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I've found the picture below, which demonstrates at which RUB/USD exchange rate mortgage in rubles is less expensive, then mortgage in dollars (i.e. when refinancing of dollar mortgage to ruble mortgage should be done).

The vertical axe demonstrates RUB/USD exchange rates from 28 rubles for 1 dollar to 57 (at the moment when the mortgage has been taken). The horizontal axe shows dollar mortgage interest rate from 6% to 11%. The assumption made here is that ruble mortgage interest rate is 13% and the mortgage term is 15 years.

What is the formula used there? I would like to re-calculate it for different (1) exchange rate, (2) term.

enter image description here

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    Generally speaking, mortgages cover properties in the same nation/state/county/city etc as the issuing bank, and so it might be difficult to get a mortgage in US dollars for a property that is in Russia or a mortgage in Roubles for a property that is in the US. – Dilip Sarwate Dec 6 '14 at 15:01
  • @DilipSarwate, agree about mortgage in rubles for a property in US, but.. there are a lot of mortgages given by Russian banks in US dollars for a property in Russia. – LA_ Dec 6 '14 at 18:57

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