Why mortgage for the long term - it is normal

Why are we afraid of long-term mortgages

Mortgage - a long-term loan for housing. MinimumMortgages in Russian banks period - 1 year, maximum - 30 years. As with any loan, the mortgage - this is an overpayment. Bank gives money to the debt and takes for this interest. The longer a person uses these funds, the greater the percentage fee. In the case of mortgage it turns out that we use the bank's money 20-30 years, so the overpayment beyond catastrophic.

For example, take the sum of 2.4 million rubles. Interest rate - 9.2%.

When the mortgage is 20 years, the payment will be 21 904 rubles, and overpayment - 2,856,000 rubles, or more than the amount that we have taken a loan initially.

Place a table in their numbers to see how long the better to get a mortgage. Calculate the amount of payments can be in any mortgage calculator - for example,

here.

In this case, the payment on the mortgage for 20 years is different from payment, calculated at 30 years, only 2246 rubles, and overpayment - more to 2.643 million rubles. During these 10 years, you will be given 264 000 per year, or 22,000 a month - for unjustified price difference in 2246 rubles.

Why it's not as scary as it seems

At first glance, the long-term mortgage - this is bondage for life. For their own square meters you need each month to pay a substantial part of salary - and do it for 20-30 years. And as a result the bank will receive two to three times more than was originally issued. However, if you look, it's not so scary.

You choose comfortable payment

Mortgages in the long term allows you to keep your lifestyle and move to austerity mode. Due to the fact that you take a loan for 20-30 years, the monthly payment will be very large. its amount will be even less than the cost of renting an apartment for the residents of large cities.

For example, you bought a flats 3 million rubles. Down payment - 600 thousand, and the rest took a mortgage at 9.2% per annum. If you take a loan for 10 years, the payment will be 30 663 rubles, and if 20 years - 21 904 rubles. It turns out almost 9000 less.

Reduces the risk of late payment

The most dreaded question for those who takes a mortgage, "Will there be enough money in my pay her?" Many live in hope, that a couple of months will be easier, but the situation in the country is such that prices are rising and wages - no. And if it is difficult to pay today, then tomorrow will be even more difficult. Therefore, if one is not sure that pull large payments, it is better to err.

With a mortgage on the long term do not you run the risk of: 20,000 to pay easier than 30. In the case of force majeure, it will be easier to find the money.

And if wages still will increase, payment will be even less strain. For example, you will receive 40 thousand rubles, and gave a mortgage 21 900 - more than half of the salary. A year later, you will have gained experience and began to receive 55 thousand, and the payment of loan I remained the same - 21 900 rubles.

You can ahead of time to extinguish the mortgage

A relatively small monthly payment leaves room for maneuver when there is free money, you can put out the mortgage early. For example, if you received the award, we found second jobs or you raised the salary. Early payments are for debt repayment rather than interest on it, so you will give the loan faster and less overpay bank.

There are two early repayment strategy: reduction of time or payment. In the first case, you will pay off the debt in the second - with each month will give the bank less. It is impossible to say which strategy is more profitable: it is necessary to do the calculations for a particular loan and see which option is better for you.

Let's see how the overpayment will be reduced by choosing a strategy to reduce the term. Take for example all the same 2.4 million rubles for 20 years. That's what happens if you make a prepayment:

• One early payment. At the end of the year you give thirteenth salary - 40 thousand rubles. You direct the money to pay off the mortgage. such payment save you 187,000 overpayment and reduce the loan term is 11 months.
• 10 payments of 20 000 over 5 years. From time to time you have free money. You make 10 pre-term payment of 20 thousand rubles in the first 5 years of the mortgage. It will save you 635,000 rubles and reduce loan term longer than 3 years.
• 10 payments of 40 000 over 10 years. 10 years in a row you put the thirteenth salary - 40 thousand rubles - to the early repayment. This will save 884 thousand rubles and reduce loan term of 5 years.

Calculate how much you will save on early repayment, you can here. And also be sure to read our article about which strategy to choose to pay a bank loan faster.

Inflation devalues ​​your debt

Speaking of huge overpayment, do not forget about inflation - the devaluation of money. 20 years ago, a loaf of bread can be bought for 7Average consumer prices for goods and services - the Federal State Statistics Service rubles, now - for 27 and 10 years - of the conditional 47 rubles.

Nothing good is not inflation, but in the case of a mortgage it to you just at hand: prices are rising, wages are indexed, your apartment is going up in the real estate market, and the payment on your mortgage does not change.

In 2029, you will repay the bank at prices in 2019, even if the money is so worthless that they only bread can be bought.

No one can say exactly what will inflation in 5-10 years. From 2010 to 2018 it amounted to 64.3%The rate of inflation in the Russian Federation. If these rates continue, in 10 years your apartment for 3 million will cost almost 5 million in 15 years - 6.6 million rubles, and in 20 years - more than 10 million.

If the inflation rate will decline, will become cheaperCentral Bank has called the conditions reduce mortgage rates to 8% and loans. In this situation, you can do refinancing mortgage - the bank will lower your interest rate.

Provide advance to in the mortgage agreement was not a ban or a fine for refinancing. Then you can safely go on more favorable terms if they appear.

David Sharkovskii controlling Russian branch Financer.com

You will be able to buy an apartment is better and more

The bank is more likely to approve a mortgage for a long time, than short. For him it is more profitable you will be given credit for longer and to pay more interest. In addition, since the bank is reinsured: the borrower is easier to put out small payments, which means that there will be no delinquencies.

For long-term lending bank is also likely to approve a loan for a large sum. The reason is simple: the mortgage amount depends on the size of the payer of income. It is calculated so that the monthly payment does not exceedFactor "payment / income" 40-60% of total revenue. Accordingly, the longer the term of the mortgage and the smaller the size of the payment, the greater the amount the bank will approve.

Long-term mortgage allows you to take credit for a large sum and buy an apartment larger area or in a more comfortable area.

Ivan Lonkin, Head of Client Relations Management "SDM"

For example, a family of two people with an income of 150 thousand rubles per month can get a mortgage for 5 years - bank approve them credit in the amount of 2.5 million rubles. If we consider the same family for a loan for 25 years, the bank will approve more than 6 million.