Down Payment Requirements for Assumable Mortgages
Friday, June 05
# Down Payment Requirements for Assumable Mortgages There's no set down payment percentage for an assumable mortgage. Instead, you need to cover the equity gap: the difference between the home's sale price and the remaining loan balance. This is fundamentally different from a traditional mortgage...
Second Mortgages for Assumable Loans Explained
Thursday, June 04
A second mortgage is how most buyers cover the equity gap when assuming a mortgage. You take over the seller's low-rate first mortgage and get a separate loan for the difference between the sale price and the remaining balance.The second mortgage rate will be higher. Count on 8-10% right now. But...
The Blended Rate Strategy: First + Second Mortgage Explained
Thursday, June 04
The blended rate strategy is how most buyers make assumable mortgages work when they can't cover the full equity gap with cash. You assume the low-rate first mortgage, get a second mortgage for the equity gap, and your combined (blended) rate is still well below market.This is the strategy that m...
The Blended Rate Strategy: First + Second Mortgage Explained
Thursday, June 04
# The Blended Rate Strategy: First + Second Mortgage ExplainedThe blended rate strategy is how most buyers make assumable mortgages work when they can't cover the full equity gap with cash. You assume the low-rate first mortgage, get a second mortgage for the equity gap, and your combined (blende...
I've Closed 90+ Assumable Mortgages. Here's What Most Agents Get Wrong
Wednesday, June 03
# I've Closed 90+ Assumable Mortgages. Here's What Most Agents Get Wrong.I keep getting calls from agents who say their buyers are stuck. Qualified on paper. The home is right. The payment isn't. $3,200 a month on a $500K house just doesn't fit their life, and nobody knows what to do about it.Tha...
What Is the Equity Gap in Assumable Mortgages and How to Cover It
Tuesday, June 02
What Is the Equity Gap and How to Cover It The equity gap in an assumable mortgage is the difference between the home's current purchase price and the remaining assumable loan balance — it's the amount the buyer must bring to closing in addition to taking over the loan. For example, if a home sel...