Making a mortgage, a person hopes to quickly pay off obligations, using the maximum of their own resources. However, it is not always possible to fulfill the planned, and the reason is not at all in the absence of funds. The problem is with respect to banks for early repayment of the loan, after issuing a loan, the bank hoped for years to receive interest on its mortgage depositor.
Not so long ago, one of the main parameters by which customers estimated the benefits of a mortgage loan were the conditions for early repayment, since it was unprofitable for lenders to give loans for short periods. To preserve a portion of the profits, financial institutions imposed high penalties of 4-5% of the total debt and imposed a ban on too quick repayment.
Such a condition seriously limited the rights of borrowers, not allowing them to close credit debt at their discretion. After repeated complaints about the violation of clients’ rights, most financial structures refused from prohibitive sanctions, agreeing only on the procedure of prior notification of impending repayment over and above the fixed schedule.
And yet, when selecting a new mortgage, still face the reluctance of lenders to give the right to a quick refund. Of the limiting factors, mortgage borrowers face:
Sometimes credit institutions, taking advantage of legal illiteracy of citizens, add words to the clauses of the agreement on the prohibition of repayment outside the schedule of payments. This fact forces us to continue to check the conditions of the upcoming contract, studying the procedure for early payments. The current federal legislation enshrines a number of the rights of borrowers who have issued mortgage housing, and the right to early repayment is among the most significant legal victories.
Another thing is that finding funds for early repayment of a housing loan is not so easy. As a rule, a quick loan repayment is possible in the following situations:
The amount and frequency of depositing funds to the account of debt closure does not depend on the will of the bank. The borrower determines whether this repayment will be full or partial, monthly or one-time. All that is required of the property owner is to have a sufficient amount and timely write an application for offsetting the amount to be written off from the main debt.