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    Perfections for the Best Mortgage Plans Now

    Expensive housing has become a byword, but in light of the difficult economic events, the acquisition of its own corner has become an even more vague prospect. Literally a year ago, the mortgage would have been cheaper at times. Then, the average interest on the loan was 12 percent. Now the banks are targeting 17% or more. Nevertheless, everyone has a real opportunity to reduce the amount of possible payments.

    It starts with an analysis of the interest rate. At one time the choice of the author of the material fell on him. So, we want to buy an apartment in the secondary housing market worth 3,700,000 dollars (this is how much the author gave for housing two years ago).The interest rate that a bank can give you depends on several parameters. Now in the “bare” calculation we have to pay 47,133.01 dollars a month. The mortgage broker GeelongĀ cares to answer all your queries regarding the same.

    Banks are not allowed to issue mortgages if the income is less than 70% of the amount of payments.

    How much should this citizen receive?

    • Term – 15 years. Why fifteen? In many calculations, this is the optimal time frame, allowing you to live several difficult years in the hope of inflation, and then breathe more freely.
    • First of all, it makes sense to become a participant in a salary project. Speaking in a simple way – to receive a salary on the card from the bank from which you are going to take a loan. Becoming such, you can expect to lower the rate of half a percent, which in terms of very considerable money.
    • The second way to lower the rate is to arrange insurance in the same bank. Here you have nothing to lose, because under the new legislation you still have to arrange insurance. So, by the first two simple manipulations, we have reduced our interest rate, and hence the amount of payments to 43,990.58 dollars per month.
    • The third loophole for lowering the interest rate may be a large initial deposit. Now the threshold of a minimum down payment is 20% of the cost of housing. That is, if the cost of your apartment is 3 700 000, then in order to qualify for a mortgage, you should have 740 000 dollars in your hands.
    • The most interesting begins with a threshold of 30%. Let’s say you have 1,100,000. For this amount, you can claim (as a participant in a salary project, making insurance in the same bank) for a mortgage with monthly payments of 38,640.37 dollars. But if you find ten thousand for a contribution, then you will already pay 38,039.35. As the percentage of the initial installment has increased, which means that the interest rate has changed?

    The difference is more than 10 000 dollars with the first picture

    In the future, such a jump will occur when reaching 50% or more, but in our conditions, you can seriously look at the range of 30% – 50% of the initial contribution.

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