Posts from February 2024

Mortgage Assumption? What's That?

Maybe you have heard of a mortgage assumption in real estate or maybe you have not. With the mortgage rates being higher today than they have been in the last few years, we are seeing mortgage assumptions again in the local real estate market. I am currently handling a mortgage assumption transaction right now for the first time in a very long time.

An assumable mortgage allows the prospective buyer to purchase the home by allowing the buyer to take over the seller's current mortgage. For an assumption to work, the homeowner's mortgage must be assumable. Most conventional mortgages are not assumable. Loans that are insured by the Federal Housing Administration (FHA), Department of Veteran Affairs (VA) and United States of Agriculture (USDA) are typically assumable. The seller must agree to the buyer assuming their mortgage.

At the time that I am writing this, mortgage rates are around 6.5%. If you are looking to purcha...

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