Benjamin Franklin said “An investment in knowledge pays the best interest”.  So, when you’re shopping for a loan, it’s important to understand all of your options. Here are a few current facts. Rates between 2% – 4% are still available but only if you take over the sellers mortgage. These are called Assumable Mortgages. Rates

This is an essential first step to shopping for a home. Realtors will even ask for a pre approval letter to begin the process. It simply confirms that you are qualified to buy.  Although you will not be utilizing that particular lender services, a pre approval letter proves that you are credit worthy for a

Transferring ownership of a property requires the buyer to obtain a deed. A new deed will need to be executed and recorded. The seller and buyer can jointly change this at their county clerks office for a small fee. The document you want to use to change the deed is called a “Quit Claim Deed”.

The buyer or the bank can transfer the title. Lenders normally complete this automatically at no cost. Otherwise recording it can be done at the county court house for less than $50 in most areas.  What is more important than the “Title” is the “Deed”. Title companies do not hold the Deed to any property, the

An important part of the assumption package is the release of liability document. This protects the seller and is available for “All” assumable mortgages.  The Federal Housing Commissioner approved this March 20, 1990. See for yourself here. Without a release of liability the bank might have the right to collect the balance due if the

Here are a few fundamental reasons. Attractive Pricing Sells The assumable price is more attractive to buyers.  1. Buyers would assume a lower mortgage rate that is usually between 2-4%.  2. Buyers do not need much out of pocket money to assume a loan.  3. Buyers with Lower credit Scores can afford a home.  4.

The seller and buyer can jointly change this at their county clerks office for a small fee.  The document you want to use to change the deed is called a “Quit Claim Deed”.  While its recommended to consult with a property attorney before filing a new deed, you can prepare the document yourself. Sometimes this

Take advantage of your current mortgage terms.  FHA, VA, & ARM loans are assumable mortgages. This allows you to transfer your financing to a buyer with minimum expense and maximum benefits. This technique gives consumers another way out if they have not had success selling the traditional way. It drives down homeowner cost, releases all

Assume a Loan that has already fulfilled its PMI term.  That’s right, a good share of Assumable Loans do not have PMI.  Why, Before the downward spiral of real estate values began in 2008 many loan products did not require Private Mortgage Insurance.  This makes old Assumable loan products more attractive than ever. Plus newer

Improve your selling situation.  Transferring your assumable mortgage is a better solution for people with negative equity.  Here are 4 things you no longer have to do if you have an underwater mortgage. Wait it out –  For some properties it could take decades to recover the amount of negative equity the housing crisis caused.