This Southeast Aurora Ranch Home offers an Assumable Mortgage. Presented by Donna Jarock with Coldwell Banker. There are many reasons that make assuming a mortgage balance on a home a great idea. If you have the ability to do so, it make financial sense.
An assumable mortgage can be attractive for several reasons:
- Lower Interest Rates: If the original mortgage has a lower interest rate than current market rates, assuming it can save the buyer money on interest payments.
- Simplified Process: Assuming a mortgage can be quicker and involve less paperwork compared to applying for a new mortgage, especially if the lender allows it.
- Less Down Payment: Some assumable mortgages may require a smaller down payment, making it easier for buyers with limited cash.
- Qualifying: Buyers may find it easier to qualify for an assumption compared to obtaining a new loan, especially if their credit situation is not ideal.
- Avoiding Closing Costs: Assumptions can sometimes come with lower closing costs compared to new loans.
- Transfer of Benefits: Buyers may benefit from the original loan terms, such as specific features or protections that newer loans may not offer.
Overall, an assumable mortgage can provide financial flexibility and savings, making it an appealing option for some buyers.
Most assumable mortgages will require a larger down payment. Which makes it prohibitive for most to take advantage of that lower interest rate. Enter Roam, with Roam they have a product ready to help. The buyer is required to have only a 10% down payment. Roam with help with a 2nd mortgage. This covers the difference between what the loan balance is on the assumption & the 10% down payment from you the buyer. Still a win as you the buyer will have a combined interest rate roughly around 4.7%. (Rates subject to change based on market, credit factors of the buyer.) However, bear in mind this rate is still far lower than the current prevailing rate in the marketplace in most cases.
Facebook
X
Pinterest
Copy Link
