Loan to close mortgage. How to pay off your mortgage faster. Underwater rocks. We pay off the mortgage ahead of schedule correctly

Today, citizens quite often use borrowed funds to solve current problems, because some even have several open loans. Under such conditions, it is quite possible to get a new loan, but whether it is possible to take a mortgage if there is a loan depends on many factors. Let's consider in detail.

Rules for issuing a mortgage if there is a loan

Turning to the law and the rules of large institutions, there is no negative answer to the question of whether it is possible to take out a mortgage with a loan. That is, a refusal only on the basis of the presence of outstanding loans cannot be issued. To receive a positive response from the lender, you must meet the requirements and comply with certain conditions:

• Citizenship, registration. Some institutions refuse to cooperate even with citizens with a temporary document.
• Age. Usually, the limit is from 21 years old, less often from 23-25 ​​years old. The maximum limit is mainly at around 65 years old, but you can also find programs for citizens under 75 years old.
• Permanent place of work. Otherwise, the borrower is unstable and the risks for the lender increase.
• Having an income. Usually, there is no minimum income limit. But on its basis, the ability of the borrower to repay debts is calculated. Play a role and additional funds available to the borrower. And taking a mortgage loan with maternity capital is even easier, because they are allowed to cover both part of the payments and the down payment.
• Credit history. If payments on existing loans are made on time and there are no debts, the bank receives confirmation of the client's decency.

Getting a mortgage with a loan

Thus, taking out a mortgage and a consumer loan is quite affordable if the amount of the client's income allows them to be repaid. The proportionality of the salary and the amount of payments for all loans is assessed by each bank in its own way.

How best to proceed

There is a standard indicator that the borrower can rely on to predict the answer on their own. All loan payments must not exceed 50% of wages.

But even in such a situation, you can always find a way out. For example, you can find an opportunity and pay off one of the loans ahead of schedule, for example, with the nearest expiration date. So, when approving a mortgage, it will no longer be taken into account.

You can also transfer (combine) all loans into one under the refinancing program of the selected bank. At the same time, it is often allowed to increase the loan term in order to reduce the monthly payment. And even get some additional debt. By means of which, you can pay off some other obligations.

What is better to take - a mortgage or a loan

Considering what is better to take - a mortgage or a non-purpose loan, it should be understood that mortgage programs offer lower rates and greater opportunities (amount, terms). If an apartment is being purchased, then a mortgage will be the best option, because. will allow to maximize the terms of repayments - up to 30 years, while consumer loans are given only up to 3-7 years. On a mortgage, it is possible to request up to 80% of the price of housing, and a consumer loan is calculated only on the basis of the borrower's income.

To improve conditions and obtain a larger loan, co-borrowers are usually involved. The spouse is such by default, the rest are optional. It must be remembered that under the mortgage program, the co-borrower has equal rights to own real estate. But whether a co-borrower on a mortgage can take a loan for himself after some time is determined by each bank individually. Usually, the loan is allowed within the limits of his income. The spouse of the mortgage borrower can receive a refusal, because. they have the same family budget.

How to influence the issuance of a mortgage with a loan

In the opposite situation, if the client has been approved for a mortgage, whether it is possible to take out a loan also depends on his income.

Solvency confirmation

But at the same time, you can always find a way to influence the decision of the bank with additional means of confirming solvency:

• Availability of property not burdened with loans, incl. auto;
• Attracting guarantors, whose income is taken into account on an equal basis with the borrower;
• Making a pledge.

There are also separate categories that institutions favor and can make concessions to: depositors, salaries, etc. In any case, it will not be superfluous to apply with a statement and clarify all the possibilities for obtaining a positive answer.

Take out a loan to pay off a mortgage

But is it possible to take a loan to pay off a mortgage, the question is quite serious. Banks do not provide such programs, but the client can use the usual consumer non-purpose loan. Its approval again depends on the level of solvency. If the client wishes to repay the mortgage ahead of schedule with another loan, it is worth mentioning this when submitting the application. Indeed, in such a situation, the monthly mortgage payments do not need to be taken into account in the calculations, and the client’s income should be enough to interact with a new loan. In any case, the decision is made by the institution individually.

Refinancing is a good option to take out a loan to pay off your mortgage. Coordination in this case can be expected with a greater probability, subject to the standard list of requirements. The absence of delays is considered mandatory. The program in the new institution may turn out to be more successful in terms of the rate or allow you to reduce the monthly payment (extending the loan period).

In view of competition, many institutions offer more and more interesting conditions that cannot be compared to those that were, for example, 10 years ago. Therefore, do not refuse to look at new offers, take a mortgage if you have a loan. To get them, and it is recommended to take advantage of refinancing.

Today, many people buy apartments or houses thanks to mortgages. However, the resulting debt forces borrowers to look for ways to quickly pay off a mortgage loan. Consider how to quickly pay off the mortgage and reduce the overpayment, consider what needs to be done at the stage of obtaining a loan. At the end of the article, we will give a step-by-step scheme that you need to follow so that the mortgage payment is as profitable as possible.

Russian law prohibits the collection of fines and commissions for early repayment of a loan. Therefore, each borrower has the right to pay off the mortgage before the deadline specified in the agreement. However, be careful about the terms of early repayment prescribed in the loan agreement. The lender has the right to establish its own procedure for closing the mortgage ahead of time.

As a rule, banks adhere to the following scheme:

• The Borrower notifies 30 days before the date of the next payment of his intention. This period may vary, as specified in the contract.
• The application may be submitted orally or in writing, including by telephone.
• At the same time, the principal amount and accrued interest are paid.

Early repayment is carried out:

• In full - making the amount of the remaining debt and accrued interest in a single payment with the closing of the debt.
• Partially - payment of the next installment in an amount exceeding the amount of the monthly payment.

If you paid off the bank, then the next step is to request an official certificate confirming this fact. This will save you from possible problems and misunderstandings in the future.

What is more profitable to reduce after early repayment: the amount or the term?

It is believed that it is more profitable to shorten the term of the loan. There is a simple math here: the fewer payments you make, the less you overpay. However, in practice it is often the other way around. It is the reduction in the amount of the monthly contribution that brings the greatest benefit.

And that's why:

• Saving some of the funds every month, you can set aside them for early repayment of the mortgage in one amount.
• The same savings will serve as a kind of financial safety cushion, thanks to which you will not have to get into new debts in case of unforeseen situations.
• Psychologically, a smaller payment amount is perceived as a real result and motivates for further actions.

The choice largely depends on the priorities of the borrower and his financial situation. With a stable income and a secure job, you might consider shortening the term. But if earnings are low and unstable, then it is better to reduce monthly contributions.

Which payment to choose - annuity or differentiated?

Credit institutions use 2 schemes for repayment of debt obligations. More often these are annuity payments, but sometimes you can choose a differentiated system.

1. Annuity scheme. The loan repayment schedule consists of equal monthly installments. At the same time, most of the payment is interest, which is charged on the entire loan amount. This option is beneficial to banks, most of which practice only this method of debt repayment. The lender gets the maximum profit while minimizing their risks. For the borrower, such a scheme is unprofitable, but there is nowhere to go. It leads to a large overpayment at the beginning of the term, when the bulk of the payments go to pay interest.
2. Differentiated Schema. The amount of the installment decreases as the loan is repaid. A large share of the payment is the principal debt. The accrued interest decreases every month due to the gradual repayment of the loan. Such a calculation is preferable for the borrower, since it significantly reduces the total amount of the overpayment. But not everything is so clear.

Advantages and disadvantages of each scheme

Differentiated Schema

Advantages:

• A simpler calculation scheme that is understandable to the borrower.
• Minimum overpayment due to debt reduction.
• Smaller contributions at the end of the term, which removes the extra financial burden.

Flaws:

• Premiums in the early months can be prohibitive for low-income families.
• Smaller credit limit that the bank can provide.
• Difficulties with the payment schedule due to the constantly changing amount.

Annuity scheme

Advantages:

• The first payments are equalized with subsequent ones, so they do not hit the family budget so much.
• The lender may offer a larger amount and a longer loan term.
• Less likely to make a mistake with the payment amount, since its value is fixed.

Flaws:

• As a result, the borrower pays almost double the cost of the apartment or house purchased with a mortgage.
• The amount of mandatory contributions does not change over time.

Everyone dreams of quickly throwing off such a financial burden as a mortgage. Here are 8 working tips, following which you can pay off your mortgage loan as soon as possible.

Everything is clear here - the lower the interest rate, the lower the monthly installment. This means that it is possible to set aside part of the funds and direct them to repay the loan body.

Tip 2. Make a big down payment

The same pattern. With a large down payment, the loan amount will decrease, it will be easier to repay. Many banks offer tempting loan programs with no down payment. But it is worth remembering that this increases the debt burden of the family. Therefore, it is wiser to first save up for 1 installment (the more, the better), and then apply for a mortgage for the missing amount.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department at a major bank, with over 500 successfully approved mortgage loans.

In total, when buying real estate worth more than 2 million rubles, the borrower has the right to receive 650,000 rubles back from the state. In this case, for one settlement period (year), the amount equals the total amount of income tax for 12 months.

There are two ways to make a tax deduction:

• In the tax office - the total amount to the specified bank account. Every year, the due amount will be credited to the account until the tax deduction limit (260,000 and 390,000 rubles) is exhausted.
• In the accounting department with official employment - every month the borrower will be credited with the full amount of the salary (excluding personal income tax) within the maximum possible tax deduction limit.

One of the most common ways to pay off a mortgage today. To issue a certificate, you must contact the Pension Fund with the necessary package of documents to confirm your right to use the funds, and then - to a credit institution. With this money, you can partially pay off the existing mortgage or send them to the down payment when applying for a loan.

Like any loan, a mortgage can be refinanced. The procedure consists in obtaining a new loan on more favorable terms in another bank. The loan received is used to pay off the existing mortgage. This process takes a lot of time and is associated with certain expenses. It is necessary to re-evaluate the property, pay the state duty, etc. Therefore, it is important to study the conditions of other banks well before deciding to refinance.

Within the framework of these programs, mortgages are issued at a reduced interest rate and are subsidized at the state level. Young and large families are most likely to use this method. Such social programs can be of federal and regional significance. So, if you have a 2 or subsequent child, you can qualify for a mortgage at 6 percent.

Tip 7: Cut costs, pay more and more often

The principle is simple: spend less - save more. When a decent amount is typed, direct it to partial repayment of the loan.

You can save on:

• Buying unnecessary things.
• Pay utility bills by optimizing the use of resources.
• Products, buying them at wholesale bases.

You can also make payments more frequently than the standard mortgage program. For example, 2 times a month instead of once. This will help reduce the amount of interest charged.

If the property purchased with a mortgage is not the only housing of the borrower, then he can rent it out. The money received from the tenants will be used to pay off the mortgage loan ahead of schedule.

What can be done and what should not?

Here are a few more ways you can pay off your mortgage quickly with extra income:

• Find another job.
• Dismantle cabinets and hand over unnecessary things to a thrift store.
• Monetize your hobby.
• If you have wealthy relatives or friends, then you can borrow part of the amount from them in order to reduce the credit burden and interest payments.

But there are also dubious earning schemes that are best avoided:

• Binary options.
• Lotteries.
• Financial pyramids.
• Any suspicious offers that promise mountains of gold with minimal employment.

1. Do not get hung up on the goal - to pay off the mortgage. Live a full life, because you will pay off the mortgage over time, and the emptiness inside from the lack of other interests and plans may remain.
2. Don't enter austerity if you're not ready for it yet. Such a strict restriction can cause a breakdown and nervous breakdowns. It often ends up being even more wasteful.
3. Do not take out a personal loan to cover part of the mortgage. Interest rates are usually higher for ordinary loans. Therefore, such a scheme for repayment of a secured loan is simply unprofitable.
4. If your financial situation allows, choose a shorter loan period. In this case, the monthly payments will be higher, but the amount of the final overpayment may differ by hundreds of thousands.

conclusions

To pay off your mortgage quickly, consider a repayment strategy before you go to the bank. Weigh all possible options, assess your financial situation and consider any available ways to earn extra money.

Ideally, the step-by-step scheme should be like this:

1. Collect funds for a down payment.
2. Find great deals from lenders with the lowest interest rate.
3. Use all available social programs and subsidies, including maternity capital.
4. Choose a loan program with a shorter repayment period.
5. Keep a family budget economically.
6. Follow the 10% principle - set aside a tenth of each salary to save up the amount for early repayment.
7. Consider possible job opportunities.
8. Find a higher-paying main job or develop professional skills to advance your position.
9. Monetize your hobby - bake cakes to order, sew, knit, sell handmade souvenirs through social networks, create and promote websites, etc.
10. Rent out housing if it is not the only one. As an option - rent out one room or half of the house.
11. Keep an eye on the lending market to find better deals to refinance your current loan.
12. Make a tax deduction and use the proceeds to close the mortgage.

Follow the plan below to get rid of your mortgage as quickly as possible. But do not dwell on this goal, and do not cut yourself in everything, act reasonably and deliberately.

Repayment of a mortgage with a consumer loan is the design of a new banking product- loans for any purpose, with the subsequent transfer to the ownership of housing, for which the borrower receives a loan to pay.

Registration of this product is not possible if the borrower has sufficient solvency to obtain a loan for the amount of the debt. At the same time, the client has the right to decide whether he will apply for a loan at the bank where he pays the mortgage, or whether he will use the services of another lender.

Reference: an analogue of this option is the refinancing of a mortgage loan. This is a reduction in the interest rate on a mortgage due to the registration of a housing loan in another bank.

If the borrower has previously allowed delays in payments or the level of wages does not allow calculating the solvency for obtaining a consumer loan for the amount of the mortgage debt, the bank may refuse to provide the client with this service. Factors that reduce solvency are also:

1. availability of existing loans in other banks (including credit cards);
2. lack of co-borrowers (without a sufficient level of wages);
3. close to retirement age (restriction on the period of repayment of credit funds).

Is this solution beneficial and why?

The consumer amount for repayment of an existing mortgage, as a separate banking product, is not presented in banks. Is it profitable to repay a home loan with such a loan?

The service is an alternative option for quickly getting rid of collateral encumbrance and is beneficial for borrowers who want to make transactions with real estate taken on a mortgage without restrictions in the sale and purchase market.

At the same time, the difference in percentages when applying for a consumer loan is not in favor of the client: 9/10 mortgage loans allow you to purchase housing at a rate of 2-5% lower than the minimum loan terms for any purpose.

When considering whether it is profitable to take a loan to pay off a mortgage, the borrower must decide what is more important for him: to overpay interest on a consumer loan, but not depend on a bank in the real estate market, or to repay a mortgage loan, having a home as collateral.

Reference: clients who took out a loan for real estate without collateral, in 97% of cases do not seek to take out a loan to repay their loan.

What are the conditions and requirements for obtaining?

To take out a loan to repay a loan, the borrower must:

1. Have sufficient solvency to obtain a consumer loan. When calculating the financial position of a client, the presence of an active mortgage loan is a factor that significantly reduces solvency.
2. Provide the bank with documents confirming the target value of obtaining a loan. Loans for refinancing loans in other banks, including mortgage ones, are issued on more favorable terms for the borrower.
3. Be no more than 14 days past due throughout the mortgage loan repayment term, including any outstanding outstanding obligations. The presence of outstanding obligations negatively affects the credit history of the payer.

Banks are willing to provide loans to repay mortgages, provided that at least 1 year is left before the end of the loan term, in exceptional cases (with a loan amount of 300 thousand rubles or more) - at least six months. Otherwise, it is not profitable for the bank to provide a loan, since the interest on the use of borrowed funds for the specified period will not bring the desired profit to the lender.

Under what conditions are money issued in the presence of housing collateral?

How to take this banking product to pay off housing bank obligations? In the presence of a valid mortgage loan, banks are ready to issue a loan to the borrower if the level of its solvency corresponds to the financial parameters that allow obtaining another type of loan.

The term for obtaining a loan can be equal to or longer than the remaining maturity of the mortgage. The schedule depends on the wishes and possibilities of the client: whether he is satisfied with the pre-calculated loan payment, or the borrower wants to reduce the monthly installment by increasing the loan term.

The interest rate depends on the conditions of the bank, while in 99% of cases the borrower will have to overpay when applying for a consumer loan, since Loan conditions for the purchase of housing are much more favorable.

Important: the presence of a mortgage in a creditor bank is not a factor for lowering the consumer loan rate. On the contrary, competing banks often offer more attractive conditions for obtaining a loan to close a mortgage loan.

How to get and what documents are required?

The procedure for obtaining a consumer loan to close a mortgage loan consists of several stages:

1. Choice of lender bank. It is not necessary to apply for a loan from a mortgage lender - other banks may offer better interest rates.
2. Choice of loan program. If the lender does not offer a special loan to pay off the mortgage at reduced rates, it is recommended to look at consumer loans with minimum rates.
3. Collection of documents.

To apply for a consumer loan, you may need:

The main identity document for a bank is a passport. RF. To close a mortgage agreement, you must provide:

1. certificate of the balance of loan debt;
2. account number for transferring funds;
3. loan agreement.

How is the procedure for the return of funds and closing the debt?

After receiving a positive decision on the application, the client receives funds to the specified account. There are 2 options for paying off a mortgage by obtaining a loan:

1. The lender transfers funds to the loan account. The client only needs to apply for and receive a certificate of no debt.
2. The funds are credited to the borrower's account. To close the mortgage, the client must contact the bank branch and file an application for early debiting of funds.

In the first case, the term for closing a mortgage takes no more than 3 days: the funds are transferred directly to the loan account, then the client is issued a certificate stating that there is no debt. The term for removing the encumbrance takes up to 30 days - the borrower is issued an extract from the bank, with which you should contact the MFC for subsequent paperwork.

In the second case, you need to wait for the service to be completed (up to a day), then get a certificate and wait for an extract to remove the encumbrance.

Reference: if the client has issued a non-targeted loan, he is not required to submit certificates of transfer of credit funds. In other cases, it is necessary to bring a document on the absence of debt with the seal and signature of a bank employee to the new creditor, or provide an extract on the receipt of funds to the mortgage account.

Advantages and disadvantages

To understand whether it is profitable to repay a loan with such a loan, the borrower must evaluate the advantages and disadvantages of this solution. Benefits of repaying a home loan with a new loan:

1. The client closes mortgage obligations. The apartment, subject to the subsequent removal of the encumbrance, completely becomes his property.
2. The absence of a valid mortgage allows the borrower to apply (if necessary) for the purchase of a new home.
3. If desired, and if there are offers from the bank, the client can repeatedly refinance consumer loans, reducing the overpayment, unlike mortgages.

But making a loan with the subsequent transfer of funds to a mortgage loan account is not always beneficial for the client:

1. If less than 1 year is left before the end of the loan period, the bank may refuse to receive a loan.
2. The overpayment on a consumer loan is much higher than on a mortgage, since the interest rate on ordinary loans is at least 2% higher than the conditions on home loans.
3. Obtaining a loan to close a mortgage is an additional banking product, for which the borrower must meet the requirements of the lender. A new loan application entails the collection of documents and (if the lending is targeted) reporting.

What problems might arise?

When applying for a new loan, the client may experience unexpected difficulties:

• Denial of a loan. The reasons may be a bad credit history, insufficient solvency, non-compliance with the requirements of the bank (loan term or amount).
• Increase in the term of the transaction: long-term receipt of funds from the creditor, delay in early repayment, receipt of an extract on the removal of encumbrance for a period of more than 45 days, and so on.
• Additional financial losses: registration of insurance, payment of state duty.

To avoid possible problems and delays, it is recommended to choose reliable banks for obtaining a loan and control the process of repaying a loan and obtaining certificates, for example, tracking the status of a mortgage in an online account. In case of violations of the deadline for obtaining documents for more than 3 days, it is recommended to notify the bank manager or state employee. services for subsequent verification of the correctness of the compilation and maintenance of the process.

Repaying the mortgage with a new loan allows the client to become a full owner of the home in 30 days. The service is beneficial for borrowers with small loan amounts and those whose solvency is not in doubt with the bank. The client has the right to choose: to get a loan from another bank or use the services of a mortgage lender.

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Simultaneously reduce the payment and shorten the term

I have a mortgage for 10 years, but I plan to pay it off in five.

Maxim Kainer

pay off mortgage for four years

When I started early repayment, I asked the bank to calculate options for reducing the term and reducing the payment: I wanted to understand how to pay more profitably. The employee replied that he could not make exact calculations. I had to figure it out myself. It's good that I did it.

What will you learn

An example on which we will analyze

Mortgage for 10 years, issued in October 2013. The loan amount is 1.1 million rubles. The rate is 11.9%. Monthly payment - 15 719 R.

Suppose, in May 2017, 400,000 R appear, which can be deposited to repay a mortgage loan ahead of schedule.

How to pay off a mortgage profitably

1. Don't overpay in the form of fees or late fees.
2. Check that the contract allows you to make regular payments for partial early repayment.
3. Make sure that the monthly partial early repayment does not make the process more expensive due to some terms of the contract.
4. Find out at the bank whether it is possible to pay off the mortgage ahead of schedule without going to the branch so that you do not have to fill out paper applications every month.
5. Choose a reduction in the amount of the monthly payment, rather than a reduction in the term. The article will tell you why.
6. Continue to make the amount of the initial payment every month, as if you did not reduce it.

What is better to reduce: term or payment

The bank advised me and all my mortgage friends to shorten the term, because with this option the amount of the overpayment is reduced. It works on any amount: at least 400,000 rubles, at least 25,000.

You shorten the term - you have a smaller overpayment on the loan. That's what the credit calendar says. Here is a comparison board.

I deposited 400,000 R early, what's next

No early repayments

Overpay

786 139 Р

Payment after May 2017

15 719 Р

Last payment due date

October 2023

Last payment amount

15 578 R

We shorten the term

Overpay

498 754 R

Payment after May 2017

15 719 Р

Last payment due date

March 2020

Last payment amount

4110 R

We reduce the payment

Overpay

612 239 R

Payment after May 2017

8261 R

Last payment due date

October 2023

Last payment amount

8486 R

But the bank does not take into account that after reducing the minimum payment, the borrower can continue to pay the same amount that he paid before. This is the whole secret: for early repayment, you need to reduce the payment, but continue to pay more. Then the amount of each next mandatory payment will be less and less and at some point you will have enough money to close the debt completely ahead of schedule.

In our example, for early repayment of a mortgage loan, you must continue to make every month 15,719 R, despite the fact that the new payment after its reduction amounted to 8,261 R. And so you need to continue to do: each time deposit 15,720 R and each time choose early repayment.

How do I pay off my mortgage early?

Conventional Method

Minimum payment: 15 720 R

We bring additional money: 400 000 R

We shorten the time. The minimum payment remained 15 720 R

We continue to contribute 15 720 R. The minimum payment does not change

The loan will close in March 2020.

Maxim Keiner method

Minimum payment: 15 720 R

We bring additional money: 400 000 R

We reduce the minimum payment. Now he is 8261 Р

We continue to contribute 15 720 R. Reduce the minimum payment every month

In March 2020, the minimum payment will be 115 R. We deposit 4109 R and pay off the balance of the debt

In total: you pay as if you were reducing the term, but in fact you reduce the minimum payment.

Why such difficulties

This method of early repayment is only for one thing: to reduce risk in the future. See.

When I choose to reduce the mortgage term, I tell the bank: “I want to continue paying these 15 thousand rubles, but so that it ends faster.” That is, I promise the bank that the rest of the time I will continue to pay 15 thousand. My minimum payment is always 15 thousand, even if I lose my job or go on vacation. Yes, my term is being reduced, but I have to pay the maximum for this entire term.

When I lower my payment, I lower my monthly debt burden. Every month I owe the bank less and less money. But while I have the opportunity, I choose early repayment: I pay more and reduce the debt burden again.

As long as I have the ability to pay the full 15,000, I will not feel the difference between regular and early repayment. I pay the same amount all the time. But if, for example, I lose my job or go on vacation and can no longer pay 15 thousand, it will no longer be so scary for me: by that time, my minimum payment will be greatly reduced. For example, in April 2018, the minimum payment amount will be about 6,700 rubles, and in May 2019 - about 3,700 rubles.

If I have a hard time, I can put the early repayments on hold and go back to paying on schedule. For example, if my income decreases in May 2019, I will simply continue to pay my 3,700 rubles until the situation improves. I will pay the rent longer, but it will not be so hard.

I understand that this is difficult to understand in the text, so I prepared a tablet for you. There are four mortgage repayment options, mine is the last one. Scroll down to the AR column where I deposit 400K early and watch the math magic.

This is where the magic begins

Remember that advice on the Internet should not be taken as a guide to action. When applying for a mortgage, always read the contract, carefully study the payment schedule and build spreadsheets in Excel. There is nothing more reliable than a self-made early repayment schedule.

Read the contract

This is written in the contract:

If there is something wrong with your contract, check with your bank that there are no obstacles to regular partial early repayment.

Make payments convenient

Prepare the infrastructure. Every time I make a payment and want to write off the overpayment as an early repayment, I need to apply for a partial early repayment. In the first months, I went to the bank, took the cash and made a written application for early repayment. These are extra transaction costs.

To exclude them, I started a creditor bank card tied to a mortgage account. A salary from one of my employers falls on this card. According to the terms of service, if more than 10,000 rubles pass through the account, then you do not need to pay for the card.

Remember

Before you start paying out under my scheme, make sure that you can do everything so that the monthly partial early repayment is convenient and does not make the process more expensive.

See that the agreement allows you to regularly make payments for partial early repayment, and then completely close the loan.

Ask your bank how to make early repayment convenient so that you don’t have to go to the branch every month and fill out paper applications.

Happy minimum payments.

Last update:  12/28/2019

Hello! Please tell me how to get rid of the mortgage? My husband and I took out a mortgage loan for an apartment at a time when we had high incomes. I am currently unemployed and my husband's salary has been reduced. Plus, our expenses have increased due to the addition to the family. This made paying the mortgage very difficult.

Maria, Sevastopol.

(or mortgage) is a type of long-term loan in which money is issued with the registration of real estate or land as a pledge.

Long loan periods and large amounts form a serious financial burden for several years or even decades. Over such a long period of time, the life situation of the borrower can change radically.

Most importantly, various life events can negatively affect the level of its solvency. In such a situation, making mortgage payments becomes difficult.

There are several situations when a borrower decides to get rid of a mortgage:

• On the one side , debtors dream of repaying the loan faster and withdrawing property from collateral.
• On the other side , a considerable number of borrowers find themselves in a situation where it becomes too difficult for them to service a loan on existing terms.

Regardless of the motivating reasons, the borrower should know how best to get rid of a mortgage loan.

What are the goals and objectives set by debtors-borrowers, getting rid of the mortgage

Not everyone understands, but it is often much easier to get rid of the mortgage burden than from. However, everything is determined primarily by the goals and objectives that the borrower seeks to achieve.

Most often, mortgage borrowers set the following goals for themselves:

1. Keep the collateral in the property, but at the same time achieve changes in the terms of the mortgage agreement. This will help to reduce the credit burden and service the loan on more favorable terms.
2. Maintain ownership of real estate or land and independently achieve a reduction in credit burden. This can be achieved with .
3. Pay off your mortgage as soon as possible. At the same time, it does not matter to the borrower whether the subject of collateral remains in his property.

At its core, a mortgage is a fairly complex form of lending. Such a loan includes two types of legal relations: about the subject of collateral and directly about the loan. These two parts are connected, therefore, the goals that the borrower sets in relation to them when deciding to get rid of the mortgage also depend on each other.

In most cases, you have to choose save or not ownership of the collateral. It depends on the decision taken what measures to take in the current situation.

The easiest way to get rid of a mortgage loan is if the borrower is ready to lose the collateral. In this case, it is the property that will be able to ensure the fulfillment of obligations.

Before proceeding with the choice of a method of exemption from credit obligations, should pay attention opportunity to resolve this issue with insurance . Most borrowers take out a life and health insurance policy. Moreover, some of them take out liability insurance, including about situations of job loss or income reduction .

Insurance payments can help the borrower pay off all or at least part of the mortgage. If the policy was not issued, or the debtor's situation is not an insured event, you will have to look for another way to solve the problem.

Legal ways to get rid of a mortgage

How to get rid of a mortgage loan - 4 proven ways 📌

The method of release from a mortgage loan is determined primarily by the attitude of the borrower to the collateral. Therefore, the options are divided on groups exactly depending on that.

1) There is a need to preserve property

Method 1. Mortgage restructuring

If a decision is made to restructure, you should contact the credit institution with an application.

The application for debt restructuring shall reflect:

• reasons that prevent you from repaying a mortgage loan on existing terms;
• documentary evidence of the circumstances;
• expresses a desire to arrange restructuring.

When the application is considered by the creditor, he will make a decision and offer options for getting out of this situation:

1. during a certain period, the borrower repays only interest, the principal debt is frozen;
2. increasing the term of the mortgage and reducing the size of the monthly payment;
3. interest rate reduction.

The options presented are not exhaustive. Lenders develop individual terms of restructuring that correspond to the current situation and take into account the position of the borrower now and in the future regarding his financial well-being.

📎 Details about - in our special publication.

Method 2. Refinancing

Refinancing is suitable for those borrowers who took out a mortgage several years ago, when the rate was much higher. Today, most major banks offer similar programs. They are renegotiating the terms of the mortgage, lowering the rate.

However, with such a solution to the issue, the presence and size of overdue debts is of great importance. First, in order to obtain refinancing, you should contact the lender through which the mortgage loan was received. If he refuses, you can go to another credit institution.

Read about how it happens in one of our articles.

2) It is not planned to keep the collateral property

If it is not important for the borrower to preserve property, you can use other methods to free yourself from debt:

Method 3. Sale of real estate or land

Before selling collateral, you must obtain bank permission. At the expense of the funds received from the sale, the mortgage will be repaid.

When deciding to sell the property, you will have to obtain the consent of the bank. There are two options: the borrower himself is engaged in the sale of property or the lender organizes the sale with the permission of the client. In any case, the bank necessarily controls the transaction.

About that, we wrote in a previous article.

Method 4. Transfer of mortgage debt to another borrower

In such a situation, the first thing to do is to bank consent who issued the mortgage. The creditor checks the new client in the same way as the primary debtor.

Often, the primary borrower is not removed from the mortgage relationship. In accordance with the terms of the amended contract, this customer is responsible solidary or subsidiary liability on loan.

Regarding the object of pledge, the issue is resolved in accordance with the agreement between the borrower and the bank. In most cases, the scheme of such transactions is developed individually . After that, all conditions are agreed between all participants in the transaction. However, the opinion of the creditor bank will still be the main one.

Most often, real estate relations are resolved by one of the following options:

1. collateral is retained by the primary borrower;
2. property, upon obtaining the consent of the creditor, passes to a new debtor, remains pledged. In this case, the primary borrower is released from any obligations to the lender.

Take note! Often, borrowers try to get rid of the mortgage by renting out the property. The payments received from tenants are then used as loan payments.

However, to draw up a lease agreement, you must obtain the consent of the bank. But often debtors ignore this requirement, negotiating with the tenant exclusively orally. Or they enter into a lease, hoping that the bank will not cancel it. In any case, renting a mortgaged apartment - not the best option .

As a conclusion, we present to your attention short table , which contains possible ways to release from the mortgage.

The site team hopes to have been able to answer your question. If you have any new ones - ask them in the comments below. See you soon!