Divide the cost of

To obtain a loan from a commercial bank the borrower on average should add on to his $ 3 - 4% for associated design costs. Additional costs a borrower's loan can be divided into several groups. Costs begin at the stage of inquiry about the possibility of providing money bank. Already at this stage the person who wants to take credit, many banks have to pay a fee for processing a loan application. However, in some banks that spending can be avoided. The next expensive step - loan. Here is the money required for the notarization of the contract, opening the loan account and assess the quality of collateral. After the approval of the issuance of credit received, the most time to think about the costs associated with transferring money. Most banks will have to pay commissions: for the transfer of funds and for determining the authenticity of bank notes. Also, borrowers have to fork out for rental depository and conversion of cash. But perhaps the most significant portion of the costs associated loan amount to the cost of insurance.

Details on Insurance

Taking credit for the purchase of housing on the secondary market, the borrower must insure against the three major risks. The first - life insurance and disability. How much cost insurance against this risk depends on age arrange the loan rights, and also on whether he suffers from chronic diseases. Minimum rate for life insurance is usually about 0.5% of the loan amount. Each borrower must insure the bank and the risk of damage to the apartment. Interest depend on assessments of insurers purchased housing. For example, on what the house floor, there is a geyser of whether redevelopment. The minimum fare for this type of insurance is usually about 0.3% of the loan amount. The third risk - insurance of property rights, the so-called `Title insurance '. It is necessary to the bank in case if you suddenly have a problem with the legal purity of the apartment. Depending on the degree of risk rates for title insurance varies from 0,25 to 0,5% of the loan amount. When you put together the cost of insurance against risks of all three, it turns out that the amount paid in the first year an average of 0,8 to 1,7% of the loan. How much cost insurance in subsequent years the repayment will depend on the size of the balance of the debt to the bank. Scatter in insurance rates pretty high. Largely it depends on factors related directly to the borrower. For example, the size of health insurance is directly linked to human health. Smokers borrowers pay more, because, according to the insurance companies are placing their health at greater risk. By what percentage will be insured by a person's life depends on its scope. The most dangerous insurers recognized the work of policemen, builders, installers, bodyguards and private security guards. The most secure is any office work.

'll Get a calculator ...

Talking about percentages rather abstract. So go straight to the money in his pocket, a safe or a bank account of the borrower. Calculate how much money should be spent on loan people. Studio apartment in the capital today, you can purchase a minimum of $ 120 000 - 130 000. Most banks, it is desirable that the borrower is in your pocket or on the account was an initial contribution of about 30% of the cost of purchased housing. If round, it turns out that in this case, the bank loan to purchase a one-room apartment in the capital will be about $ 80 000. By the way, according to mortgage brokers for loans is in the $ 80 000 - 90 000 today, most borrowers are turning to the bank. Thus, a person expects to take a credit of $ 80 000. Calculate how much to pay for its design. Three - four per cent of this amount would be $ 2 400 - 3 200.

We expand this amount on shelves

For quick processing of the application to the borrower will pay on average $ 40 to 50. Free review, as a rule, is much longer than is paid. The fee for issuing a loan on average is 1%, that is $ 800. Rent deposit boxes in most banks will cost $ 100. If the pledge is made in the apartment, her score would result in the borrower $ 120 - 150. For insurance in the aggregate for all three risks have to lay out an average of 1,5%, ie $ 1 200. Notarization of the contract will cost the borrower about 1 to 1,5% of the loan amount. That is, plus another $ 800-1 200. Additional costs can be attributed, and real estate services. They make an average of 5% of the cost to buy apartments. True, real estate funds, as a rule, laid down in the price of the apartment.

Credit decorated, but it's not all ...

And after the receipt of additional loan costs the borrower can not be avoided. Basically have to pay for the maintenance of loan accounts and annual insurance from the same three risks. Payment for the maintenance of loan accounts in different banks are calculated in various schemes. Most often it is not so much money: 0,05% of the loan amount every month. Depending on the balance of debt owed to the bank clients pay from $ 5 to 20 per month. At the annual leave pay insurance major mortgage related expenses of the borrower. The tariff is calculated on the basis of the unpaid amount of loan debt. To pay less, the borrower should carefully monitor your health, because insurance rates are reviewed annually. For example, new diseases, increasing rates of life insurance and disability. In the period of repayment, sometimes there costs associated with transferring money to the account. For example, inter-bank money transfers and conversion of funds. But, as we are assured the bankers, these expenses can be minimized or even avoid them altogether.

How to reduce the cost of the loan

Reduce costs associated with registration, you can, with an analysis of conditions for the issuance of credit by various banks. You can gather information from various sources and make their own conclusions. In choosing a bank can also contribute, based on its experience and knowledge, and mortgage brokers. In addition, to reduce the cost of insurance will help in good health and activity not associated with risk for life.