I'm looking at a deal and the seller is saying you can pay all cash, get a new loan or assume existing loan with 5% interest until Sept 2018 then jumps to 8% after that. there might be a 1% assumption fee. (what is that?)
the seller went thru this company to get the loan.
Has any used Investors Financial Corporation to buy a piece of property? or to take over an existing loan from a seller from this group? how does it work? www.thenotepeople.com is there website. any advice what would helpful. Thanks
I haven't used them, but can answer your question about the assumption fee.
Some banks when you 'assume' or take an existing loan will charge a fee for doing so. In this case they will charge 1% of the loan to allow you to assume or take the existing loan.
Current loan that will be taken over is 100k, the bank will charge 1k as a cost for them to let you do that.
Thank you Jacob for clearing that up, thanks.