Optimum real estate: the size, term, interest, currency

The mortgage it simultaneously:
- And method of the decision of housing problem
- And long-term servitude

Therefore borrowers are excited with a complex (difficult) question: In what size, on what term, under what percent (interest) and in what currency to take a real estate? And at last, in what bank? And for this purpose it is required to compare conditions of crediting in different banks: of the Interest Rates (IR),, terms, additional charges, advance settlement and prolongation of the credits, fines...

Can be is more favourable, more accessible and is more safe decide housing problem for some rather "Easy" short-term stages with breaks between them instead of one burdensome and long. To not wait at the sea of weather and to not get in long-term financial servitude.

For comparison of a IR and terms 4 tables are applied

Table 1

Monthly Fixed Payment in percentage of the sum of the credit in dependence from currency, interest rates and terms of crediting

Table 2

Factor of credit status - sum of the credit on 1 rbl. (dollars or CR - Constant Rouble) Monthly Fixed Payments depending on the interest rates and terms of crediting

Table 3.

The final sum all Monthly Fixed Payments in percentage of the sum of the credit depending on currency, interest rates and terms of crediting

Table 4.

Final sum of interests for all term of crediting

Table 1
- We compare the 30-year's credit to a IR - 16%/year (Monthly Fixed Payment (MFP) - 1,34%/month from of the Sum of the Credit (SC)) with the 15-year's credit - IR - 14%/year and MFP - 1,33%/month from a SC. What for to pay 360 times till 1,34%/month, if are possible - 180 times till 1,33%/month?
- We compare the 10-year's dollar credit to a IR - 10%/year - MFP - 1,32% with 30-year's rouble credit with IR - 15% - MFP - 1,26%. 120 dollar MFPs against 360 rouble. Can it is necessary to try and to choose the dollar credit? Or to try to agree about 11 or 12-year's dollar credit? The exchange risks should be evaluated itself to the borrower.
- Variants - great variety. Than above initial instalment, the below than IR. Can be to the borrower it is necessary a little to reduce a rod and to choose smaller 5-year's the rouble credit from a IR - 12%/year - MFP - 2,22% instead of 30-year's "large" from a IR - 15%/year - MFP - 1,26%. I.e. to decide housing problem for 2 concerning a short stage with break between them instead of one long. At advance settlement it is possible to reduce and these stages.
Smaller short-term credit with "low" IR is more safe and for the borrower and for bank. At extreme the necessities are easier it for prolonging, a little having increased terms and IR with simultaneous decrease (reduction) MFP. Besides the expensive housing accommodation "increases" municipal payments.

Table 2
- At a zero IR Factor of Credit Status (FCS) is equal to term of crediting months
- Basically, it is possible to make the same conclusions as under the Table 1.
- We compare the 30-year's credit to a IR - 16%/year - FCS - 74 rbls/rbl with 15-year's - with a IR - 14%/year - FCS - 75 rbls/rbl. That it is more favourable: 360 payments till 1 rbl for the credit 74 rbls or 180 payments till 1 rbl for the credit 75 rbls?
- Knowing Monthly Solvency Borrower (MSB),, is possible to calculate Sum of the Credit at Various conditions of crediting. For the considered 15-year's credit at a MSB = 10000 rbls/month = 10 TRs/months:

SC = MSB * FCS = 10 * 75 = 750 TRs

Table 3 and Table 4
- Here all is clear from headings (Final sums of all payments and interests).. Unfortunately, on them it is impossible to take into account real costs adjusted for the future inflation, since nobody can predict rate of inflation for decades forward with exact breakdown on years. At crediting in Constant Roubles (CR) such account (record-keeping) becomes possible.

A CR - Constant Rouble - index of the prices, inflationary parameter

The application of a CR will allow to the borrowers to take in times the greater credit, i.e. for many years to decide earlier housing problem. Under the Table 1 is comparable the 30-year's credits in roubles and CR. By rouble IR - 14%/year - MFP - 1,18%/month from a SC at the Disputable Inflationary Forecast (DIF) - 12%/year corresponds the IR in a CR - 2%/year - MFP - 0,37%/month. (If is exacter, a IR in a CR = 1,79%/year; 1,14/1,12 = 1,0179; = 1,79%). I.e. borrower at identical monthly solvency at crediting in CR can take in 3,19 times the greater credit (1,18/0,37 = 3,19). The borrower for many years earlier begins to pay, instead of another's employed rising in price housing accommodation. To pay it is necessary at a growing rate of a CR, but game costs of candles. At advance settlement it is possible to settle up much faster than for 30 years.

The CR decides a problem of a DIF. The investors receive an opportunity real preservations and augmentation of a buying power of the savings. The borrowers receive more accessible credits. Arrived of banks also will increase, since the trust of the investors will be increased, essentially will increase volumes and quantity of the placed contributions and given credits.

The note:

Table 1. Monthly Fixed Payment in percentage of the sum of the credit in dependence From currency, interest rates and terms of crediting

Cur	Interests		Terms Crediting (years / of months)							%% year
			5	10	15	20	25	27	30
	Year-	Month	60	120	180	240	300	324	360
CR	0	0	1,67	0,83	0,56	0,42	0,33	0,31	0,28	0
-	1	0,08	1,71	0,88	0,6	0,46	0,38	0,35	0,32	1
-	2	0,17	1,75	0,92	0,64	0,51	0,42	0,4	0,37	2
-	3	0,25	1,8	0,97	0,69	0,55	0,47	0,45	0,42	3
-	4	0,33	1,84	1,01	0,74	0,61	0,53	0,51	0,48	4
-	5	0,42	1,89	1,06	0,79	0,66	0,58	0,56	0,54	5
/	6	0,5	1,93	1,11	0,84	0,72	0,64	0,62	0,6	6
/	7	0,58	1,98	1,16	0,9	0,78	0,71	0,69	0,67	7
/	8	0,67	2,03	1,21	0,96	0,84	0,77	0,75	0,73	8
YEARS			5	10	15	20	25	27	30	-
$	9	0,75	2,08	1,27	1,01	0,9	0,84	0,82	0,8	9
-	10	0,83	2,12	1,32	1,07	0,97	0,91	0,89	0,88	10
-	11	0,92	2,17	1,38	1,14	1,03	0,98	0,97	0,95	11
$/rb	12	1	2,22	1,43	1,2	1,1	1,05	1,04	1,03	12
rbl	13	1,08	2,28	1,49	1,27	1,17	1,13	1,12	1,11	13
-	14	1,17	2,33	1,55	1,33	1,24	1,2	1,19	1,18	14
-	15	1,25	2,38	1,61	1,4	1,32	1,28	1,27	1,26	15
-	16	1,33	2,43	1,68	1,47	1,39	1,36	1,35	1,34	16
-	17	1,42	2,49	1,74	1,54	1,47	1,44	1,43	1,43	17
-	18	1,5	2,54	1,8	1,61	1,54	1,52	1,51	1,51	18
-	19	1,58	2,59	1,87	1,68	1,62	1,6	1,59	1,59	19
YEARS			5	10	15	20	25	27	30	-

-

Table 2. Factor of credit Status - Sum of the credit on 1 rbl. (CR, dollars) Monthly Fixed Payments depending on the interest rates and terms of crediting

Cur	Interests		Terms Crediting (years / of months)							%% year
			5	10	15	20	25	27	30
	Year-	Month	60	120	180	240	300	324	360
CR	0	0	60	120	180	240	300	324	360	0
-	1	0,08	59	114	167	217	265	284	311	1
-	2	0,17	57	109	155	198	236	250	271	2
-	3	0,25	56	104	145	180	211	222	237	3
-	4	0,33	54	99	135	165	189	198	209	4
-	5	0,42	53	94	126	152	171	178	186	5
/	6	0,5	52	90	119	140	155	160	167	6
/	7	0,58	51	86	111	129	141	145	150	7
/	8	0,67	49	82	105	120	130	133	136	8
YEARS			5	10	15	20	25	27	30	-
$	9	0,75	48	79	99	111	119	121	124	9
-	10	0,83	47	76	93	104	110	112	114	10
-	11	0,92	46	73	88	97	102	103	105	11
$/rb	12	1	45	70	83	91	95	96	97	12
rbl	13	1,08	44	67	79	85	89	89	90	13
-	14	1,17	43	64	75	80	83	84	84	14
-	15	1,25	42	62	71	76	78	79	79	15
-	16	1,33	41	60	68	72	74	74	74	16
-	17	1,42	40	58	65	68	70	70	70	17
-	18	1,5	39	55	62	65	66	66	66	18
-	19	1,58	39	54	59	62	63	63	63	19
YEARS			=5=	10	15	20	25	27	30	-

-

Table 3. The final sum all Monthly Fixed Payments in percentage of the sum of the credit depending on currency, interest rates and terms of crediting

Cur	Interests		Terms Crediting (years / of months)							%% year
			5	10	15	20	25	27	30
	Year-	Month	60	120	180	240	300	324	360
CR	0	0	100	100	100	100	100	100	100	0
-	1	0,08	103	105	108	110	113	114	116	1
-	2	0,17	105	110	116	121	127	129	133	2
-	3	0,25	108	116	124	133	142	146	152	3
-	4	0,33	110	121	133	145	158	164	172	4
-	5	0,42	113	127	142	158	175	182	193	5
/	6	0,5	116	133	152	172	193	202	216	6
/	7	0,58	119	139	162	186	212	223	240	7
/	8	0,67	122	146	172	201	232	244	264	8
YEARS			5	10	15	20	25	27	30	-
$	9	0,75	125	152	183	216	252	267	290	9
-	10	0,83	127	159	193	232	273	290	316	10
-	11	0,92	130	165	205	248	294	313	343	11
$/rb	12	1	133	172	216	264	316	337	370	12
rbl	13	1,08	137	179	228	281	338	362	398	13
-	14	1,17	140	186	240	298	361	387	427	14
-	15	1,25	143	194	252	316	384	412	455	15
-	16	1,33	146	201	264	334	408	438	484	16
-	17	1,42	149	209	277	352	431	464	513	17
-	18	1,5	152	216	290	370	455	490	543	18
-	19	1,58	156	224	303	389	479	516	572	19
YEARS			5	10	15	20	25	27	30	-

-

Table 4. The final sum of percents (interests) for all term of crediting

Cur	Interests		Terms Crediting (years / of months)							%% year
			5	10	15	20	25	27	30
	Year-	Month	60	120	180	240	300	324	360
CR	0	0	0	0	0	0	0	0	0	0
-	1	0,08	3	5	8	10	13	14	16	1
-	2	0,17	5	10	16	21	27	29	33	2
-	3	0,25	8	16	24	33	42	46	52	3
-	4	0,33	10	21	33	45	58	64	72	4
-	5	0,42	13	27	42	58	75	82	93	5
/	6	0,5	16	33	52	72	93	102	116	6
/	7	0,58	19	39	62	86	112	123	140	7
/	8	0,67	22	46	72	101	132	144	164	8
YEARS			=5=	10	15	20	25	27	30	-
$	9	0,75	25	52	83	116	152	167	190	9
-	10	0,83	27	59	93	132	173	190	216	10
-	11	0,92	30	65	105	148	194	213	243	11
$/rb	12	1	33	72	116	164	216	237	270	12
rbl	13	1,08	37	79	128	181	238	262	298	13
-	14	1,17	40	86	140	198	261	287	327	14
-	15	1,25	43	94	152	216	284	312	355	15
-	16	1,33	46	101	164	234	308	338	384	16
-	17	1,42	49	109	177	252	331	364	413	17
-	18	1,5	52	116	190	270	355	390	443	18
-	19	1,58	56	124	203	289	379	416	472	19
YEARS			5	10	15	20	25	27	30	-

1. English pages. Main (7 kb)

2. Russian pages.Main (8 kb)

3. The brief contents of the placed themes (9 kb)

   THEMES of CONSTANT ROUBLE

4. Constant Rouble - against dollar. A rate of a CR - Index of the Prices. The CR will ensure real preservation and the augmentation of a buying power of the savings, will make the credits by more accessible (15 kb)

5. In what the reason and paradox of the Unreal Interest rates? The disputable inflationary forecast (10 kb)

6. Comparison acting and offered of tax systems. As To double a gross national income, having got rid from the Parasitic Inflationary Taxes. Tax reform (18 kb)

   Important theme. Without tax reform will not be essential growth economy and standard of living, neither new housing accommodation, nor decision of housing problem.

   The Parasitic Inflationary Taxes (PIT) "eat" enclosed in production the capitals: constant and turnaround, salary and pension. This theme is more important than the mortgage, since from anything is received anything.

   An Example of a PIT for a Working capital (WC)
   - Inf - 0 %: the Prices, the Cost Price (CP) and rate of a CR do not vary. The businessman Somebody on 100 Millions Roubles (mr) has acquired components. They were not necessary, and in one year he has reseiled them till a CP for the same 100 mrs. Profit or Added Cost (AC) - 0. The taxes - 0. Losses - PIT - 0. Is possible at necessities to acquire new components.
   - Inf - 100 %:The Prices, CP and rate of a CR for one year are doubled. In the beginning of year 100 mCRs = 100 mrs. In one year 100 mCRs = 200 mrs. Somebody reseils furnishing on a new CP, since the prices were doubled, for 200 mrs, receives imaginary inflationary profit (or imaginary inflationary AC) - 100 mrs, pay the taxes (from the imaginary profit?!) - 50 % - 50 mrs. He still has 150 mrs or 75 mCRs, on which it is possible to acquire only 75% of components. Real losses - 25% real buying power of a WC. It also is a PIT for a WC.
   The indicated example of a PIT is equal half of ifference between a new real CP and old, indicated in tax declarations. I.e. at a zero Inf of a PIT is not present in general, since. The CP does not vary. With growth of a Inf the burden of a PIT grows also.

   The Losses from a PIT somebody will transfer on the salary of the hired workers. If he will cover the business, the workers and their families, in general, will stay without a piece of bread.

   From the indicated examples it is visible, that at a zero Inf of a PIT is not present in general. With growth of a Inf the burden of a PIT grows also.

   Tax reform
   The essence of tax reform - legislative fixing in the tax declaration of the Cost Price in a CR, that will allow to get rid of a PIT and to make production favourable and fast growing. It:
   - New jobs and decrease(reduction) of unemployment
   - Essential growth of real wages and pensions
   - Additional tax receipts at fast growing economy
   - Decrease (reduction) of expenditures on public account on the unemployment benefits
   - Etc.

   ---

   The MORTGAGE

7. The Mortgage. An introduction theme. Account fixed and differential payments (12 kb)

8. Constant Rouble will make (without the subsidies) the mortgage by more accessible (14 kb)

9. Three formulas of account of fixed payments. What correct? (10 kb)

10. Conclusion of the formula of account of fixed payment (12 kb)

11. On the present the mortgage will begin to work only then, when the overabundance will appear Again entered housing accommodation. Or. Hyperinflation, default and corruption - backs of the subsidiary mortgage (15 kb)