Home Improvement Loans
The mortgage system in the United States of America is the closest to the European. In the United States, a person comes to the bank, receives approval for a loan and buys housing.
Until 2008, taking a mortgage in the States was ridiculously simple: you had to fill out an application. No job certificates, even a steady income, were not necessary, as was the down payment. Americans are not afraid of long loans, although in the first ten years a citizen pays only interest and only then – the principal amount of loan. Such mild conditions led to problems in refinancing companies, which created the prerequisites for the economic crisis.
Today, Americans prefer a mortgage with a fixed interest rate – that is, one that remains unchanged for the entire term of payment. To become a borrower, you must be at least 25 years old, but not older than 75. After the crisis, banks began to take into account both client income and personal savings – for example, pension, dividends and rental income. However, despite all this, the Americans are still almost never refused because of the high competition of banks. The average fixed rate on a loan for 30 years today is l3.72%, and the size of the down payment can vary from 10-50%. Some banks still do not require a down payment.
Americans are known for their mobility, they often move from state to state, so lonely people rarely take on debt. For the same reason, they take loans for apartments much less often than for houses. Americans are actively warned that a mortgage should be taken when you plan to live in a house for a long time, because it is cheaper.
Many Americans prefer to use the services of mortgage brokers, whose task is to achieve the best offer from the bank, again because of the high competition with banks, you can bargain.