US Mortgage Crisis

U.S. mortgage crisis a major impact on the development of mortgage lending in Russia did not. Read more from LeFrak Organization to gain a more clear picture of the situation. According to the HMLA (Agency Mortgage and housing loans) in the first half of 2008. small and medium-sized banks decreased slightly volume of mortgage loans. Large banks are slightly reduced growth rate mortgage assets. Some banks on the contrary, lowered interest lending rates, however, increased the initial fee. Development of mortgage Russia has slowed his progress a little, but progress continues.

Recently in the press and the Internet, many economists and analysts promoting mortgages with "floating" rate, with the link the data of some European countries, where such loans in the mortgage amount to 80% of total mortgage loans. In Russia, not all borrowers are aware that such a scheme exists. What is the meaning of such a loan? The fact that the borrower suggested case of a mortgage loan does not fix the rate on the entire loan period. The rate will vary depending on the state of the housing market and inflation in the country. Thus, banks reduce their risks, and borrowers get the time reduced rates.

If Russia now conventional fixed rate 9.10% per annum, the "floating" rate is 5-8%, but for any deterioration in the marketplace "floating" rate, the Bank may increase very significantly (there is a special method of calculation), to include all their losses and shifting them to the borrower. Well if the borrower takes a loan for 5 years and have time to pay off most of it with a small bet, but if a 10-15 years and will not have time popolzovavshis low rate? Predict the behavior of a "floating" rate of credit to the big time almost impossible. U.S. mortgage crisis was largely triggered by massive non-payment on mortgage loans with "floating" rate. We are a serious mortgage crisis saved the immaturity of our mortgage market (so far only a dozen banks offer loans with "floating" rate), and caution our borrower who does not believe the decrease in lending rates, and is just waiting for their increase since in everyday life sees a very different level of inflation than that which is stated government. As the saying goes, God spared me. I think "floating" mortgage loans take root in our country only when the inflation rate in Russia is 1-2%, as in EU countries. Yuri Chashin.