, to apply to the bank, you will first need to accumulate at least a fifth of the cost of housing. Suppose that an apartment is planned to be bought for 2.5 million rubles. This means that the future borrower should have at least half a million available. Putting aside 20 thousand rubles a month for more than 2 years, many people can afford to collect such an amount.

It remains to find a bank that will require a minimum overpayment and agree on the required limit. After interest rate decreased from 15-18% to 6-10%, the overpayment to the bank was halved. If we compare real estate prices, then, despite the fall in the market observed in recent years, the cost has fallen slightly. In an environment where it is difficult to ensure stability and there is no clear understanding of how to protect savings from inflationary depreciation, real estate remains an investment option that can generate income in any situation:

1. Firstly, having bought an apartment, you will not have to spend up to 10-30 thousand rubles a month on rent.
2. Secondly, you can rent out housing and pay off the mortgage without much damage to your personal wallet.

In the first case, the borrower would still spend money on paying for rented housing, and a competent calculation of the mortgage would not lead to a worsening of the financial situation. In the second case mortgage apartment looks like a nice bonus, because after repayment, the borrower acquires full rights to the property, which is not at risk of depreciation. In both cases, the borrower is only required to collect the amount for the installment and further control the repayment process.

As a result, taking a loan of 2 million rubles for 30 years at 10% per annum, the client will overpay the bank 4.3 million rubles. But who said that you will have to pay them yourself when they receive a fee equal to the monthly payment for renting an apartment? Even in a situation where you need housing for a family, you save on rent. You just need to correctly determine the loan term and choose the optimal program.

It is unlikely that a person will think about a mortgage when he is threatened with dismissal or bankruptcy of the enterprise. Thoughts about own housing arise in families with a stable financial position. By taking out a 30-year mortgage at the very start of their career, young borrowers have every chance to increase their income by succeeding in their professional field. Mortgage prepayments are more common than in other types of lending, which means that lifelong bondage is nothing more than a threat to the brave and stubborn.

In order to collect the missing 2 million rubles, it is necessary to set aside 20 thousand rubles for more than 8 years, and it is not a fact that real estate will not rise in price, or there will be no other options for spending funds. When applying for a mortgage at 10% for 20 years, the monthly payment will be the same 20 thousand rubles, which fits into the budget of families with an average income.

The desire to get rid of mortgage obligations and encumbrances makes you look for new sources of income, succeed and achieve impressive results. As a result, many mortgages pay off within the first years of repayments.

Despite self-confidence and determination to quickly pay off the creditor, you should not overestimate yourself. In mortgage matters, it is recommended to be careful and apply for a loan for a longer period. It is better to pay off the debt ahead of schedule than to deal with the debt and pay fines.

It should be taken into account that there are no guarantees that tomorrow you will receive a highly paid position or a conceived business project will bring quick results. Having issued a mortgage for 2 million rubles for 10 years, you will have to pay 26.4 thousand rubles, which will exceed the initial financial capabilities of a person who is used to saving 20 thousand rubles.

Leave room for an alternative

Do not be afraid of 20-year obligations to the bank - it is in your power to reduce this period by early repayment, even when real income does not increase and improvements in the financial situation are not expected. Resourceful borrowers can do a lot, even if the circumstances are not entirely successful.

If the family is replenished, this is not a reason to look for excuses for the fact that the mortgage is not repaid ahead of schedule. The state extends a helping hand in the form maternity capital. After the birth of the second child, within 2-3 months, the issue of directing funds under the family certificate to pay off the existing mortgage in the amount of 453 thousand rubles is resolved. When paying off part of the mortgage in a tranche through the PFR, the payment will decrease by 4-6 thousand rubles (much depends on how quickly the capital is used), which are then sent to create a fund used for a new early repayment.

Putting aside 2-3 thousand rubles a month, within 3-4 years they collect the amount of 72-144 thousand rubles. Make a deposit with replenishment and make a rule to save from each wages the minimum amount. By paying 100 thousand rubles ahead of schedule in 4 years, you can reduce the payment by another 2-3 thousand rubles. Use these funds to increase the fund for early repayment.

In another couple of years, a new early tranche will reduce the payment by another 2-3 thousand rubles. Thus, even in the absence of growth in earnings and other additional income for 10 years, it is possible to halve the mortgage payment.

If the borrower pays income tax, he is entitled to claim tax deduction for 260 thousand rubles for the main mortgage debt and 390 thousand rubles for interest overpayment. Summing up both tax refunds, in the presence of official employment and a “white” salary, they receive up to 450 thousand rubles from the budget.

The return of personal income tax is submitted annually, after the end of the reporting year, until the established limit of payments is exhausted.

If we continue the calculations in the previous example, in 8-10 years it will be possible to deposit another 450 thousand rubles ahead of schedule, reducing the mortgage debt to zero.

There are many examples of how borrowers cope with the credit burden. For example, the use of refinancing at a rate reduced by 2-3 points. This will bring the last payment date forward by a couple of years, but only if the program is used in the first half of the payment period. The fact is that the mortgage involves annuity payment when the lender first takes the accrued interest and only then repays the body of the loan.

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A mortgage is almost the only way for many Russian families to acquire their living space. It belongs to the group of long-term banking products, which is associated with many risks. The average mortgage term reaches 10-15 years.

Since mortgage rates are high, the borrower will have to overpay a fairly decent amount, reaching an average of 1.5-4 of the original loan amount. Most borrowers try to pay off the debt as quickly as possible in order to reduce the overpayment, however, the incomes of many do not allow this to be done quickly, so early repayment often occurs in the last few years, when the principal amount of interest has already been paid. The question arises, for how long is it best to arrange a mortgage, how does the term affect the overpayment, at what time is it best to make partial or full early repayment. Let's consider these points in more detail.

What is the term of a mortgage?

This is a contractually established period of time during which the borrower undertakes to pay a certain amount to repay the debt. The deadline is written in loan agreement, and taking into account the total amount of the overpayment is calculated.

The client has the right to choose the period for which he wants to apply for a mortgage loan, but most often the period is calculated based on the solvency of the borrower. The banking scheme says: "The shorter the term, the less the overpayment." Essentially, this is true statement, but the payment can be large in the short term, which creates the risk of non-payment if the client begins to have financial difficulties. Therefore, even with a stable source of income and its solid amount, you should always play it safe and get a loan with a “temporary reserve” or for a longer period.

If there is enough money, then you can make a partial early repayment, thereby saving on interest, but if the situation turns out unexpectedly, then a small payment will allow the borrower to fulfill his obligations without delay.

What is the best time to get a mortgage?

This question is asked by every mortgage client. The average mortgage term in Russia reaches 10-15 years. According to statistics, it is during this period that many borrowers make mortgage payments. Unlike American or Western clients who pay their mortgage for decades, even passing it on by inheritance, Russians prefer to quickly remove the bonds of debt. The case is related to overpayments - if in the USA mortgage rates do not exceed 1-2% per annum, then in Russia the percentage is not less than 12-15%, which creates huge overpayments even in 20-30 years.

When choosing a term, you should be guided by several rules:

• The risk of being late for short periods is high if an unfavorable financial situation occurs (dismissal, illness, loss of a source of income).
• When applying for long periods (15-30 years), you can repay the loan ahead of schedule with partial installments, reducing the final overpayment. In this case, the payment will be more comfortable, and it will be easier to avoid the risk of delay and a fine.
• Partial early or full early repayment is now in most cases carried out without penalties and commissions. Sometimes a bank may impose a moratorium, for example, it is impossible to partially repay in the first 1-2 years. Usually, at the beginning of payments, almost no one pays off completely (the exception is the owners of the capital or subsidies), so this rule does not bother much.

Overpayment on long and short terms.

Over a long period, the overpayment will definitely be higher, since interest is calculated for each month. Let's look at this with an example:
Mortgage overpayments are calculated using a mortgage calculator.

In the second case, the overpayment will be greater due to the term. However, if you make an early repayment after 5 years from the start of payments, then the overpayment will be more than 600 tr., since the largest interest is calculated in the first half of the term. It turns out that if you borrow for different periods (5 and 15 years), but repay after 5 years, then the overpayment under the agreement with a longer period will be greater, despite the fact that the borrower actually used the loan in the same way in both cases.

Early repayment of a mortgage loan.

Partial or full early repayment is relevant in the first half of the term, when the highest interest is charged. Here it is really beneficial to reduce the amount of the principal debt, since interest is charged on the balance. In the second half, the financial effect of the delay will not be so noticeable. Here, the borrower will receive more moral satisfaction from the end of payments, because. he has already paid the main interest. Consider the situation in the previous example when the loan is repaid ahead of schedule after the first year:

Thus, if the client knows for sure that he will repay the loan in full after some time (for example, he will receive a capital, a subsidy for a young family, etc.), then it is better to immediately apply for a mortgage for a shorter period. However, if the possibility of the RAP appeared unexpectedly, then with a longer period you will have to pay off a larger amount.

It is worth remembering that the desire to “save” must be combined with the possibility of repayments: if the client feels that he can pay off the debt within 10 years, then, of course, you should not take it for 20-30 years. Here you can take something in between, for example, 12-15 years. If the client plans to repay the mortgage in the first 5 years, then it is preferable to choose a mortgage term of 7-10 years.

Solving the housing problem is an urgent problem for many Russians. VTsIOM survey data show that more than 23 million families want to improve their living conditions. The main difficulty that most people face when buying real estate is, of course, its high cost, combined with an income level that hardly allows you to save the required amount within a reasonable time. Thus, the future owner of square meters most often faces the need to use a mortgage to fulfill his dream.

Mortgage today is the main way to purchase a new apartment. For example, in Moscow alone, the share of housing purchased with a mortgage reaches 70%.

Mortgage conditions differ from bank to bank, but, as a rule, depend on one set of variables: type of property, its value, down payment, loan term, characteristics of the solvency of borrowers. Suppose you have decided on the type and cost of the desired apartment and saved up a certain amount for the down payment. With income, everything is quite obvious: the higher it is and the more reliably supported by supporting documents, the sooner bank agree to give you a mortgage. Let's look at the mortgage term for which banks offer to issue a loan.

Long term mortgage involves a loan for 15 - 25 (30) years. The terms of such programs are most often limited only by the borrower reaching retirement age, although some offers on the market allow you to pay a mortgage even in retirement. At first glance, such a long-term loan is intimidating, but it has many advantages. Let's take a look at them.

Benefits of a long term mortgage:

Payment amount. For long term mortgages monthly payment on a loan will be several times less compared to a short-term loan for a similar amount. For example, let's calculate the amount of payment on a loan in the amount of 4,300,000 rubles (the average amount of a mortgage loan in 2016 in Moscow) at 13% per annum for a period of 25 years and 5 years. In the first case, the payment will be 45.279 rubles, in the second - 95.632 rubles. The difference will be 50.353 rubles! The longer the term, the more comfortable the payment for you.

Probability of approval. Each bank has an automatic system for calculating your income / expenses, credit load and possible future expenses. By choosing a long-term mortgage, your financial burden is reduced and you are more likely to get approved for a loan. That is, immediately on scoring there will be a positive answer.

Saving. The main thing you need to understand is that if you take out a long-term mortgage, no one obliges you to pay it all the time. According to statistics, a mortgage is repaid in 4-7 years due to partial early payments. And here lies the main advantage of mortgages for the long term. You receive a comfortable payment acceptable for the family. Even if there are some difficulties, the family will still be able to cope with such a credit burden. And if the family is doing well, then at least every month you can make partial early repayments. And all this amount will go exactly to repay the "body" of the loan, and not interest.

However, by making any additional deposit, you are requesting bank make you a recalculation of the payment, and not a reduction in the term. This allows you to pay without fail even less monthly than you did before. Thus, helping everything that they could accumulate to pay off the principal debt. This makes paying off your mortgage much quicker and easier. You get savings in the form of unpaid interest and at the same time the family is not burdened with huge payments.

Now consider the cons of mortgages for the long term.

As you understand, you will not be able to freely dispose of the acquired living space as long as it is pledged to the bank. This applies to any mortgage term. Therefore, the main disadvantage that borrowers may face is the inconsistency of housing with the needs of the family after some time. For example, a family that bought a “odnushka” mortgage is unlikely to want to stay in this apartment when they have children and grow up. Therefore, the question of changing real estate may arise, which will involve the need to sell the current option under a mortgage. And this will mean collecting a lot of documents and some work with bank managers.

Short term mortgage. Let us now turn to short-term mortgages. These are called loans for a period of 5 to 10 years.

Benefits of a long term mortgage

Saving. If you take a loan for 5 years and a loan for 25 years to compare the interest paid, then of course a loan with a short term will cost you less. But this is only if the long-term mortgage will be paid strictly for all 25 years without a single partial early payment or any change. If a long-term mortgage is repaid early, it often becomes even more profitable than a short-term mortgage.

Disadvantages of long term mortgages

Big monthly payment. The main disadvantage that makes short term loan obviously unattractive for borrowers is the high monthly payment. Each time you have to enter bank lots of money, no way to take a break. By choosing a short term, you put yourself within certain limits and must comply with them.

Probability of bank failure. People often think that it is better to take out a mortgage for a short period of time. Submit an application to bank and get denied credit. Each bank has its own system for assessing the solvency of the client. And even if it seems to you that "nothing, we will stretch out the remaining 15,000 rubles, and we will pay the rest on the loan," then bank will count differently. They calculate all your expenses, lay in money for emergencies, etc. Therefore, most often you should have at least 40% of the total family income after deducting all expenses. So, not all borrowers will get short-term mortgages.

Summing up, it is worth noting that the main thing that a potential borrower should pay attention to is their prospects. Try to analyze how your career, personal life will develop, what unforeseen expenses you may have and how you can deal with them. Mortgage is a serious matter, one can find many examples when insufficient objectivity in assessing one's own capabilities and changing socio-economic conditions played a cruel joke on bank customers. Therefore, it is always better to play it safe and choose a long-term mortgage, which, however, you can always close ahead of schedule.

Bank – « credit organisation which has the exclusive right to exercise in the aggregate the following Bank operations: attracting funds from individuals and legal entities placement of these funds on its own behalf and at its own expense on the terms of repayment, payment, urgency, opening and maintaining bank accounts of individuals and legal entities "(excerpt from federal law No. 395-1 "On banks and banking"). For a mortgage lender, it is important who lends it and under what conditions ((we often met operators in the market who, not being banks, issued mortgage loans). Therefore, it is not so important where to get a loan, it is important on what conditions it is issued (for example, what are the requirements for real estate) and what are the initial payment and the final overpayment. At the same time, you should be wary of various kinds of consumer cooperatives and mutual funds (practice shows that even the most enslaving mortgage is several times better (cheaper) than these forms of lending, so we strongly do not recommend contacting any cooperative companies).