If you would like to automatically receive emails when a home is listed for sale in greater Sacramento area with an assumable mortgage then please email me at Jason@MeetJasonWalter.com
My wife and I did this. We went under contract on 10/30/2023 and closed on 1/8/2024. We locked in a 2.26% interest rate on a $300k home for 27 years. Our mortgage payment out the door with PMI and Escrow is $1176 per month.
@ we looked for almost a year, 25~ houses. 11/2022-10/2023. Because of the 6.25 and rising rates our purchase price kept shrinking so that was limiting what houses were showing (to keep our payment where it needed to be). Our realtor shared a Facebook post that another realtor she had worked with in the past. She made a post selling her clients home which was the 300k house at 2.26% with a roughly 93k delta. We brought roughly 87k cash to closing and we had the sellers, our realtor and their realtor pay part of closing costs. We started at a 207k loan balance in January. It is at 201k in 10 months. With a 6-7% rate we would’ve only paid $1k to principal. Interest rates are important people. Use an amortization and a total cost of loan calculator to realize how important the interest rate affects your payment and what goes to paying the house off. Use this scenario in your video if you need to. We closed in 01-2024 so keep hope people.
@@JasonWalter1 our realtor shared it with us by text. Another realtor that our realtor had worked with in the past, that realtor listed a home as an assumable mortgage. Of course we had never heard of it before. It sat a month and our first offer was declined before our second offer was accepted and put in contract. Nobody knew what they were doing. The closing process 1/10. The money saved on our loan and the financial choice we made is a 10/10.
Thinking about this broadly, the only winners are those who are paid fees! I don’t see banks favoring this on any large scale. The buyer does get an artificially high priced home for an artificially low rate! It also helps home value indexes. Sad times
What makes the home price artificially high and the rate artificially low? Broadly speaking this should have no impact on HPI's as there's a minimal amount of these type of transactions (only a guess based on the low amount I'm seeing for sale online and a small percentage of those would actually work for the buyer unless the seller has only owned the home for about 2yrs or less).
@@JasonWalter1 “artificially” would be a deviation from wages, as paired to the long term average for a given area. The rate is pretty obvious, as you are getting below the market average. You know, the things we’d want our realtor to know and be honest about.
I would recommend working with a real estate agent because they can ask the listing agent (seller's agent) if the loan could be assumed. You wouldn't know by looking at public websites such as Zillow.
9:49 even more money saved if the seller is 4 yrs into the loan so one has 26 yrs left to pay. over starting a new 30 yr loan , wonder will the lender allow a 2 nd carried by the seller ?
The downside of using this technique is a buyer may have to pay a large sum if the seller purchased the home years ago though. So you would save total interest paid but have to pay a large amount upfront. Good question about the 2nd. I'm guessing because the mortgage is in the 1st position it wouldn't be an issue but anyone know?
People, please don't buy a house if you can't afford it. If you're looking for an assumable loan, you probably CAN'T afford it. You'll eventually regret buying that house just because of the low rate (i.e., buyer's remorse).
I agree with you that one shouldn't buy a home if they are going to be stretched thin. However, just because someone buys a home with an assumable mortgage it doesn't mean they can't afford to buy a home.
@@Xray8906 have you noticed the talking points are focused on Trump’s tariffs making goods more expensive?! This may be true, but it purposefully misses many points. 1) only foreign products are subjected to them 2) innovation, money on American products (albeit possibly more expensive), and competition ensue in America-leading to lower costs and more cash flow in America (MAGA) 3) tariffs (initially) paired with foreclosure programs ending are a perfect storm for cash heavy investors and buyers
Great question. In general, assumable mortgages have occupancy requirements so it may not be possible. I've read there are exceptions though so it would need to be verified by the seller's lender.
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If you would like to automatically receive emails when a home is listed for sale in greater Sacramento area with an assumable mortgage then please email me at Jason@MeetJasonWalter.com
My wife and I did this. We went under contract on 10/30/2023 and closed on 1/8/2024. We locked in a 2.26% interest rate on a $300k home for 27 years. Our mortgage payment out the door with PMI and Escrow is $1176 per month.
AWESOME! How did you find the house?
@ we looked for almost a year, 25~ houses. 11/2022-10/2023. Because of the 6.25 and rising rates our purchase price kept shrinking so that was limiting what houses were showing (to keep our payment where it needed to be). Our realtor shared a Facebook post that another realtor she had worked with in the past. She made a post selling her clients home which was the 300k house at 2.26% with a roughly 93k delta. We brought roughly 87k cash to closing and we had the sellers, our realtor and their realtor pay part of closing costs. We started at a 207k loan balance in January. It is at 201k in 10 months. With a 6-7% rate we would’ve only paid $1k to principal. Interest rates are important people. Use an amortization and a total cost of loan calculator to realize how important the interest rate affects your payment and what goes to paying the house off.
Use this scenario in your video if you need to. We closed in 01-2024 so keep hope people.
@@JasonWalter1 our realtor shared it with us by text. Another realtor that our realtor had worked with in the past, that realtor listed a home as an assumable mortgage. Of course we had never heard of it before. It sat a month and our first offer was declined before our second offer was accepted and put in contract. Nobody knew what they were doing. The closing process 1/10. The money saved on our loan and the financial choice we made is a 10/10.
Thanks for what you do
You're welcome! Thank you for watching my videos.
Good morning everyone
I hope your morning is off to a great start, Rene.
@JasonWalter1
Busy as usual, my friend.
But, always productive.
Onwards and upwards, i
I always say...
HAVE A FANTASTIC WEEK
Thank you! You too.
Be ready to have the seller’s “equity” in the form of a down payment. The only way I’d do this, is if a nice price reduction was negotiated as well.
Thinking about this broadly, the only winners are those who are paid fees! I don’t see banks favoring this on any large scale. The buyer does get an artificially high priced home for an artificially low rate! It also helps home value indexes. Sad times
What makes the home price artificially high and the rate artificially low? Broadly speaking this should have no impact on HPI's as there's a minimal amount of these type of transactions (only a guess based on the low amount I'm seeing for sale online and a small percentage of those would actually work for the buyer unless the seller has only owned the home for about 2yrs or less).
@ artificially inflated home price! A sale that normally would not take place, happens and is averaged in!
@@JasonWalter1 “artificially” would be a deviation from wages, as paired to the long term average for a given area. The rate is pretty obvious, as you are getting below the market average. You know, the things we’d want our realtor to know and be honest about.
How to even ask seller do you have FHA or VA loan?
I would recommend working with a real estate agent because they can ask the listing agent (seller's agent) if the loan could be assumed. You wouldn't know by looking at public websites such as Zillow.
Do you have to qualify for VA or FHA or assume these loans?
Yes, you still have to qualify.
9:49 even more money saved if the seller is 4 yrs into the loan so one has 26 yrs left to pay. over starting a new 30 yr loan , wonder will the lender allow a 2 nd carried by the seller ?
The downside of using this technique is a buyer may have to pay a large sum if the seller purchased the home years ago though. So you would save total interest paid but have to pay a large amount upfront. Good question about the 2nd. I'm guessing because the mortgage is in the 1st position it wouldn't be an issue but anyone know?
As a seller though, I would be very hesitant to offer seller financing in the 2nd position.
Happy Hump Day Jason!😊 #REALESTATEISLOCAL #LETSGETNERDY
Happy hump day, Steve!
People, please don't buy a house if you can't afford it. If you're looking for an assumable loan, you probably CAN'T afford it. You'll eventually regret buying that house just because of the low rate (i.e., buyer's remorse).
@theRetainer..Great post, Broke realtors and over leveraged flippers are panicking using scare tactics and belittling the uneducated.
I agree with you that one shouldn't buy a home if they are going to be stretched thin. However, just because someone buys a home with an assumable mortgage it doesn't mean they can't afford to buy a home.
This is true! There is no substitute for final price! Save and/or negotiate.
Wild thought, the people who are unable to afford the house aren't watching youtube videos about the market or smart financial decisions.
@@Xray8906 have you noticed the talking points are focused on Trump’s tariffs making goods more expensive?! This may be true, but it purposefully misses many points. 1) only foreign products are subjected to them 2) innovation, money on American products (albeit possibly more expensive), and competition ensue in America-leading to lower costs and more cash flow in America (MAGA) 3) tariffs (initially) paired with foreclosure programs ending are a perfect storm for cash heavy investors and buyers
1😊
GM!!!
Can I get a assumable loan for rental investment?
Great question. In general, assumable mortgages have occupancy requirements so it may not be possible. I've read there are exceptions though so it would need to be verified by the seller's lender.