As is generally known, one of main constituents of the American dream I am not that another, as an own house. It is not a secret that the United States of America are included in the list of the most advantageous countries in area of crediting an in particular mortgage. Subzero interest rate on credits, loyal attitudes toward borrowers and high standard of living in a country, allow to Americans to take credits, not beginning to think about the multiannual burden of his redemption.
Foremost let us understand the concepts of mortgage, mortgage crediting and credit on the security the real estate.
Wishing to purchase a house, and not having the financial opportunity on it, you set forth for a bank after a having a special purpose credit - on the purchase of the real estate. In this case a house, as mortgage, comes forward a mortgage jar for allotted credit to you on his purchase, or on the purchase of other accommodation in gage of your real estate. During registration of such transaction, the object of mortgage will be officially brought in the register of rights on the real estate, and information about status of the real estate «under a mortgage» will become public. Before complete redemption by you credit, the real estate documentarily will belong to the mortgagee - bank, and formally to you. A mortgage loan is a variety of credit at which monetary resources are given on the purchase of the real estate.
Bank transaction in a grant to you consumer credit, for example, on the purchase of machine, in gage of your real estate (the owner of which you are), it will be considered a «credit on the security the real estate».
The average market cost of five-room house is varied in the different states from 60 to 150 thousand dollars (read: the Average cost of the real estate in the USA). Not looking on moderate enough prices on an accommodation, many Americans, not wishing to lay out single payment the sum of cost of the real estate, take a mortgage for a term of 30. It gives an opportunity monthly to give minimum part of the profits on credit redemption, and to be not in the conditions of hard economy. Certainly, in an aggregate, the sum paid on percents for such enormous term of time considerably will exceed percents on a credit for a term of 10. Mortgage for a term of 30 at 5-ти will treat an interest rate to the borrower in a double size from the cost of the real estate. It is explained by that client, monthly bringing in a small amount on a credit - pays one percents practically, not diminishing the size of credit body here. A borrower has a right to bring in monthly payment in several times greater, than it is indicated in an agreement, abbreviating the term of payment of credit the same, if it does not conflict with the conditions of the agreement.
In the USA a credit on the real estate is named by «mortgage», that for word is translated word for word as a mortgage. Mortgage can be thus, as with the fixed interest rate - Fixed - Rate Mortgage (FRM) so with floating - Adjustable - Rate Mortgage (ARM).
What interest rate in the USA on crediting of the real estate?
Americans always stand before a choice, what variant of for them will be more advantageous. The size of floating interest rate always below than fixed (on 1-2%), but the terms related to the state of economy the USA in the moment of revision by the bank of size of rate influence substantially on him. Taking such mortgage, a borrower the family «plays roulette» with an interest rate, and does not have the opportunity in a prospect to distribute the charges. Depending on the terms of such credit, floating percent ставкаможет not to change in the first 3, 5, 7 (3ARM, 5ARM, 7ARM) from the moment of registration of mortgage, whereupon can be lifted to the border values (CAP), for example, from initial 3% to 7%, which 4% CAP will make from. On completion of the fixed period, a bank annually will look over the size of rate to complete redemption by a credit borrower, and in extremely rare cases toward diminishing. Such type of mortgage is preferred by those, who plan to liquidate a credit for the small interval of time. Rates on such credit on the average are varied from 3,1% to 4,5%. To date a rate on five-year mortgage loans (ARM) averages 2,85%.
The variant of mortgage with the fixed interest rate, in connection with absence of risks, all anymore attracts Americans. Uses him 75% borrowers. Frequently the potential customers of the real estate wait moment of economic stability in a country, at which the size of rate of FRM is not too high and all period of crediting is paid less subzero percent.
90% Americans wishing to purchase the real estate in credit is chosen mortgage for a term of 30 with the fixed interest rate. Middle rate on such credit on beginning 2016 year 3,72% makes.
We will give an example. Taking a mortgage in size of 200 thousand dollars. for a term of 15, with the interest rate of 3,23% final payment of borrower will make 252 thousand dollars., for a term of 30 with an interest rate is 4,5 % - 365 thousand dollars. The Over 90 percents of all transactions with the real estate in the USA are on a mortgage. Thus in Russia and in Ukraine a mortgage is used by no more than 10% customers.
Besides the advantageous terms of crediting, the state of the USA gives possibility of refunding of mortgage (redemption of credit balance by registration of credit in other bank with a less interest rate) to the citizens, and also creates the various programs of the mortgage crediting for of scanty means citizens, veterans, victims of catastrophes (which lost accommodation), pensioners, citizens using the energy-saving systems, et cetera
From the main features of mortgage in the USA it is possible to distinguish the following:
- Subzero interest rate. From the various types of credit, at a mortgage the most subzero interest rate. It is explained that a mortgage is frequently given out on the protracted term - 30.
- Primary and secondary property markets. As is generally known, the Russian and Ukrainian jars not gladly take up transactions with a mortgage in new building in connection with the risk of origin of construction in progress. At the same time in the USA of such risks it is not, therefore jars gladly take up any transactions, both with a secondary accommodation and with that which is in the process of building.
- High competition. In connection with that a mortgage is very popular in the USA, each of banks tries to retain the client. Therefore such crediting accessible to many layers of population. In extremely rare cases borrowers get a refuse.
- Accounting of incomes of client. At consideration of request on delivery of mortgage, the American jars take into account not only the profit of client from a salary, and any his personal accumulations, including pension, and also dividends, and receivables from rent.
- Primary payment. The size of primary payment equals 10-50%, but in some programs of bank such obligations are absent in general.
To go on a tick the real estate people attaining 25 can in the USA, but not older 75.
Is there a chance for foreign citizens to take a mortgage in the USA?
The jars of the USA reluctantly contact with foreign clients, including with the citizens of countries the CIS, alluding to the high level of risks. One of weighty arguments to give a mortgage loan to you, there is a confidential letter from the largest World Bank in which you must position, as solvent client.
First, that you may need do mortgages for a receipt, it to score first in the American bank on territory of the USA (term of registration from 14 to 30 days). On an account there must be enough facilities for bringing of primary payment, settling on accounts on a transaction and additional reserve. A sum of reserve must not be fewer sums of 12-ти monthly mortgage payments, insurance on the real estate, and cost of estimation of the acquired real estate, all taxes and collections which are paid in the process of transaction.
Also the letter of introduction will be required you from a bank which is in your home country and in which for you scored first by a term no less than two years. Besides it, monetary resources must correspond to your annual earnings which you must in the written form confirm similarly.
To the documents which will be demanded by a bank, belong: passport, copy of open visa («green is a map», working visa), credit history, documentary confirmation of your place of residence (for example, by receipts about the in payment of building services).
A bank can allot credit to you in a size from 100 thousand dollars. To 20 million dollars, at primary payment to 30%, that considerably higher, than for the citizens of the USA. On the average the term of registration of credit makes 45 days.
To get a mortgage loan foreigners (with the open American visa) can remotely. Procedure of registration of such transaction will demand bringing in of advocate or organization specialized on registration of such transactions to the foreigners. All necessary certificates and letters leave mail, at obligatory assertion them in the consulate of the USA (in your country).
Interest rate on a mortgage loan for foreigners higher, than for the citizens of the USA, and 5-7% (and in some jars to 8-10%) makes.
In this article we considered only the top of iceberg of the system of the mortgage crediting in the USA, therefore we want to turn your attention, that unassisted the experienced specialist, to the foreigner in this area to understand it will be very difficult.