6%? 7%?? 8%??? We get it, interest rates are out of control recently. Did you know that the end of 2021 the average mortgage rate was 2.96%? What if there was a way to get back to that rate?
You may have heard that old adage, "Marry the house, and date the interest rate?" But what if the dating pool is shallow, or just plain murky? Well, there is still a better option for you that most buyers don't know about, and aren't taking advantage of:
The Assumable Mortgage.
What's an assumable mortgage? According to this article from Lending Tree "An assumable mortgage allows someone to find a house they want to buy and take over the seller’s existing home loan without applying for a new mortgage. This means the remaining balance, mortgage interest rate, repayment period and other loan terms stay the same, but the responsibility for the debt is transferred to the buyer."
All loans won't qualify (i.e., most conventional loans will not), however most FHA loans, USDA and VA loans are eligible to be assumed as long as the new buyer meets the financial requirements. In addition, you won't be able to shop around to different mortgage brokers, and you'll have to accept the existing loan terms from the currently lender. But is it worth it to jump through a few hoops to get an interest rate in the 4s, 3s, or even the 2% range?
If you're interested in learning more, or you'd like a list of properties for sale in the DFW metroplex with assumable financing, give me a call today at 214-799-0019 to discuss your options. And if you feel this information could help someone else, feel free to #HitThatShareButton.
