Borrow or not to take
Want to compare annuity lead and classic credit. Which one is more advantageous to the borrower?
In developed countries the most part, virtually 100% of real estate purchased on credit. We are also experiencing a rapid growth in mortgage lending. In most cases, this increase is not due to the purchase of new housing, and are usually due to the desire of people to improve their living conditions: moving to a more prestigious area, buy an apartment, a large area. In recent years, increased substantially the volume of lending for the purchase of land and country houses. Because often the following happens: we take no credit for the full amount of the price of new housing, but on balance that is needed after the sell back home.
Mortgage - a term that first appeared in VI. Mr. er. in Ancient Greece. The ancient Greeks called both the debtor to the creditor of his land. At the turn of the borrower's land established post, which was the inscription that the land is mortgaged. This method is called and the mortgage, which translated from Greek means "stand", "backup". Centuries have passed, but the meaning of the word remains the original: mortgage - this loan, as collateral that supports land and real estate.
Most often, mortgage loans are taking young families who just need its own separate housing. And banks are prone to lend just the younger people because they are energetic, needed in the labor market, and get a good salary. Tell you about the pros and cons of a mortgage loan.
Pros:
1. New housing purchased on credit, becomes the property of the borrower. The bank pays the seller, and only then you can celebrate a housewarming.
2. By law, if there is early repayment, the bank (lender) has no right to bring a penalty, then there is a loan may be repaid ahead of schedule partially or fully repay fully even when. And interest rates will certainly there are only a residual amount of the loan.
3. The cost of real estate is constantly growing, the money also have the ability to depreciate, hence the purchase of housing loans - this is a very reasonable investment.
4. If after a time interest rates on loans for housing will decline, it is possible to refinance - to transfer credit in other banks.
5. Payment for rent apartment almost equal to the monthly loan payments. It should only take into account that in the latter case, a man gives money not <Uncle> but pays for his apartment.
Cons:
1. Very high cost. In the West, credit worth 5 - 7% per annum, we have 11 - 15%. This is strongly reflected in his pocket lender. Over the years, 15ti is overpaid, which would be to buy another apartment (the only amendment, unknown amount of inflation during this time).
2. Moral discomfort due to a sense of duty, though, to say honestly, it is somewhat offset by the joy of ownership of their apartment.
3. Looking for big profits, which are official. Although it should be noted that banks take into consideration <informal>, but not more than 100% of the official.
To summarize, if you need housing, and have an income, then we can consider a loan as an option. And if they took credit watch carefully for interest rates in the market to refinance at the event.
Want to compare annuity lead and classic credit. Which one is more advantageous to the borrower?
In developed countries the most part, virtually 100% of real estate purchased on credit. We are also experiencing a rapid growth in mortgage lending. In most cases, this increase is not due to the purchase of new housing, and are usually due to the desire of people to improve their living conditions: moving to a more prestigious area, buy an apartment, a large area. In recent years, increased substantially the volume of lending for the purchase of land and country houses. Because often the following happens: we take no credit for the full amount of the price of new housing, but on balance that is needed after the sell back home.
Mortgage - a term that first appeared in VI. Mr. er. in Ancient Greece. The ancient Greeks called both the debtor to the creditor of his land. At the turn of the borrower's land established post, which was the inscription that the land is mortgaged. This method is called and the mortgage, which translated from Greek means "stand", "backup". Centuries have passed, but the meaning of the word remains the original: mortgage - this loan, as collateral that supports land and real estate.
Most often, mortgage loans are taking young families who just need its own separate housing. And banks are prone to lend just the younger people because they are energetic, needed in the labor market, and get a good salary. Tell you about the pros and cons of a mortgage loan.
Pros:
1. New housing purchased on credit, becomes the property of the borrower. The bank pays the seller, and only then you can celebrate a housewarming.
2. By law, if there is early repayment, the bank (lender) has no right to bring a penalty, then there is a loan may be repaid ahead of schedule partially or fully repay fully even when. And interest rates will certainly there are only a residual amount of the loan.
3. The cost of real estate is constantly growing, the money also have the ability to depreciate, hence the purchase of housing loans - this is a very reasonable investment.
4. If after a time interest rates on loans for housing will decline, it is possible to refinance - to transfer credit in other banks.
5. Payment for rent apartment almost equal to the monthly loan payments. It should only take into account that in the latter case, a man gives money not <Uncle> but pays for his apartment.
Cons:
1. Very high cost. In the West, credit worth 5 - 7% per annum, we have 11 - 15%. This is strongly reflected in his pocket lender. Over the years, 15ti is overpaid, which would be to buy another apartment (the only amendment, unknown amount of inflation during this time).
2. Moral discomfort due to a sense of duty, though, to say honestly, it is somewhat offset by the joy of ownership of their apartment.
3. Looking for big profits, which are official. Although it should be noted that banks take into consideration <informal>, but not more than 100% of the official.
To summarize, if you need housing, and have an income, then we can consider a loan as an option. And if they took credit watch carefully for interest rates in the market to refinance at the event.
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