Everyone wants to have their own housing for themselves and their families, but it is not always possible to purchase real estate with their own savings. In this case, many seek help from banks to get a mortgage. If you are considering moving to the United States, and want to get there a cozy apartment or house, then you may be interested in data on mortgages abroad.
Actual information for 2019
Should we expect changes in its index compared with 2018, and if so, in what direction? The answer is yes, the changes will be quite substantial . According to experts, at the moment there is a significant increase in interest rates. Over the past 2 months, the rate has increased by 1% and is not going to stop.
According to the representative of the mortgage agency Freddie Mac, it will increase by another 0.5% minimum. Thus, by the beginning of 2019 the interest rate approached its maximum over the last 3 years – to 6-7%.
Recall that in the United States there is a program to stimulate mortgage lending and increase housing demand. However, now many experts make assumptions that this program is beginning to curtail its effect, which led to an increase in the interest rate.
Pleases one thing – to compensate for the high size of the percentage, banks will reduce the list of requirements for the borrower. Please note that low rates are available only to Americans, i.e. those who have officially registered citizenship here.
The average cost of a mortgage loan in America is about $ 100,000. Clients can choose a fixed percentage (75% of borrowers are used) or floating, when always lower than the first by 0.5-1 pp, but it can change every 2-3 years depending on the current refinancing rate and inflation rate.
Can a Russian take a mortgage in the US?
Yes, this possibility really exists, and for this it is not necessary to be a resident at all. According to a study conducted by a US research firm, about 50% of foreigners acquire real estate overseas using a loan, and only 60% are permanent residents.
The green card is very important here. If you have it, then the banks will be loyal enough to you, you will be able to execute a contract at a small percentage, and also get the amount up to 97% of the appraised value of the property you are buying.
What are the requirements for borrowers:
- desirable citizenship
- the presence of official employment with experience of at least 1 year,
- age of the client from 18 years,
- the ability to make a down payment from own funds in the amount of from 10 to 50%.
It is noteworthy that in American banks there is no limit on the maximum age of the borrower, as is the case in Russian organizations. Here, if the borrower retires, he becomes an even more profitable client, because pension deductions are a permanent income from which you can pay off the debt.
What conditions are valid for foreign citizens?
In the event that the client is a foreigner, rates for him from 5 to 9% per year will be offered for him if he chooses a simplified lending program. A crediting period of up to 30 years will be available for it, a small first installment from 10 to 20% and a commission to be paid to the bank in the amount of 10% of the total loan amount.
In the event that a Russian wants to buy housing in America with a mortgage, and is ready to collect a full package of documents, then in this case he will be able to rely on the following conditions:
- the first installment of 20-30%;
- reduced rate of 5% per annum;
- reduced commission for the bank – 3-5%;
- payment term – up to 30 years;
- it is necessary to open an account in the bank for an amount not less than 12 monthly payments on the loan, serves as a guarantee.
Thus, the percentage of mortgages in the United States at the beginning of 2018 increased to 5-6% and continues to grow