The best offers of banks for mortgage refinancing

A mortgage is a type of loan that is taken out for a very long term. During this time, anything can happen - the solvency of the borrower, credit conditions on the market and other important parameters often change. In such cases, mortgage refinancing helps stabilize the situation and improve lending conditions.

Before making a decision on refinancing, it is worth carefully studying all the pros and cons of this procedure. The benefits of refinancing are largely determined by its goals. Among the main advantages are:

1. Interest rate cut relevant for those who have issued a mortgage for a long time. Recently, there has been a downward trend in the average percentage in the market. It is important to remember that with a large balance of debt, even a small reduction in the rate can lead to significant savings. In addition, this plus of mortgage refinancing takes place in cases where the interest was increased for other reasons, for example, the borrower could not provide a certificate of employment. If the situation has now changed, you can safely go for refinancing.
2. Reducing the amount of monthly payments. Since refinancing a mortgage loan does not mean keeping the terms, it is not uncommon for borrowers to ask for longer terms in order to pay less. This may be needed in the event of a deterioration in solvency.
3. Removal of encumbrances from real estate purchased in a mortgage. This option is not pure mortgage refinancing. It involves the issuance of a consumer loan in order to repay existing obligations. As a result of the transaction, the apartment will be taken out of collateral and the borrower will be able to dispose of it at his own discretion.
4. Changing the currency of the mortgage loan is of particular importance for those who have issued a loan in dollars or euros. As you know, in recent years, rates have grown significantly. But banks go to meet borrowers and convert debts into rubles.
5. Changing a credit institution to a more comfortable one. For example, the one that is close to home or where you receive your salary.
6. Opportunity to receive cash. This option is suitable for those who need money, but due to mortgage payments in consumer loans, they are denied. Often, a mortgage refinancing program allows you to increase the amount. The balance after extinguishing past obligations in this case can be used at your discretion.

The disadvantages of the on-lending procedure are less than the advantages. However, without knowing them, it is impossible to understand whether it is worth refinancing a mortgage. The main disadvantages are:

1. Most often, refinancing is unprofitable if half of the term of the contract has already passed. The fact is that most mortgage banks establish an annuity repayment scheme (that is, monthly payments are equal). With such a payment at the beginning of the term, the borrower mainly pays interest. The main debt begins to be actively repaid later. If you refinance a mortgage after most of the interest has already been paid, there will be no savings.
2. Additional expenses. Even the best offers of banks most often involve re-assessment of real estate and insurance. Naturally, these services are paid. They eat up some of the savings from refinancing. In addition, some banks in the contract provide for a fee for early repayment.
3. Big package of documents. To refinance traditional certificates from work and real estate papers will not be enough. You will also need to obtain documents from the bank in which the mortgage is currently issued. These may be certificates of the current amount of debt, timeliness and completeness of the fulfillment of obligations.

Thus, before you start choosing the best banks for mortgage refinancing, you should carefully analyze the benefits of this operation. Often, simple calculations make it possible to understand that the savings from the procedure will be less than the overpayment for the remaining time.

Favorable mortgage refinancing offers in 2017

Naturally, it is not enough to analyze the effectiveness of on-lending. If it is clear that the procedure makes sense, it is important to understand where it is better to refinance a mortgage in 2017. You can, of course, independently search for suitable banks, analyze and compare their offers. However, it is often more effective to turn to ratings compiled by professionals. Experts include in them only those credit institutions, the conditions of which are obviously favorable. The borrower can only get acquainted with the programs and choose the one that suits him.

Mortgage refinancing at VTB24 is the best offer of 2017

VTB24 offers mortgage refinancing at a low rate of only 10.7% per annum. This is the rate provided that the borrower takes out comprehensive insurance. If you refuse voluntary insurance, the rate will be increased by 1%. Also, when applying to VTB24, the borrower can count on the following lending parameters:

• loan amount up to 80% of the value of the mortgaged property;
• the maximum amount can be thirty million rubles;
• loan term up to 30 years;
• no commissions for consideration of the application and loan processing;
• early repayment without any sanctions;
• processing time up to five days.

Loan for mortgage refinancing at 10% from Otkritie Bank

Otkritie Bank offers mortgage refinancing of other banks on more favorable terms at a rate of 10 percent per annum. An excellent option for those who want to simply improve the terms of the loan at a lower rate, and for those who want to refinance their foreign currency mortgage loan.

Brief terms of refinancing:

• Interest rate from 10% per annum.
• Loan amount up to 30 million rubles.
• Loan term from 5 to 30 years.
• Ability to attract up to 3 co-borrowers.

Refinancing offer from Sberbank

Russians are used to trusting Sberbank. It also offers favorable refinancing terms. The rate, if necessary, to refinance the mortgage of another bank starts from 10.9%. This does not require certificates and consent to the procedure of the current creditor.

However, it should be noted that Sberbank assumes an increase in the rate in the following cases:

• if you wish to receive part of the amount in cash for your own needs;
• when combining consumer loans and mortgages.

In addition, the increased rate will be valid until the current loan is repaid, in case of refusal to insure, and also until the registration of a new mortgage.

Refinancing a mortgage loan from Raiffeisenbank

When deciding in which bank to refinance a mortgage, you should pay attention to the offer from Raiffeisenbank. Here you can count on the rate of 11.5% per annum. The credit organization in question offers to refinance not only a mortgage, but also a loan issued on the security of real estate for any purpose. True, the rate in this case will be higher - 17.25%.

The maximum loan amount in both cases will be 26 million rubles. Loan terms can range from one to twenty-five years.

One application to several banks from Tinkoff

The bank itself does not engage in mortgages, but it provides intermediary services in the market for this type of lending. An application submitted on the Tinkoff website is automatically sent to the best mortgage refinancing banks.

The convenience of this lender lies in the fact that absolutely all the preparatory stages take place remotely. It is enough to fill out one form to get approval in several banks. After that, you should choose a suitable lender, and when all the documents are prepared, complete the transaction at the bank branch.

Thus, it is not difficult to choose a suitable bank for on-lending. It is important to first analyze how beneficial such a deal is for the borrower. This is where a mortgage refinancing calculator can help.