Russians have to overpay a significant amount for long-term mortgage loans.
For a mortgage of 25 years or more, you have to overpay twice as much as for a loan for 10 years.
Igor Balynin, PhD in Economics and Associate Professor of the Department of Public Finance at the Financial University under the Government of the Russian Federation, told Gazeta.Ru about this.
He explained that for a mortgage loan of 12 million rubles at a rate of 30% over 10 years, the overpayment will be 25.96 million rubles, over 20 years - 60.19 million rubles.
A mortgage for a term of 25 years will result in an overpayment of 78.95 million rubles.
The loan term has also been increased to 63 months, during which the overpayment will amount to 18.5 million rubles.
The expert explained that a loan for 303 months is considered extremely unprofitable.
Balynin also said that a loan issued for a period of more than 20 years is not a savings, but an overpayment.
Author: Elena Gutyro
