Mortgages are usually very large, and payments on them eat up almost half of the family income. As a result, you have to deny yourself a lot. Over time, the person who has issued a mortgage tries to find ways that can reduce the cost of paying back mortgage debt.
People have become especially active in looking for such ways recently, when prices for all goods are growing rapidly, and wages remain at the same level. For this reason, an increasing number of people are beginning to experience financial difficulties and want to find the most profitable solution for themselves. There are some legal tools that can significantly reduce the burden on the family budget of a mortgage borrower.
The certificate on the parent capital
With the appearance of the second and every subsequent child in the family (birth or adoption), parents receive a certificate of maternity capital. This is state aid that cannot be obtained in cash. This certificate can be used for very limited purposes. These goals included the possibility of full or partial repayment of mortgage debt.
After using the certificate, the mortgage amount will change significantly, and the borrower may ask the lender to review the amount of mandatory monthly payments. The burden on the family budget will become less, which means that it will be easier to cope with the mortgage payment.
Spending on housing loan servicing can be reduced by a tax deduction. This option can be used by anyone who has an official place of work. The amount of such compensation is equal to 13% of the income tax that was previously paid by this person from the salary. The mortgage borrower himself will decide which option of receiving compensation will be more suitable for him; paid in full at the end of the year or partially refunded every month, the employer will stop calculating income tax and wages will become higher.
Choosing your option, you should be based on which of them will be able to reduce the debt load as much as possible and facilitate the payment of a housing loan.
Refinance mortgage loans
This is another legal tool that allows you to significantly reduce the debt burden on any loan, including a housing loan. Refinancing programs become especially popular during the crisis when the population’s ability to pay is declining, and it is impossible to refuse to pay the loan. There are different refinancing options. The first is refinancing with your lender.
Such a scenario turns out to be unprofitable for the lender bank, and therefore it gives its consent to such action only in situations when it understands that it can stop receiving payment on the mortgage at all if it does not make concessions to the client. When the lender categorically does not want to refinance the mortgage, you can try another financial organization that will take on such obligations.
A mortgage borrower who intends to reduce the load in this way should understand that the cost of a refinanced mortgage will eventually be impressive, although the monthly load may decrease significantly due to the extension of the loan term.