Included in the list of services offered by most banks. Through this program, you can improve loan conditions and reduce financial burdens.

But is it really that simple? Before applying for a refinance, you need to consider all the pros and cons.

In this article we will reveal the whole truth about refinancing loans: is it profitable to do it and is it worth it, what is the benefit for you and what is it for the bank, we will find out the catch of the proposed service.

Is it worth refinancing?

Refinancing involves taking out a new loan to pay off the old one.

For example, the client already has a current loan agreement with a banking institution. He has the opportunity to contact another bank, where he will be offered a loan with a lower interest rate.

When applying for a refinancing, the borrower repays the first loan and pays it to another, new credit institution. The funds from the new loan are transferred to pay off the old debt. We wrote about refinancing loans from other banking institutions.

On-lending is usually divided into external and internal.

Domestic is offered within one bank. That is, the borrower is given a specific amount that can cover the old loan, but on more favorable terms.

The contract is re-signed with the client, indicating the changed interest rate and term. Typically, banks rarely agree to such a service unless there is a real need.

So, if the client has serious financial difficulties, then refinancing can be carried out, since for the creditor such a prospect is better than dealing with the courts when the debtor does not pay at all.

The latter receives a revision of the conditions in his favor, which also eases his burden. And sometimes renegotiation of loan terms becomes a bonus for conscientious borrowers.

External on-lending is an application to another organization to cover debt. Sometimes it's the only thing Possible Solution, helping to improve the conditions for using borrowed funds.

The client has every right to refinance the debt, and he can do it himself. This option is much more common, and in many cases it becomes very profitable.

The program allows the borrower to receive the following benefits:

This program, however, is beneficial and not always appropriate.. To understand whether the profit will be sufficient, you need to consider the following points:

• Interest rate. To significantly reduce overpayments, the difference between the two figures must be at least 5%.
• Monthly payment amount. Please note that as the loan period decreases, regular payments increase.
• Commission. The service involves the payment of a commission fee, and if it is too high, then the opportunity to save for the borrower is significantly reduced.
• Early repayment. When paying in advance, the profit of a banking institution decreases, so many of them, in order to level out losses, introduce fines and penalties.

In the first case, payments each month will be equal, and will include the amount of interest repayment (at first it will be large) and a small part towards the payment of the principal debt.

The latter will increase at the same time as the interest rate decreases.

With differentiated payment, the payment is always equal, and interest is charged only on the balance, and over time the total amount decreases. For the bank, the second option is not very profitable, since interest income decreases.

Offer pitfalls

Regardless of which bank the refinancing is processed in, The pitfalls of this service are almost identical everywhere:

You also need to consider the presence of hidden fees and charges.. This may concern the assessment of collateral (and paying an appraiser is not yet a guarantee of a positive decision by the credit institution), as well as the fee for considering a loan application.

An additional pitfall is the need to collect a large number of various papers and certify them.

This only makes sense if the benefits of refinancing are sufficient - otherwise you will simply be wasting your time.

Benefit for the bank

For banks, the main benefit of providing the service is in attracting new reliable clients. That's why they check your credit history. You can read about how to refinance a loan with bad credit history

Almost every family in modern world, planned to take it, took it and is paying it off, or has already paid off the mortgage loan. Those who are just setting out on this unknown and “difficult” path should be wished good luck. Those who have paid are happy that everything is behind them, but those who currently still have to pay are looking for ways to pay off the debt faster without overpaying.

This is why the opportunity was created. Let's figure out why this is needed and who benefits in the first place. What are the pros and cons of this procedure and how to do everything correctly, quickly and in the shortest possible time.

Important! It is possible to refinance both in another bank and in the one in which the mortgage loan was issued, but not all lenders are ready to refinance their own borrowers.

Usually, financial part procedures individuals passes between banks, i.e. the borrower takes out a loan in a new bank, which, in turn, pays off your debt.

The new loan amount may exceed the remaining debt previous loan, the borrower can use the remaining funds at his own discretion.

In the vast majority of cases, a mortgage loan is issued against the loan object or other property with the registration of a mortgage. In case of refinancing, the mortgage must be reissued to new bank, and while this procedure is followed, the loan is considered unsecured. As a result, the new bank temporarily increases interest rate for a mortgage until the documents are completely re-registered. Once the paperwork is completed, the interest rate on the refinanced mortgage is reduced.

In the case when refinancing occurs in the same bank where the primary loan was taken, re-issuance of the mortgage is not required, which significantly reduces the borrower’s time and expenses.

If the borrower decides to improve their lending conditions, then it is necessary:

1. Apply to your bank with a request to reduce the interest on the loan, or consider the option of refinancing the loan, if such a program is provided by the bank.
2. If the bank refuses to reduce the rate or refinance own funds, then you can contact another bank, where similar programs successfully practiced.

It is important to know! It often happens that if your bank refuses to reduce your interest rate or refinance and you go to another bank, then returning with positive decision about refinancing from another bank, your borrower may change his mind and agree to meet you by lowering the rate.

If you decide to tackle the issue of financial improvement of lending conditions, you need to carefully re-read your loan agreement and make sure that there are no conditions that impede this venture, namely, no:

• fines for loan repayment ahead of schedule,
• temporary ban (moratorium) on early loan repayment,
• complete ban on early repayment debt.

In the latter case, the idea of ​​​​on-lending will have to be abandoned and other solutions will be sought financial problems.

As with any business, refinancing has its pros and cons. But there are still more advantages.

The main positive aspects are as follows:

1. The interest rate on the loan is reduced.
2. Due to the reduction in interest, the amount of monthly payments and the total amount of overpayment are reduced.
3. Applying for a refinance is a fairly simple procedure that does not take much less time than a new one.
4. Refinancing allows the borrower to remove the property from collateral.
5. Paying off your mortgage early builds a positive credit history.
6. The consent of the original creditor bank is not required to repay the debt with funds from another bank.

The disadvantages include:

1. This procedure is beneficial only when you have accurately calculated all the costs of re-issuing documents and the terms of penalties for early repayment.
2. A large volume of documents that need to be collected in a short time, despite the fact that some cost money. You will have to pay a fee for issuing a loan from the new bank, if any. If the property is secured, then re-registration costs money, since the secured apartment will have to be re-evaluated.
3. Strict requirements of a bank willing to refinance. You must have almost perfect credit history, without delays, otherwise they may refuse to refinance, then the costs for the completed documents will be in vain, the result is wasted money (point 2).

Sberbank, like many other banks, is ready to refinance your mortgage, as this increases the prestige of the organization, expands its client base and guarantees further cooperation with the client.

Currently, Sberbank offers mortgage refinancing at 9.5% per annum in an amount of 1 million rubles and for a period of up to 30 years, and also offers consolidation of the principal debt with loans from other banks, which significantly reduces monthly payments.

Sberbank does not require certificates about the balance of loan debt in another bank, since it requests this data itself and guarantees an individual approach to each client. Therefore, registration takes a shorter time.

How favorable are the conditions at Sberbank?

Example: Residual debt amount is 1 million rubles, for a period of 4 years, monthly payment will be 25,124 rubles, with a lending rate of 9.5%.

At the same time and under the same initial conditions at VTB 24, your payment will already be 27,076 rubles, and the rate is 13.5% per annum, at DeltaCredit Bank 26,042 rubles. at 10.5%.

Conclusion, refinancing at Sberbank is profitable and quick.

Tax deduction for refinancing a mortgage

Refinanced, VTB or Raiffeisenbank - this is the same mortgage, only on more favorable terms. As a result, the borrower does not lose the right to obtain a property tax deduction. Moreover, the amounts paid on interest are added together (as from targeted loan, and from the refinanced one). However, first you receive a deduction for interest on the target loan (at the first bank), and then a deduction for interest on the refinanced loan (at another bank).

In connection with the on-lending procedure, the package of documents submitted to tax service. You will have to collect 2 sets of documents from both banks.

Important! In the new loan agreement It must be stated that the purpose of the loan is mortgage refinancing.

Many (if not all, then most) banks offer such a service as loan refinancing on more favorable terms. This will be especially interesting for those borrowers who have loans for large amounts, when even a slight improvement in interest rates can provide good savings due to the final overpayment on the loan. First of all, this is, of course, a mortgage, the size of which can be several million and the repayment period is calculated in years.

It would be nice to save several hundred thousand by refinancing mortgage loan. But here, as everywhere else, there are pitfalls. And this technique will not always give you a positive result. Moreover, you can even go into the red. How? More on this below.

What opportunity will refinancing give you?

For those who are not in the know, how mortgage refinancing works in a nutshell.

Loan refinancing is when you take out additional credit at the bank on more favorable terms, and the old debt is repaid using the funds received.

To put it simply, then third party bank(with your consent) buys back the debt from the lender financial organization. Now you are obliged to repay the loan from him, but at lower interest rates. You had a loan at 20% per annum, after refinancing it will be 15%. Annual savings - 5% of the debt amount annually.

Mortgage refinancing - advantages

Let's first consider the ideal option.

Mortgage refinancing is suitable for those who took out this loan for a long time, at high rates. Over several years, mortgage interest rates have been steadily declining. And now you can easily find the same loan on more favorable terms.

When my wife and I took out a mortgage for our first apartment in 2009, the loan rate was 16% per annum. We received a mortgage loan for a second apartment in 2014 at a rate of 12%.

We took out the first loan for 15 years. And if they were still paying it, then it would be reasonable to issue a new one, on terms more acceptable to us. Saving 4% every year is a lot of money (which you can find somewhere to spend on more interesting things than giving it to bankers).

Let's look at an example of how beneficial such a move is for families burdened with a mortgage loan.

There is a mortgage. The balance of the unpaid loan is 2 million rubles for a period of 10 years at 14% per annum. In the current situation, the overpayment to the bank will be approximately 1,700 thousand rubles (according to data).

Do you think that's all? Of course not. There is one more pitfall that can harm all your good undertakings and your finances. His name is tax deduction.

Stone 2 - tax deduction

This was the second reason why we refused to reissue the loan. If you do not plan to receive or have already received a full tax deduction for the apartment, then you can safely skip this point. Or you have an apartment worth 2 million rubles or more. If not, then read on for our tips.

Property tax deduction is an opportunity to return 13% of the funds spent on the purchase of housing and interest paid on the loan. But no more than 2 million rubles (at this moment). The deduction can only be used once in a lifetime.

When applying for a tax deduction, first of all, interest on the main cost of the apartment is returned to you. Once you have received all the money owed to you in full, the accrued interest kicks in.

When will you issue new loan for an apartment and close the previous mortgage, formally it will be considered that you have paid it off in full. As a result, you will not get the 13% that could be returned from interest accrued by the bank in the future.

You bought an apartment for 1.3 million. I had 300 thousand of my own money and took out 1,000,000 on credit for 10 years at 13% per annum. The overpayment on the loan will be about 800 thousand. You have the right to receive 13% of the cost of the apartment - 169 thousand rubles and from the interest paid on the loan - 91 thousand (13% of 700 thousand). Don't forget: 2 million for which you can get a deduction maximum amount- 2 million - 1.3 million (cost of the apartment) = 700,000. In total, you can receive from the state - 260 thousand rubles.

You have the opportunity to refinance the loan with another bank at 12 percent. A difference of 1% will immediately give you a savings of 10 thousand in the first year. And so on. The final savings will be about 70 thousand. But then you will lose the right to receive 95 thousand. The final total is minus 25 thousand. And also the costs of new registration.

Of course, on the old mortgage you have already overpaid part of the funds in the form of accrued interest and can claim to receive 13% from them. Therefore, before starting this whole procedure of re-issuing a loan, you need to calculate and weigh everything. And how can it turn out that the game is not worth the candle, when at first glance more profitable terms will not give you the significant savings you are expecting.

So is it worth refinancing?

Let's summarize all the information into an algorithm that will allow you to understand whether it is worth taking out a new loan. To do this, you need to carry out simple calculations, compare data and draw conclusions. You need to know the following values:

1. Re-registration costs.
2. The amount of future overpayment from the current balance on the current loan, minus the costs under clause 1
3. Overpayment as a result of refinancing
4. The difference between paragraph 2 and paragraph 3 will be your benefit.

Tax deductions are a little more complicated, but not much.

1. We calculate how much you can receive a tax deduction for accrued interest (2 million minus the cost of the apartment).
2. If you have already paid this amount in interest on the first loan, then we do not take this factor into account.
3. The cost of your apartment is more than 2 million, similar to point 2.
4. How much money can you return on a current loan in the form of overpayment of interest (tax deduction).
5. How much money you will not receive from the return on accrued interest.

Money loves counting. And it is better to spend a few minutes on calculations to assess the prospects of re-issuing a current mortgage than to waste time, money and nerves and end up with zero or negative results.

Important change (addition)

added 10/12/2017

Regarding tax deductions when refinancing a mortgage.

There is an article in the law:

Clause 1 art. 220 of the Tax Code of the Russian Federation: “the taxpayer has the right to receive the following property tax deductions,
4) property tax deduction in the amount of expenses actually incurred by the taxpayer to repay interest on targeted loans(loans) actually spent on new construction or acquisition on the territory Russian Federation residential building, apartment, room or share(s) in them, acquisition land plots or shares (shares) in them provided for individual housing construction, and land plots or shares (shares) in them on which the acquired residential buildings or share(s) in them, as well as to repay interest on loans received from banks for the purpose of refinancing (on-lending) loans for new construction or the acquisition on the territory of the Russian Federation of a residential building, apartment, room or share(s) in them, acquisition land plots or share(s) in them provided for individual housing construction, and land plots or share(s) in them on which the acquired residential buildings or share(s) in them are located.”

To put it simply, you can get a tax deduction for all expenses incurred (including refinancing) for an apartment.

The most important condition! The new agreement must specify the purpose of the loan - refinancing (on-lending) of the mortgage. Then there shouldn't be any problems. The tax office will accept the declarations and will return 13% of the interest paid on the new loan.

Before refinancing, be sure to check with the new bank what will be specified in the new agreement. If there is a different wording, then there may be problems with the tax authorities.

If, however, the wording is incorrect and a new loan has already been received, then we take a certificate from the bank about the purpose of the loan received and bring it to tax authority. There may be some inconvenience in terms of bureaucracy. However, the code must be taken literally. And the tax office perceives any deviation from the letter of the law negatively.

For some, providing such documents (certificates from the bank) is quite enough. Others are hostile to everything and do not want to repay the new loan.

It is better to clarify all the details in advance with your inspectorate at your place of residence.

Photo: Evgenia Yablonskaya for BankInformService

Refinancing is one of the products that is gaining significant momentum today. This is largely due to economic situation: loan rates have dropped significantly, a significant number of borrowers wanted to reduce their debt burden. We have collected in one text answers to the most important questions about mortgage refinancing from representatives of 8 banks.

At what rate difference will refinancing be profitable?

Experts agree that refinancing has a justified economic sense, if the difference in rates is at least 1 percentage point, and better - 1.5-2 percentage points. This is due to the fact that during refinancing, many associated costs arise, including obtaining paid certificates and insurance, and this significantly affects the savings received from the difference in rates.

“Loan refinancing is beneficial for those who took out loans at high rates. Over several years, mortgage interest rates have been steadily decreasing. And now the difference in mortgage rates reaches 4 percentage points compared to 2013-2014 rates. When refinancing in this case, for the average borrower the difference in payment is about 4,000 rubles monthly,” says Zapsibkombank. Calculating the final savings yourself is not that difficult.

A comment

It is quite easy to calculate the benefits yourself. Contact the bank that will refinance your mortgage and find out the size of your future monthly payment at a reduced rate. Next, calculate the difference in payments and multiply it by the number of months remaining on the mortgage. Then subtract from the amount received all expenses for paperwork, real estate valuation, etc.

If we talk about specific numbers, then it is possible and necessary to refinance a mortgage if the loan rate is above 12%, says the head of the center mortgage lending jar " Russian Capital» in Yekaterinburg Dmitry Mochalin. His colleague from the VTB retail branch draws attention to the fact that the term of the loan also matters - refinancing in the first years of servicing the mortgage will be most effective.

A comment

Mortgage refinancing is profitable starting from a difference in rates of 1% and above, but only in the first years of repayment of the mortgage loan (it will be most effective in the first 1-2 years), since it is during this period that the main part of the interest and the minimum part of the principal are paid debt.

Sometimes it is advisable to change lenders, even if the difference in rates is small, but there is an opportunity to increase the term of the mortgage.

A comment

Refinancing is not only a change in rate, but also the opportunity to change the term of the loan. For example, if a family has undergone a change salary conditions, and the original loan was issued for a period of 10 years, then increasing the loan term will reduce the amount of monthly payments. the main objective clients when refinancing - obtaining new convenient and comfortable mortgage conditions.

Some banks offer to combine several loans into one during the mortgage refinancing process or receive an additional amount for repairs, for example.

A comment

Elena Vyatkina, head of the mortgage lending department in Yekaterinburg, Uralsib Bank:

There is no general recipe for all occasions. It all depends on the goals of refinancing. You can lower your monthly payment by increasing the loan term, even at the same rate. The borrower may have several loans with at different rates, which he wants to combine into one and thereby significantly reduce the monthly load on family budget. In our refinancing program you can combine mortgage, consumer loans and debts credit cards, and also include an additional amount in the body of the loan in order to receive it in cash.

Let's calculate the benefits using specific examples

To get an idea of ​​how profitable refinancing can be, we asked representatives credit institutions make calculations based on specific parameters - the most popular terms and amounts. On average, savings amount to more than 500-800 thousand rubles.

Case from Primsotsbank

Anna Demidova, head of the sales department of the mortgage lending department of Primsotsbank:

Conditions for the previous loan: Loan amount 2 million rubles. Loan term 20 years Interest rate - 13.5% per annum Monthly annuity payment RUB 24,190. When refinancing a loan while maintaining the loan term, but reducing the rate to 10.5%, the monthly payment will be about 20,000 rubles, but the savings on the interest rate for the entire loan term will be more than 800,000 rubles. Agree, the difference is significant.

Case from VTB

Elena Beltikova, head of sales department mortgage loans retail branch of VTB Bank in Yekaterinburg:

Let’s assume that a client has taken out a mortgage loan for 2 million rubles for 15 years. The current loan was issued at 15.5% and the monthly payment on it is 28,679 rubles. After 2 years, the borrower refinances the mortgage, and the rate on the new loan drops to 11.75% (this is the rate currently offered by the retail branch of VTB Yekaterinburg). The monthly payment will decrease to 24,068 rubles. In this case, over 15 years of loan repayment, the borrower will save 719,331 rubles. Even if we subtract additional costs for refinancing (collateral assessment, insurance), as we see, the savings are significant.

Case from DeltaCredit

Alena Pavlova, head of DeltaCredit bank in Yekaterinburg:

The borrower will receive income in the form of a reduction in overpayment in any case - and the less time he services the existing loan high rate, the greater will be his benefit. Conventionally, if the borrower still owes the bank 2.8 million rubles, he has to pay the mortgage for another 14 years and his rate is 13% per annum, then re-issuing a mortgage at a rate of 10.5% per annum will save him more than 500 thousand rubles.

What additional costs does the borrower incur when refinancing?

Refinancing is not only 500-800 thousand rubles of savings, but also costs. Their size, as a rule, is not very large, but they also need to be taken into account.

First of all, this is a real estate assessment - it will cost 2-5 thousand rubles, depending on the object and the chosen appraisal company. Also, during the refinancing process, costs arise for state fee for registration of a mortgage agreement (usually up to 500 rubles).

If the property was purchased during marriage, you will most likely need a notarized consent of the spouse to the transaction (about 1,500 rubles). Almost all lenders require collateral insurance when refinancing - usually 0.3-1.5% of the value of the property. It is possible that the terms of the contract will also provide for life insurance for borrowers - its amount depends on the insurance company and individual characteristics the borrower (his state of health, profession, age).

Additional costs may be associated with obtaining documents from the primary lender. Some (but not all) banks charge a commission for certificates of the debt balance and interest paid, a certificate of no arrears, and a certificate with details for early repayment of a loan from the primary lender.

Always ask your new lender for a complete list of additional expenses: it is possible that in a particular bank the list of additional expenses will differ from the standard one.

How long does it take to refinance a mortgage?

As a rule, the entire process consists of five stages: 1. Assessment of the borrower.
2. Valuation of collateral (real estate).
3. Transaction (signing of an agreement).
4. Issuing a loan.
5. Re-registration of the collateral to a new creditor.
Depending on the bank and the individual characteristics of the transaction, the procedure may take different quantities time. If you do everything promptly, you can do it in 1.5 weeks. When collecting documents, you need to keep in mind that some certificates have their own expiration date.

A comment

Svetlana Kovaleva, deputy manager of the Absolut Bank branch in Yekaterinburg:

As a rule, the borrower initially contacts a bank branch in person or consults by telephone “ hotline" Next, he submits an application to refinance his loan. The package of documents is standard: application form, passport, income certificate, copy of work book, documents for the apartment. We review your application promptly, no more than two days. Most often, the borrower will find out the decision on the same day or the next. Then he orders a real estate appraisal report, obtains certificates about the balance of debt and the absence of overdue payments from the bank that previously issued the loan. It should be borne in mind that these certificates are usually valid for a short time (usually up to 5 days). Therefore, efficiency and coordination of actions between the bank and the borrower during the transaction process is very important.

The term for processing a mortgage refinancing is influenced not only by the efficiency of the chosen bank and the efficiency of the borrower himself, but also by the speed of processing documents with the original lender.

At first glance, refinancing may seem quite in a profitable way cancellation of mortgage debt. However, not everything is so simple; this service contains many pitfalls and features that you should be aware of.

So, this article will help you understand the main advantages and disadvantages of this procedure.

What is the essence of refinancing in another bank?

Nowadays, the mortgage loan refinancing system is actively used, which is designed to transfer expensive loans into the cheaper category. So, the client has the opportunity to repay current debt on a mortgage using a loan issued by another bank.

The meaning of this procedure can be represented as follows:

1. The borrower finds a new lender offering more favorable conditions (lower interest rate, lower monthly payment, etc.).
2. A refinancing agreement is concluded.
3. The current mortgage debt is paid off with funds received from another lender.

The home that was held as collateral by the previous lender is usually used as collateral for the new loan. However, there are banks that are ready to provide on-lending without receiving any guarantees, but the fee for such a loan will be many times higher.

Thus, for the bank the point is to lure away someone else’s client, and for the borrower it is to save a certain amount of money.

Pros and cons of the procedure

Having heard about such a service, many citizens are interested in whether refinancing a mortgage is profitable? In order to answer this question, let’s look at the main advantages and disadvantages of this procedure.

So, The main advantages of refinancing are as follows:

• Possibility of reduction total amount payments due to a reduced interest rate;
• Transferring a loan from one currency to another (for example, from dollars to Russian rubles);
• Decrease monthly fee by increasing the loan term;
• Combining several loans into one;
• Removing the encumbrance from the mortgaged property (if the second bank agreed to give a loan without collateral).

Thus, a subsequent mortgage loan has significant advantages. However, it is worth looking at it from the other side, having become familiar with a number of disadvantages:

• The occurrence of additional costs associated with servicing such a service (additional commissions and fees);
• Duration and complexity of the procedure (refinancing with another bank is equivalent to obtaining a new mortgage);
• You can repay no more than 5-6 loans;
• The need to obtain permission from the previous lender;
• An impeccable credit history is required.

Should you refinance your mortgage?

Registration of a subsequent mortgage is not in every case effective way reducing financial burden. Sometimes such a procedure can even entail even larger debts, so in order to understand whether this makes sense, you need to collect the maximum amount of information.

Determine whether it is profitable to refinance a mortgage in specific situation, answers to the following questions will help:

• How long has it been since the mortgage loan started to be repaid?
• What percentage does the lender offer?
• Are there additional service fees and how much are they?

Situations when it makes sense

So, it is advisable to do refinancing at the beginning of applying for a mortgage. The thing is that most banking institutions use an annuity scheme in settlements with clients, which involves paying the main interest in the first months. At the same time, the loan body itself is practically not returned at the initial stage.

Thus, by refinancing immediately after taking out a mortgage loan, the borrower can save a significant amount of money by paying lower interest.

Next important point is the amount of the usage fee credit funds under the on-lending system. Today, banks offer a variety of conditions, but in order for such a procedure to make sense (from an economic point of view), the negative difference between the current and new mortgage rates must be at least 2 percentage points. Otherwise, all the resulting savings will be “eaten up” by additional expenses that may arise during registration (commissions, state registration fees, penalties for early repayment, etc.).

Before making the final decision, it is necessary to compare all the costs and the amount of benefit that will result from using such a service. Only in this case will it be possible to understand whether refinancing a mortgage is profitable.

Instructions on how to do it right

Quite often, citizens experience some confusion, not knowing where to start. Understand how to properly format this procedure, the following action plan will help:

Step 1– you need to study as many programs of various lenders as possible and choose the most profitable one for yourself.

You should start analyzing the terms of refinancing with your bank (where the mortgage was originally taken out), since this option is more convenient and faster.

Step 2– draw up an application and submit it to the lender. This can be done through personal contact or via the Internet by filling out the appropriate form on the bank’s website.

Step 3– wait for a response (usually this takes from 2 to 5 days).

Step 4– having received consent to refinance, you need to notify your current lender about this, and then begin collecting documents.

Step 5– provision of necessary papers and conclusion of an agreement with another credit institution.

After all formalities have been settled, the new lender will repay the client’s debt by transferring the appropriate amount to the account of the previous lender.

Feedback from bank clients: let’s look at an example

One of the surest ways to see the situation from the inside is to obtain first-hand information, that is, from people who have already used similar service. So let's consider real reviews, when customers actually benefited from refinancing, as well as their negative experiences.

Roman (VTB 24 client): « A year after applying for a mortgage, I realized that I could no longer make the monthly payment. I learned about such a service as refinancing and began looking for a suitable bank. I came across a program offered by VTB 24. I really liked the conditions: rate - 8.8% (with the current 11%), amount - up to 30 million rubles, term - up to 30 years. I was especially pleased with the absence of service fees and penalties for early repayment.

I went to their official website and filled out an application. A positive response came about 2 days later via SMS, although I was afraid of rejection due to the modest size of my monthly income. Everything was completed quickly, there were no problems. I'm very glad I used this service».

Olga ( regular customer"Sberbank"): « I submitted an application to refinance my mortgage loan on March 16, 2018 (I took out the current loan from the same bank). It is now September 23rd, and there is still no clear answer. Every time they send some replies. The deadline for consideration of the application was extended until October 11, 2018. It's very disappointing to see regular customers treated like this!».

Vladimir (Transcapitalbank client): « After 2 years of paying off the mortgage, I decided to try refinancing. I contacted TKB, they offered 9.45% or 8.45% (if 3% of the loan was paid). Very polite staff, gave competent advice and explained the nuances of the procedure.

As a result, we saved approximately 500 thousand rubles, while paying 60 thousand rubles monthly».

Useful video

Conclusion

Thus, it cannot be said definitively that refinancing is a guarantee of obtaining a cheaper mortgage loan. The final amount of savings depends on many factors that should be taken into account in advance. In some situations this is really beneficial, in others it is an absolutely pointless procedure.