What is a mortgage

According to statistics, in Russia is about 700 thousand mortgage loans per year. And this is due to the fact that the purchase of housing by yourself for cash can handle a few. And with the ever-rising housing prices to save for it becomes almost an impossible task. Therefore, the mortgage is an excellent tool for those wishing to purchase the apartment. However, what it is like and the history of the mortgage, they do not know everything.

A mortgage is a banking product, which is based on the collateral of real estate. Accordingly, if there is no Deposit, that any other product of the Bank, but not the mortgage. Loan history of this kind conducts its count of Ancient Greece. Then the loans received under the pledge of land. To determine that the object is in Deposit, in those days the section has set up a special stone or pillar. Accordingly, it focused, and to re-loan on this site has become impossible.

Mortgage characterized as a loan secured. However, you should understand that not everyone, even the collateral is a mortgage. Under the concept of a mortgage is only the real estate collateral which is public in nature. That is, the transaction must be registered in special bodies, and the documents relating to this object should be marked as "encumbrance".

How does mortgage

Mortgage loan issued by a financial institution in most cases to buy an apartment or home. This happens in cases when the buyer lacks a particular amount of money for the purchase of the property. The missing cash varies from 90% to 10% (depending on the capabilities of the buyer).

Depending on how much money you have as start-up capital, determined and a program where you will have the Bank to lend. Also depend on the interest rate.

A mortgage means that housing is simultaneously in the ownership of the buyer and thus remains the object of pledge for the Bank. That is, the owner in relation to the property there are quite a large number of constraints. For example, sell, trade and perform other real estate transaction only with the permission of the Bank.

Mortgage encumbrance is removed completely after full repayment of the debt to the Bank. At the same time re-registration in the Registration chamber, after which the owner receives documents that have already taken the mark of the encumbrance of the property.

At the conclusion of the contract of mortgage lending the buyer signs all the forms and contracts provided by law when buying real estate: contract of sale, receipts money etc. Unlike ordinary mortgages from the purchase of an apartment that required a procedure of assessment of the dwelling to determine its market value.

Mortgage: pros and cons

On the mortgage goes a lot of rumors and speculation. And not all of them have a real basis. For example, an advantage of mortgage is the fact that housing can be purchased immediately, move into it and live without thinking about renting real estate and not depending on the mood swings of the owners.

When the mortgage apartment or house immediately drawn to the property. That is, your position becomes stronger. In addition, the buyer gets the tax benefits for a certain period. Benefits accrued due to the fact that this type of loan is the target.

All the buyers who are officially employed, are eligible for tax deduction from the purchase charitra. The maximum amount of his - 260 000 roubles.

You should prepare for the fact that a mortgage is a long process and can take about a month, and in some cases even more. It is necessary not only to collect documents, to pay all necessary duties, etc., but also to give them for review to the Bank.