Features of mortgage lending in the United States
The term of the mortgage is from 5 to 30 years.
The average annual rate on a mortgage loan is 6 percent's .
Banks allow you to repay a loan on favorable terms.
Annual interest rate.
In the US, the amount of overpayment depends on the conditions of the bank. Its size varies in the range from 3.5 to 7 percent's per annum. The rate is influenced by the nationality of the borrower. Collaboration with a resident of another country increases the risk of non-return. The annual interest rate for foreigners increases from 1 to 2 percent's . Overpayment depends on the type of rates. They can be floating - able to change during the interaction with the bank, and fixed - unchanged for the entire period of registration of the mortgage. The latter type of betting is considered more reliable and stable.
Primary and secondary housing market. Cash out refinance house.
Apartments and houses are sold in unfinished form. This allows the bank to provide a pledged item.
An initial fee.
Regardless of the country of residence, the borrower, who decided to take a mortgage, will have to make a starting payment. The initial payment in the United States ranges from 10 to 50 percent's of the price of the apartment. But, analyzing the market, you can find a company that provides loans to buy housing without a start payment.
Taking into account the features of the proposal, the person will be able to calculate in advance the approximate cost of the loan.
Issuing loans, US banks are based on the borrower's documents confirming: registration and the actual address of residence; financial position; age; Kind of activity; family status; credit history.
For registration of the mortgage will need the following paper:
contract of sale;
assessment and verification of the status of the acquired property;
contract with an insurance company for home insurance;
documents on the payment of utility bills of past property owners.