Mortgage in the USA

The average price of a small Russian apartment ranges from 2-4 million rubles, and when it comes to metropolitan real estate, this figure increases several times. This greatly exceeds the cost of housing in the United States, where a 4-5 room house in most states is bought for 60-150 thousand dollars. Americans, as well as Russians, are not able to immediately pay their bills, so in 90% of cases they make out a mortgage for a period of 5 to 30 years.

The average cost of a mortgage loan in the United States is, depending on a variety of conditions, 3.5-7% per annum. If a loan decides to issue a resident of another country, for example Russia, then because of the risk that has arisen, the rate may be increased by 1-2%. It is worth noting that in this country there are two types of rates: floating (may change every few years) and fixed (set for the entire payment period). Loans at floating rates are cheaper, but more risky than at fixed rates. The average size of borrowed funds is 100 thousand dollars.

In America, there is a down payment for the purchase of real estate, which is usually equal to 30-50% of its price. In some cases, the first payment can be avoided, but this usually increases the cost of the loan.

For registration of mortgage need the following documents:

  • passport (or ID card / driver’s license); 
  • certificate of income;
  • credit history;
  • one or several letters of recommendation from banks confirming the cooperation of at least two years;
  • an extract from the account of the presence on it of the amount, which will be enough to make an annual payment on the loan;
  • copy of the contract of sale of real estate.

This list is not fixed, since each mortgage loan is issued individually. All documents must be translated into English. The application for the receipt of money is considered within 30 days.

Also, the Russian buyer of American housing will have to spend money on its assessment (up to $ 500), processing documents transferred to the bank (up to $ 400) and real estate insurance (1-2% of its value). An optional, but important procedure can be to check the condition of the house. For $ 250-500, a facility will be monitored, which will make it possible to identify all housing defects. By purchasing a mortgage loan, you need to return to the bank from 700 to 1000 dollars per month. Do not forget about utility payments – this is a few hundred dollars.

Mortgage can be refinanced at any time on a more profitable loan with a lower interest rate.

When deciding to buy US real estate, consider the distance of this country from Russia. Getting a visa, flight and other formalities can cost several thousand dollars. This purchase is justified only for the purpose of migration or long-term lease of the acquired property.

Council Compare.Ru: Some American banks are represented in Russia. In their offices it will be easier to get a loan for the purchase of foreign real estate than to draw up a transaction directly in the USA

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