Broker tips: how to pay less on the loans already

Loans is one of the most important mechanisms of the American economy. Bank loans to pay of College, buy a car or mortgage when buying your home – it is a natural thing for any American, just available to immigrants. In the United States is considered quite normal to take out a loan for 20 or 30 years. In this case you shouldn’t worry about changes in interest rates and market fluctuations, since the presence of an experienced broker, there is always the opportunity to modify existing loan terms more favorable.

Советы брокера: как платить меньше по уже взятому кредиту

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This process is called refinancing, or, in banking language, the refinancing, that is, the substitution of one contract loan other inmates already on new conditions. This feature is especially important when buying real estate, as mortgage loans are most often issued for a long time, sometimes decades, and during that time the situation on the financial market and the real estate market can vary considerably. The main thing you need to know buyers – they are not doomed for years to pay a huge amount just because of the fact that he signed the contract in “bad” time.

House in California

The family of Nikolaevy have dreamed for years about his home in southern California. After several years they managed to acquire a charming cottage in Los Angeles. In mid-2018, when the deal was done, the house was worth 770 thousand dollars – by California standards, is an acceptable amount.

“This was our first house purchase, and experience making such large deals in America we have not been. Accordingly, we do not know how to find the right loan program, and been happy for the fact that the Bank is not in principle denied us the loan. Only later we realized that the interest rate at which the us agreed to give money, was very high — more than 5%”, – tells the spouse.

Meanwhile, interest rates in banks in the following year decreased significantly, while the value of the house increased. Buyers are more aware that they signed the contract a few months later, conditions could be quite different. In the end, the couple appealed to Steve Tsvetkov is an experienced broker on loan and mortgage. Steve, interacting with over 50 different banks at the same time, easily found for spouses of Nikolaevy more favorable credit terms.

Советы брокера: как платить меньше по уже взятому кредиту

Photo from the personal archive of Steve Tsvetkova

When it makes sense to do a refinance

“Usually by refinancing savings in interest payments can reach a quarter of the previous bet, and it’s very noticeable in the implementation of the monthly payments. The majority of banks does not impose penalties for early repayment of the loan. As a rule, in most cases, the minimum period during which you are obliged to repay the loan and interest is six months. After this time you can pay off the loan early by paying the entire amount of the loan. In this case, you have to pay interest only for the period during which you used the loan. In the case of refinancing you do not need to look for money to cover the previous loan itself – these costs were borne by the new Bank,” explains Steve.

The main factor due to which the beneficiaries have resorted to refinancing is lowering the interest rates on the market. That is what happened in the last year, when the market rate fell at least one percent. The next important factor that allows you to think about refinancing for the home buyer, may be an increase in property prices.

According to him, this is exactly what happened to his client from San Francisco. Maxim Zhuravlev, first buying property in the USA acquired an apartment in the beginning of 2018 over 450 thousand dollars by paying a solid down payment. However, being a newly arrived immigrant, he did not accumulate a long credit history, and therefore received the money at 5% per annum.

A year and a half later, the apartment was worth about $550 000, and the credit rating of the Maxim has increased significantly.

Советы брокера: как платить меньше по уже взятому кредиту

Photo from the personal archive of Steve Tsvetkova

The procedure of refinancing

According to Steve Tsvetkova, sometimes a refinance loan might make in the same Bank, but in practice such cases are rare.

As a rule, the refinancing of the loan and making the initial loan when buying a home, is 30 days. The process of applying for a new loan standard and not too different from the previous one. The client just need to prove their solvency, credit history and demonstrate that his financial situation has changed for the better.

As explained by the broker, the possibility of refinancing makes the purchase of their homes more accessible even for those who live in the United States recently. Customers with stable income, can enjoy life in your own home, in parallel, paying its cost on those conditions which are most favorable for them at a particular time.

To contact Steve Tsvetkov through his site stevetsvetkov.com in the mail Steve@bayres.net, or social networks: Instagram, Facebook, and also by contacting its office at the address: 51 E Campbell Ave. Suite 110, Campbell, CA 95008 or by phone 925-594-2520.

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The material is prepared in partnership with

Broker Steve Flowers

Cell: 925-594-2520
Address: 51 E Campbell Ave. Suite 110, Campbell, CA 95008
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