What is an Assumable loan?
An Assumable Loan is a loan that can be transferred from the seller of a property to the buyer of a property.
For example: I am selling a home for $150,000, and I have an interest rate of 4.5% with a balance of $120,000. I am advertising the fact that I have an assumable loan. This means that as long as the buyer can pay the $30,000, they can assume the loan that I have on my home.
This would be a good option for the buyer if rates are increasing (or at least if rates are above 4.5%)
This is a good way for people to advertise when they are selling their home in a market where interest rates are high.
For people that are buying homes right now, this could be a great marketing option if you are selling your home in the future. Most likely, the housing market will rebound and rates will increase. Right now is a great time to buy a home! Rates are low, and the federal government is offering money to First Time Home Buyers AND Buyers that are trying to get a bigger or better home!
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