It may be too hot to sweep out those rain gutters or clean that messy garage. But there’s plenty you can do in the cool of the indoors to keep your home in peak condition.Today’s
Assumptions Are An Alternative
In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate.
Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates of assumable FHA and VA mortgages in the recent past, it becomes more advantageous to assume the existing mortgages.
FHA and VA loans originated with lower than current interest rates have great advantages for buyers and sellers.
Interest rate won't change for the qualified buyer
Lower interest rate means lower payments
Lower closing costs than originating a new mortgage
Easier to qualify for an assumption than a new loan
Lower interest rate loans amortize faster than higher ones
Equity grows faster because loan is further along the amortization schedule
Assumable mortgage could make the home more marketable
An Assumption Comparison can help determine the savings and financial benefits of an assumable mortgage with a lower rate.
Import to Kunversion
“My mission is to develop long-term client relationships by providing the most professional, informative, loyal and dedicated service in the real estate industry.” As a full service real estate....
Latest Blog Posts
The Pawcatuck Real Estate Market Report is a monthly statement of the average sales price, the median list price and the median price per square foot for Pawcatuck homes for sale.
The Gales Ferry Real Estate Market Report is a monthly statement of the average sales price, the average listing price of Gales Ferry homes for sale and the median price per square foot of Gales