As you shop for your new home or condominium, there is a new tool you and your real estate agent need to keep in mind! (If I’m your agent, I’ll be looking at this option for you for sure!) FHA Assumable Mortgage!
We are now back in the days of looking to assume a Seller’s mortgage. What’s that, and what’s the advantage?
Well, imagine you are shopping for a home or condo, and as you get your mortgage pre-approval, the current interest rates are, say 5%. Well, you could be looking at a home and the current owner purchased it with an FHA mortgage at 3.5%. An FHA mortgage is assumable provided you meet all the borrower qualifications! You just shaved 1.5% interest off your loan! This will be a huge savings AND make a big difference in your monthly payment!
Here is a link to an article that appeared in the New York Times. If the link is broken or does not work, just be sure to ask me (or your real estate agent) to see if there is an assumable mortgage on the home or condo you are looking to buy!