A mortgage is four times more expensive than an apartment: how much will the loan cost?

By agreeing to a mortgage, the borrower will have to overpay four times the original cost of the apartment. How much the deal will cost, taking into account interest, Gazeta.Ru was told by the Etazhi company.

According to calculations by the deputy head of the company’s mortgage department, Tatyana Reshetnikova, when purchasing an apartment worth 10 million rubles on a market mortgage for a period of 30 years and an initial payment of 20 percent, the total overpayment can reach 36.3 million rubles. If the loan amount is 8 million, then at an annual rate of 18.4 percent, the mortgagee will give the bank 44.3 million rubles, and taking into account the down payment - 46.3 million. With a loan term of 20 years, the overpayment will be reduced to 22.2 million, but when added to the first installment, the amount will be 32.2 million, with a mortgage term of 15 years - 15.6 million and 25.6 million, respectively.

Reshetnikova considers the optimal mortgage repayment period to be seven years - with a loan amount of 8 million and an interest rate of 18.4 percent, the overpayment will be 6.3 million rubles, which is 5.8 times less than with a mortgage for a period of 30 years. If we are talking about a family mortgage, then with an amount of 8 million rubles and a period of 30 years, the overpayment will reach 9.3 million rubles. With a repayment period of 15 years, the overpayment will be 4.2 million. In general, the expert advises taking out a mortgage for a long term, which will reduce the required payment, but if possible, repay it ahead of schedule, reducing the term to 7-8 years.