Benchmark lending Mortgage myths domains yahoo mortgage rates nj: Mortgage myths domains yahoo mortgage rates nj
Benchmark lending Mortgage myths domains yahoo mortgage rates nj: Mortgage myths domains yahoo mortgage rates nj: mortgage rates nj The mortgage is still surrounded by set of the most different hearings and fears from which only the small part has under ...
Mortgage myths domains yahoo mortgage rates nj
mortgage rates nj
The mortgage is still surrounded by set of the most different hearings and fears from which only the small part has under itself real soil domains yahoo
8/2/2011
Despite weight of the information in mass-media, the mortgage is still surrounded by set of the most different hearings and fears from which only the small part has under itself real soil. We will disassemble some widespread myths about a mortgage and we will look, how much they correspond to a reality.
1. The borrower hasn't the right to dispose of apartment while it is in pledge at bank.
Among some potential borrowers there is a belief that before full repayment of the credit by the full owner of real estate its buyer, and bank is not. It at all so. The Property right at the mortgage transaction is made out on the borrower. It can freely register in apartment and register in it members of the family. Also it has the right to lease the real estate, or to sell it.
The bank thus remains the holder of the mortgage on apartment which is credit maintenance. It, certainly, imposes certain restrictions on the rights of the borrower. But not the critical. So, the borrower is obliged to notify the creditor that it registers someone on the living space, except members of a family, or plans to lease apartment. But this notice, instead of the request which the bank can refuse. To request of the creditor the permission it is required only in case the borrower is going to do re-planning: to take down interroom partitions, to establish the conditioner, etc. Under the law, to receive the consent to re-planning in Roszhilinspektsii, the owner of apartment is obliged to collect a thick package of the allowing documentation. If the apartment under pledge an obligatory part it is a paper collection becomes also the permission of the creditor. As a rule, if all these changes don't lead to deterioration of a condition of habitation and decrease in its market price, any objections from bank won't follow.
The mortgage apartment can be quite descended, or is presented, as well as any real estate which is in the property. However, together with it to successors will pass also duties under the credit.
2. If the bank has financial difficulties – he can sell the occupied apartments
One of popular beliefs consists that bank have the right to sell real estate of the borrowers autocratically. For example, in case it will have financial difficulties, and he will decide to fill shortage of money.
Actually, the similar deal is possible only in the event that the borrower is the malicious defaulter, and thus doesn't go on contact to bank. But even in this case the creditor can't undertake itself any actions in relation to property of the borrower. At first it should bring an action with the request for collecting imposing against apartment.
If the bank has come to a default, it represents much bigger danger to its investors, than to borrowers.
To provide to itself financing bank it is lawful can at the expense of mortgage sale under the credit. But in this case for the borrower of anything essentially won't change. The new owner of the mortgage hasn't the right to change a condition of the concluded contract. A maximum that can be changed – the address on which payments, and the insurance company are brought. If it occurs, the borrower will receive the corresponding notice: about the new address, or that it is necessary for it to renew the contract with the new insurer. But these changes in any way won't concern the apartment which are in pledge.
In 2009, at the height of crisis, there was a case when one of the big banks, burdened with financial difficulties, has addressed to the borrowers with the request for preschedule repayment of credits. That is, as a matter of fact, has asked them to sell apartments and to return them money. It caused a lot of noise: borrowers of other banks of a steel are afraid of pressure and ultimatums. However the real reasons for fear wasn't. From the creditor it was not requirements, and the request. As employees of bank have underlined. To demand such from the borrower in the absence of delays on payments the creditor haven't the right.
3. Having issued the credit, you are doomed to pay all term it on the same conditions that in the beginning.
Many people, whose possibilities allow to issue the credit already today, prefer to wait for the best conditions. Motivating it with that if now to take the credit, then to change conditions of the mortgage contract it will be already impossible. Also it is necessary to pay under the rate in 11 % when on the average on the market it will fall, for example, to 8 %.
On the one hand, conditions of the credit contract, really, are fixed for all term of crediting. With another, in the market there is such product, as refinancing programs, or recrediting which just assume change of credit conditions. And in process of development of the market and decrease in rates of such programs appears more and more. The competition between banks grows, and the quantity of qualitative borrowers in the market increases not too quickly. Therefore, almost each bank is interested in "enticing" to itself already checked up clients. So, on the eve of crisis when mortgages very quickly grew, refinancing programs have started to offer the majority of participants of the market. And mortgage brokers even have entered separate service – selection of the program of refinancing for borrowers. During crisis the majority of such products has disappeared. But now they again gradually flood the market. However, borrowers should consider that accompanying expenses at recrediting can "eat" all benefit from rate fall. So, from one credit for another it is necessary to dare at transition only when the difference between rates makes not less than 1,5 - 2 %.
4. At gray, and, especially, black income – there is nothing and to think about the credit.
Many borrowers don't try to obtain at all the credit, considering that without the inquiry under the form 2 NDFL and enough large sum of money for an initial payment is it is impossible. So was at the very beginning of development of the mortgage market and in a year after crisis when a part of creditors simply cunningly from the market, and the others – have sharply toughened conditions of delivery of credits.
But now the market revives and comes back to pre-crisis credit conditions. Today banks are again ready to consider acknowledgement of the income by the inquiry in the free form, and also – to give out credits with the minimum initial payment (less than 30 %). There is a number of programs where enough to have on hands of only 10 % from the apartment sum, to receive the mortgage loan. For this purpose to the borrower, in addition to a standard package to insurance, it is necessary to issue also insurance of the responsibility on default, or inadequate execution of the obligations under the contract.
There were lately even the programs assuming a zero initial payment. However, from the point of view of some experts, similar programs – risky enough product both for bank, and for the borrower. Nevertheless, at preservation of economic stability of such possibilities for certain becomes even more.
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