your key to Rates below market average!!
are you ready to buy the home you want with a payment you can afford?
Are you dreaming of owning your dream home while securing an incredible financial advantage? Look no further, as a mortgage loan assumption presents you with a variety of benefits that can turn your dreams into reality! Let us walk you through the remarkable advantages of assuming a mortgage:
1. Unlock an Unbeatable Interest Rate: Imagine enjoying an interest rate lower than what's currently being offered in the market. With mortgage loan assumption, this becomes a reality! Assumable loans often come with historically lower interest rates, giving you a significant financial edge and saving you substantial amounts over the life of the loan.
2. Embrace a Reduced Loan Term: Starting anew with a brand-new mortgage can mean years of payments ahead. However, with loan assumption, you bypass this lengthy process and step right into an existing loan with reduced terms. This means you're closer to becoming mortgage-free sooner, allowing you to invest your money in other life goals and pursuits.
3. Experience Lower Monthly Payments: Who doesn't appreciate more financial breathing room? When you assume a mortgage, you'll likely find yourself with lower monthly payments compared to securing a new loan in today's market. This financial relief can make a significant difference in your overall financial well-being.
4. Reduce Fees, Enjoy Simplicity: Traditional mortgage applications often come with a slew of fees, adding to the burden of buying a home. By choosing mortgage loan assumption, you'll experience reduced fees, as there's no third-party lender involved. This simplicity streamlines the process, making homeownership more attainable and budget-friendly.
5. Skip the Appraisal Hassle: Appraisals can be a stressful and time-consuming aspect of the home buying process. However, with mortgage loan assumption, you'll breathe easy, as no appraisal is required. You inherit the existing loan terms, removing this additional hurdle and speeding up the path to homeownership.
Our expertise in facilitating seamless transactions between buyers and sellers allows you to enjoy these incredible benefits without any unnecessary complications.
Take advantage of unbeatable interest rates, reduced loan terms, lower monthly payments, simplified processes, and no appraisal hassles. Make your homeownership dreams a reality with mortgage loan assumption. Join us today, and step into a brighter, more financially secure future!
Example scenario:
John and Mary want to assume the home from Bill and Susie.
Bill and Susie are selling their home for $600,000, but they owe $525,000 to the current loan servicer.
Their interest rate is 3.5%. Their full monthly payment(including taxes, mortgage insurance and insurance*) is $3,466.00. (They bought it at 550,000 and put 3.5% down)
John and Mary would apply for a loan assumption with the current loan servicer to take over the existing mortgage of $525,000. This would include a full underwriting approval.
John and Mary would need to pay the difference of the purchase price and loan amount to Bill and Susie(75k). This money would need to be paid at closing.
If John and Mary were approved there would be no home appraisal.
After all the underwrting conditions were satisfied the home would go to closing and the mortgage would be transferred to John and Mary. Bill and Susie would be released from the current debt.
If John and Mary purchased that home at a 7% interest rate with 75k down, their home payment could be $4,534. This would include taxes, mortgage insurance, and insurance*. That is over $1,000 more a month!! With a loan assumption, you can put the same amount of money into the home and save an INSANE amount every month. In fact, you will likely pay less in loan fees because you don't hire your own loan originator or pay for an appraisal.
*In both scenarios I used $7,500 for annual taxes, $2,100 a year in homeowners’ insurance, and $241 for mortgage insurance. I did include the UFMIP cost (1.75% = 9,288) in the original purchase scenario. Monthly MI for the 2nd example would be according to the loan program and MI rates. I am not offering loan terms or quoting market rates. This is purely educational for an example. The terms of the loan would be whatever the current NOTE is on the seller's home.