Pros and cons of mortgages. Mortgage or rental of housing

by texasnews

Of course, solving the problem with the living space for every house in need of housing has not become cheaper or more affordable. But this question for many remains one of the most important in life and requires not only constant and more than average income, but also courage and knowledge, for adoption, such a responsible step as renting housing, or more seriously, draw up a mortgage loan.

To date, experts can say with confidence about the difference in the benefits between rental payments and mortgage rates. Thanks to new trends in the real estate market that have appeared recently, you can at least alleviate this issue to some extent and confidently make a difficult decision, getting rid of the problem with the living space and buy a new MAC, by the way, if the repair of MacBook found cheaply on the site.

These trends are considered to be a serious demarcation of housing, both when buying and selling and when renting. Also reducing interest on mortgage lending. Now mortgage rates are much lower than before the economic crisis, which is able to reduce the total cost of the apartment.

Pros of mortgages.

1) First of all, it is worth noting that the promise given by the government, to reduce the percentage rates of mortgage lending, was executed and continues to be executed, as a further decrease is expected. At the same time, banks, revising this situation, came to the conclusion that they are not beneficial to increased rates, but so to say, a quantitative advantage, that is, to attract more customers, which in turn contributed to a decrease in the interest rate.

2) Secondly, the authorities forced bankers to disclose all hidden payments, commissions and all kinds of “underwater stones” of credit agreements. And also, for customers who have confirmed their solvency, there is an opportunity to issue a loan at a reduced interest rate. Also for those who are ready to pay more than 50% of the cost of housing, take a mortgage for no more than 12 years and choose a foreign exchange form of payment, a mortgage will be profitable.

The one that has a differentiated rate is considered a profitable mortgage, that is, the amount of payment every month becomes less and when it is allowed to pay more than the amount specified in the contract. Of course, it is impossible to compare all the above points that are beneficial for the borrower, but at least uniting at least three of them, you can save from 2 to 5%, despite the fact that, the credit rates themselves have already been reduced by an average of 2 – 3%.

However, rent is suitable if you live a short period of time in this place.

The cons of the mortgage.

And as for the rent, so every year, or even several times a year, it continues to grow, and the owner remains with the housing. At the same time, it is important to note dependence on unauthorized persons, frequent crossings and other household troubles. But with all these disadvantages, we must not forget about the long -term debt pit and the risk that the bank’s client goes to, having issued a mortgage loan. Therefore, having weighed all the pros and cons, each person who needs housing must, soberly assessing the situation, decide for himself that it is more profitable to rent or mortgage.

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