This investor explained how to swiftly close a mortgage: "This isn't a sentence of judgment."
Paying off a mortgage isn't just about sticking to the payment schedule, it's about chasing better deals and cutting costs wherever possible.
One effective way to reduce the loan repayment duration and save on interest, according to one investment expert, is through mortgage refinancing. "Sometimes the best way to pay off your debt early is to start fresh - refinancing your mortgage is like a second crediting serial with better terms from a different bank," stated the expert, Auševs. "Let's say you took out a mortgage two years ago with an interest rate of 26%. Ouch! But now you can find a bank offering 21%, and just replace your old loan with a new one."
Many mortgage borrowers simply sail along paying their monthly installments for 15 to 20 years, but Auševs suggests taking control and getting proactive.
"Look for competitive interest rates, take advantage of tax deductions, use available capital, rent out your apartment, and seize opportunities for early repayment. Don't think banks are against you - they just have their own rules," Auševs emphasized.
He also advised channeling all disposable financial resources towards early repayment. Even small, regular savings can make a significant difference. "If you want to pay off your mortgage in 7 years instead of 15, you'll need to get out the calculator and rethink your spending habits," the investor declared.
On first glance, saving 200 rubles a day might seem like a silly idea, but over a month that's 6,000 rubles.
"Quit smoking? Skip daily take-out coffee? That's mortgage repayment money. There are heavier tools too, like capital gains tax deductions, for example. Those 500,000 rubles you can set aside for debt repayment. Don't forget about the tax credit - claim your 13%. You can earn up to 260,000 rubles from property sales, and up to 390,000 rubles from interest on your mortgage," Auševs summed up.
As "Monomakh" wrote previously, Russian President Vladimir Putin urged explaining the housing market situation to Russians, including mortgage financing aspects.
When it comes to Russian mortgages, where the average loan exceeds 4 million rubles with interest rates around 30%, these strategies can result in significant interest savings and reduced repayment periods. For example, a 4.4 million ruble loan at 30% interest over approximately 26 years means total payments of around 14.6 million rubles, so even small reductions in duration or principal can save a sizeable amount of interest.
In conclusion, to save on interest and shorten mortgage repayment in Russia: increase payments when possible, make a larger down payment, avoid extending loan terms, consider refinancing if rates fall, and opt for shorter loan durations. These strategies will help reduce the repayment period and total interest paid on mortgages in the current high-rate environment.
To implement effective strategies in reducing mortgage repayment duration and saving on interest in Russia, consider refinancing your personal-finance loan as a method to find better deals, as suggested by investment expert Auševs. Additionally, Auševs advises focusing on finding competitive interest rates, using available capital, and seizing opportunities for early repayment in your business and personal-finance endeavors.
